Marketing of Financial Products Sales Management Project

Financial Services Industry Overview

Marketing of Financial Products

Introduction
Rising population and increase in disposable income Huge growth potential Insurance a booming industry, increased FDI investments ASSOCHAM projects the Indian Insurance to be worth USD 60 bn by 2010 (Source : The

Financial Express)
Dynamic industry flexibility of riders, market linked plans, Symbiotic relationship LIC is the market leader ICICI Prudential 2nd in the market, leading private player 1st insurance company to implement Six Sigma

MD/CEO HEAD OF SALES SVP/ VP SALES ZONAL MGR/ AVP REGIONAL MGR AREA MGR BRANCH HEAD/SALES MGR UNIT MGR/ DEV MGR

ORGANISATIONAL HIERARCHY

ADVISORS

ADVISORS

Job Profile of a Sales Manager

Lot of Non-Sales Skills Unit Managers major job is to recruit and motivate the advisors Training & Setting objectives

Activity Planning & Forecasting

Promotions & Evaluation Staff Management Dealing with high profile clientele managing key accounts

Customer Portfolio
Life Stage Primary Need Life Insurance Product

Young Unmarried

Asset Creation

Wealth Creation Plans

Young Newly Married

Asset Creation & Protection

Wealth Creation

Married with kids

Education plans, Asset Creation & Protection Planning for retirement and asset protection Health plans

Education, Wealth Creation

Middle aged and above

Retirement Solutions

Across all life stages

Health Insurance

Selling Jobs
Marketing of Financial Products

Selling Jobs Overview

Products -> Relationships Customers -> Clients Major Challenges
Trust Benefits

Alleviating Concerns
Fear of Salesman Fear of Change Fear of Losing Ownership Fear of Losing Self Esteem

Source: 22 Keys to Sales Success: How to Make it Big in Financial Services

Selling Jobs ICICI Prudential

Life Insurance Plans
Retirement Solutions

Health Solutions

Group Plans

Rural Plans

Households/ Individuals

Individuals

Individuals

Corporate/ Societies

Families/ Individuals

Telecalling/ Sales Visits/ Advertisement

Telecalling/ Sales Visits/ Advertisement

Telecalling/ Sales Visits/ Advertisement

Corporate Sales Department HR Contacts

Tie up with MFIs

Source: ICICI Prudential Website

Recruitment/Training/Evaluation
Marketing of Financial Products

Recruitment Methods

Direct Method
On Campus Analytic, Numeric, Psychometric Tests Summer Interns PPOs

Indirect Method
Advertisements Segment based advertisement

Third party
Employment Agencies Recruitment Firms Professors

Training - Types

17 day Training Schedule

Align the Workforce Core Values of IPru IRDA Training Requirements Product Specific Training

Revision Session
Licensing Exam Preparation

Tiger Program
High Performers Tiger Trainers

Pinnacle Program
Advisors Meet Performance Criteria

Training Sales Process

Objective of Sales Call

Review known Facts - Prospect

List Benefits Selling points from Product Benefits File Testimonials, Photos, Specification Sheets List of Objections Pre Closing Summary

Source: ICICI Prudential Website

Rewards/Compensation
Advisors Commission based, not on payrolls Membership of the I Prudential Star International, Star India Club, MDRT (Million Dollar Round table) Contests: Attractive R&R structures in place to award the performing Sales team members

International and national trips, Gold , Gift vouchers, Gift items etc
Insurance sales managers are often paid a flat salary, plus bonuses Provides the motivation to continue to sell products and up sell existing clients Bonus is tied to the productivity. This combination creates a highly motivated manager who will find the best ways to increase sales

UDAAN
Campus Program for Executive Trainees (ETs) Effective Email Effective Sales Calls

Time Management
Sales Letter

Major Accounts
Marketing of Financial Products

Major Accounts
Mixed Customer Profile Salaried & Business Class Age Group: 27- 40 Retirement Plans [ULIPS] Major Chunk Child Related Plans Also Popular

Reaching the Customer: Distribution Channels/Value Added Services

Marketing of Financial Products

Distribution Systems - Types

The channel can be distinct on the basis of 2 factors: Personal Distribution Systems: Includes all channels like agencies of different models and brokerages, bancassurance, and work site marketing

Direct Response Distribution Systems: Includes method whereby the client purchases the insurance directly

Distribution Strategy
Continuous Expansion
New Branch Roll out [Approx.] 2/Day: 2006-08

Exploring Direct/Partnership Distribution

3,300 Touch Points - India Direct Distribution Channel - 53 cities Launched Pharmacy Channel

Widening International Reach

Offices in Dubai & Bahrain

Distribution Systems: I-Pru

ICICI Prudential continues to create a nationwide agency network, complemented by increased focus on non-agency distribution

Value Added Services

Online payment gateway on Website for customers to choose from various options available like Bill Junction, Credit Card, Direct Debit, Infinity etc Information like Policy fund value, Claim status etc made available to customers through SMS, Current NAV (Net asset value) Online policy revival facility available for customers Online application for retirement, wealth, health policies Online Unit statements Quarterly newsletter for customers Product information readily available to customers on website and information sent periodically through SMS Special NRI section on Website

Sales Support/Automation
Marketing of Financial Products

Sales Support/Automation
Agency Management System
Pre-Licensing: Profiling, Training and Licensing Post-Licensing: Agent Servicing Re-Licensing: License Renewal Process

CRM
Single View Customer Up-to-date information Selling Activities Enhanced

Sales Training Automation

Measure and Monitor

Sales Commercial Application

Computation of Payouts

PACE Personalized, Accessible, Convenient, Easy

Complete employee database Personal Profile of Employee Relocation Separation Payroll & Compensation Superannuation Details Leave and Attendance details Learning and Development Internal job postings, etc.

Reference : Internal Company Sources

Sales Support/Automation
Very Robust IT system in place Inventory Management System (to order online stationery) Advisor recruitment related data entry software Travel portal for travel related bookings and claim reimbursement thereof Reports to track performance Receipting, Underwriting and Policy Issuance software Knowledge Repository for Processes and Product information

Motivating/Differentiating
Marketing of Financial Products

Motivating the Sales Force

Relentless Pressure

Personal Selling
Champions Club Rewards -> Recognition Self Actualization

Differentiating the Sales Force

Several Companies -> Coveted Client

Same Product
Tweak the Product Brand Proposition Sales Support

Thank You
Questions???