- No (51%)
- Yes (40%)
- Not sure (9%)
A possible disconnect between the perceived value provided by BDMs and the actual value they deliver may be one explanation for the relatively low level of adviser satisfaction with BDMs and the future relevance of their current services.
Responding to our latest poll question, 53% of advisers have indicated they are not satisfied that the current services they receive from BDMs will remain relevant to their future business needs. A little over a third (36%) of advisers agree, however, that their BDMs’ current services will retain their relevance in future, while 11% are undecided.
In attempting to draw a conclusion from our current poll comments (see: BDMs and Value), we sense a level of frustration within adviser ranks, where that frustration is directed as much towards the life companies as they are to the BDMs themselves. From one adviser, who initially acknowledges that some BDMs are very helpful and a real resource in fixing issues, he adds:
The year ahead will be an interesting one for all of us…
“But in terms of adding value, very few do, likely because the life offices/fund managers training programmes don’t focus on this. The year ahead will be an interesting one for all of us.
Another adviser comments:
“They can be helpful in terms of some “eye opening” or identifying a sweet spot but I would agree that the most “help” required is in terms of someone actually helping me “fight” their systems.”
Contributing to this picture has been adviser commentary on our story last week about BDMs being pressured to perform more for less. In that article, we reported Business Health found ‘…80% or more of development managers stated they delivered business and strategic planning, business coaching and sales and marketing assistance.’ But this adviser appears to refute this statement:
“I’m not anti-BDM AT ALL, but if BDMs aren’t helping with admin issues that require escalation, product-specific wording for SOA’s, product updates, and general enquiries, what are they doing? When was the last time your BDM offered you ‘strategic planning, business coaching, or marketing assistance’?”
Another adviser also commented that none of the BDMs who service his business provide any strategic planning at all.
Meanwhile, The 360◦ Solution’s Vicki Writer maintains the BDM of the future will add value by assisting advice firms to develop and maintain their referral networks as well as assist advisers in the development of new revenue streams.
It would appear that the way a BDM adds value to advice businesses in the future will evolve in line with the rest of the financial services sector. But the prevailing adviser view is that the current BDM services they receive, either actual or perceived, will not hold their relevance in future.
Our poll remains open for another week as we encourage you to have your own say on this issue…
At Rando and Associates I would say we are very satisfied with the level of service we receive from our BDMs. We find that they’re innovative and offer solutions.
Of course- we’ve worked hard to get to that place. Early on we started scheduling quarterly BDM days to catch up with them on a regular basis. The calendar for the following year gets sent out every December and it’s an efficient way for us to stay in touch.
Additionally every January we have a day where we invite all the BDM’s to Bunbury. They’re encouraged to bring their underwriters and the only requirement- no shop talk! It’s an opportunity to get to know them personally. When we call, they know the team, the person they are talking to and it helps us to get the best results for the clients.
Yes there are changes ahead but I think ‘satisfaction’ with BDMs requires initiative on the adviser’s side too.
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