The document discusses how consumer technology is radically changing our lives and the digital trends of cloud, mobile, and social media are changing industries. It highlights how the world has gone social and mobile, with over 1.7 billion people on social networks. It also discusses how consumer expectations have changed with the rise of digital, and that traditional distribution models are outdated. The opportunities that social media provides for finding new clients and recruits are also covered.

1. THE FUTURE
OF
DISTRIBUTION &
MARKETING
Staying Relevant in the Digital Era
CLARA SHIH
CEO, Hearsay Social
Board Director, Starbucks
cshih@hearsaycorp.com
@ClaraShih

2. “All aspects of human
life are being digitized.”
Geoffrey Moore
Organizational Theory

3. CONSUMER TECHNOLOGY IS RADICALLY
CHANGING OUR LIVES

4. Traditional
vs.

5. DIGITAL TRENDS ARE CHANGING THE
INDUSTRY
CLOUD MOB I LE SOCI AL

6. 1.7B+ People worldwide
on social networks
hours spent worldwide
on social networks each
month 7B+ Of US online
population uses
social networks 74%
Foursquare
Google+
LinkedIn
Twitter
Facebook
First Social Networks
Launched
2005
2007
2009
Today
THE WORLD HAS GONE
SOCIAL AND MOBILE

7. 3 Choices…
Ignore it,…

8. 3 Choices…

9. You have to think differently.
G R O W B U S I N E S S O N S O C I A L |

10. 1. Changing client expectations
2. Aging advisors and generational gap
3. Outdated distribution model

11. “Human contact has become relatively scarce, and
therefore valuable, in a digitally-driven society.”
Source: “Valuable Humans in Our Digital Future,” Quentin Hardy, New York Times, May 3, 2014
New York Times
1
Play to your strengths

12. PREFERRED PURCHASE METHOD ACROSS
GENERATIONS IS STILL FACE-TO-FACE
Preferred Purchase
Method+
All
Households
Gen Y Gen X
Baby
Boomers
Silent Gen
Face-to-face with a
financial professional
58% 54% 54% 58% 68%
At my or my spouse or
partner’s place of work
19% 22% 21% 20% 7%
Through the Internet 16% 20% 19% 14% 13%
Direct by mail or
telephone 7% 4% 6% 8% 12%
*Source: Bob Kerzner, LIMRA DLRT Feb. 2014
Data: 2010 U.S. Life Ownership Study

13. Social networking is about
enhancing human capital.

14. Online sources influence
offline purchases
Personalized and personal
service
Ability to communicate on
their terms
CHALLENGE 1: TECHNOLOGY HAS
CHANGED CONSUMER EXPECTATIONS

15. THE OPPORTUNITY: 1B+ CLIENTS
BROADCAST BUYING SIGNALS EVERY DAY
G R O W B U S I N E S S O N S O C I A L |

16. MCKINSEY LIMRA STUDY: KNOWLEDGE OF
LIFE EVENTS LEADS TO INCREASED SALES
3 10% lift
Knowledge of 3 or more life events Average production gain
Source: 2012 McKinsey LIMRA survey of
financial advisors.

17. 70%
of companies have programs
supporting financial professionals’
use of social media.
G R O W B U S I N E S S O N S O C I A L |

18. 61%
of advisors surveyed said they had
landed a new client
directly from
social media
2011 HubSpot survey of 611 financial
advisors in all specialties.

19. 77%
of financial advisors surveyed said
social media helps
with client retention
*2013 Accenture Report "How
Tech-Savvy Advisors Can
Regain Investor Trust"

20. CHALLENGE 2: AGING ADVISORS
AND THE GENERATIONAL GAP

21. Today’s recruits aren’t going to find you.
You have to find them.

22. FIND RECRUITS WHERE THEY ARE

23. SOCIAL HELPS NEW ADVISORS
BUILD THEIR BUSINESS FASTER
“Social media is the
natural tool for me to
reach out to my
contacts to start
building my book of
business.”
– 1st-year Advisor

24. CHALLENGE 3: TRADITIONAL
DISTRIBUTION MODEL IS OUTDATED
Revenue is directly proportional to distribution.
Online direct sales is emerging but selling predominantly simple, low-margin products.

25. INTERNET “DIRECT” SELLING vs.
ADVISOR-LED, RELATIONSHIP-BASED SELLING
Sell Direct
Commoditized goods and services
purchased mainly on price
Sell Through Trusted Advisor
Complex products and services
that require advice and
explanation
vs.

26. BUT what if digital weren’t separate from advisor channels?
What if they could combine forces?

27. THE ADVISOR’S NEW PLAYBOOK
FOR THE SOCIAL ERA
Just like the Yellow Pages, being listed isn’t enough.
We must teach advisors how to grow business on social.

28. GROW BUSINESS ON SOCIAL |

29. In the past:
How Life Insurance was Sold
By
Phone
In
Person
Yellow
Pages
A g e n t / A d v i s o r

30. Today’s advisor must adapt to stay
relevant and reach more clients.
A g e n t / A d v i s o r
Web
By
Phone
Email
Mobile Chat
In
Person

31. BEYOND SALES & MARKETING

32. EXAMPLE: SINGLE CUSTOMER SERVICE
EXPERIENCE WILL BE THE EXPECTATION
Policyowners: Importance that all
service channels are integrated
Percent rating very or extremely important
78% 68% 63%
Gen Y Gen X Baby Boomer
Source: Pinpointing Preferences, LIMRA, 2014.

33. WHICH SERVICE CHANNELS MATTER IN
THE FUTURE
69%
43%
30%
19%
79%
61%
56%
14%
Financial professional Company (mail, phone) Online to the company No service needed
Used in the past Desired for the future
Source: Pinpointing Preferences, LIMRA, 2014.

34. The next frontier for firms to thrive
in the digital era
Research Purchase
Customer
Journey
Aware
Refer
www
Intelligent
Interactions
Single
Customer
View
Engage
Predict
Insight
Analyze
Enhance
Collect
INFORM & DISCOVERY
MINING BIG DATA
RELATIONSHIP BUILDING
& MONITORING
1
3 2

35. Innovation is everyone’s job
G R O W B U S I N E S S O N S O C I A L |

36. SUCCESS IN DIGITAL ERA REQUIRES
LINE OF BUSINESS SPONSORSHIP
Marketing Compliance
Wholesalers Producing Managers
Distribution
Social media and digital initiatives have risen to the leadership team’s agenda.
Shift from compliance to business-driven; Shift from optional to mandatory.

37. HOW TO LEAD YOUR TEAM TO
SUCCESS IN THE DIGITAL AGE
① Time to reflect, re-tool, respond.
② Lead by example – sign up for social, understand digital.
③ Enable your champions for innovation in your organization.
④ Resist the naysayers.
⑤ Be the innovation curator to connect the dots and prioritize.

38. Thank you!
Clara Shih
cshih@hearsaysocial.com
linkedin.com/in/clarashih
facebook.com/clarashih
@clarashih