Practice management support
Technical support
The rest of the report focused on various "value-added marketing (VAM)" programs that institutions could put in place for their advisors to respond to their concerns. Also, "how institutions can determine which method is best for them."
The survey noted that "given the enormous investment most financial institutions make in VAM programs, it is very disappointing to learn that so few programs are actually found to be worthwhile to advisors." The report noted that only 2.1% of lower-income advisors found VAM programs extremely or very worthwhile, while only 0.6% of higher-income advisors found the same.
CEG has attempted to fulfill these needs by delivering its programs and original research in numerous formats including educational presentations, workshops and comprehensive coaching programs.
With advisors citing strong growth in their businesses as they implement the CEG methodology, the word has spread. According to Bowen, CEG is in the process of expanding to serve top-echelon reps of some of the premier names in the financial service industry. These may include two of Wall Street's "big five," though Bowen is coy about who exactly is involved.
"We've got pilot programs in place with several big names you'd recognize," he says. "They heard about our model and how well advisors were doing with it, and they started calling, which we took as a great compliment. It leads me to believe we're generally in the right place at the right time."
Wall Street Dilemma
Being in the right place at the right time may have to do not only with Bowen's apparent perspicacity but also with Wall Street's outlook. The Street has not been able to halt a 20-year slide in which it continues to lose market share to independent firms and RIAs. Also, while the attrition rate among the big firms is not perhaps as high as it once was, the rate of "shake out" remains a problem; only one of seven financial advisors lasts longer than five years, and only one in four of those who do last make a real success of the business. That works out to a success rate of less than 10%-in a service business that should average closer to 20%.
"Wall Street needs to address what these numbers indicate," Bowen explains, "and I strongly believe they're dedicated to doing so. The days when even the largest firms could simply write off the costs of training and lack of retention are probably past."
"They believe we may be able to address certain difficulties that haven't yet been resolved," Bowen adds. "We believe we can help by providing services in an area that we were surprised as anyone else to find unfilled-the business of providing basic research about wealth-management best practices."