1. "R A P"
Relationship Audit Process
Patrick A. Clifford
In thisrapidlyevolvingmarketplace,insurance andinvestmentcompaniescannolongeraffordtosimply
provide products…theyneedtosupporttheirdistributorsineveryaspectof the business. Tothisend,
we introduce the Relationship AuditProcess("RAP").
The processconsistsof four primarycomponents:
1. Initial Meeting
2. Plan Development
3. Plan Monitoring
4. Annual Review
Initial Meeting:
The firststepin the processisto set upa meetingbetweenkeypeople atyourfirm(Bank,B/D,
Wirehouse,MarketingCompany) andourmanagementteam. Meetingparticipantsshouldrepresenta
cross sectionof bothcompaniessothat all areas,functionsandconcernscan be addressed. Thisisnot
salesandmarketingmeeting,it'sarelationshipmeeting!
Thismeetingwill serveasa forumto discussall business-relatedissues. Youcan expectusto provide
informationandcommitmentsinseveral areas,including:
Sales Support Product
WholesalerCoverage(Inside/Outside) Development (Exclusive/PrivateLabel/Proprietary)
Marketing Materials/Sales Literature Positioning
Advertising Implementation/RollOuts
Contests/Promotions Awareness Campaigns
Service Compensation
Customization/Technology Usage Amount/Rate
TurnaroundTimes Front End/Trails/Combination
Prioritization ofFunctions Timing (Net, Gross, Averaging)
Budget Compliance
Annual Sales Meetings Industry Guidelines (SEC, FINRA, Etc.)
Seminars/Contests State Insurance Department Issues
Marketing Support Regulatory Changes/CourtDecisions
In turn,we will askfor feedbackregardingwhattoexpectinthe followingareas:
Sales Involvement
Premium &Sales Flow Expectations Office Visits (Access &Resource Sharing)
Market Share/PercentageofTotal Account Business Contact Calls by Sales Desk
Cycles (Data on Busyvs. Slow Periods) Services Feedback
Cooperation Compliance
Access toKey Personnelto ResolveProblems Literature/Advertising/PublicRelations
Open Communications/Competitor Information Sales Practices/Regulations
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2. "R A P"
Plan Development:
Upon completionof the initial meeting,awrittenplancontainingall commitmentsandexpectationswill
be developed. The plan,a collaborative effortfrombothcompanies,willdetailspecificactivitiesthat
each partyhas agreedto undertake aswell astime framesforimplementation/completion. Asinthe
initial meeting,the planwill coverall aspectsof the business,notjustsalesandmarketing.
Relationshipswill be developedbetweenourtwoorganizationsatmultiplelevels…wheretheymake the
mostsense!
Plan Monitoring:
The plan will be reviewedbyusfrequentlyatall levelstotrackhow we're doingagainstspecific targets.
We maymodifythe planperiodicallytoreflectchangesinmarketconditions,regulationsordistributor
needs/expectations. We will reviewsalesactivitycomparedtoplanandresearchanysignificant
discrepancies.
Annual Review:
At the end (or beginning) of eachyear,we will sitdownandreview the pastyear'sresults,determine
whatwe didwell andidentifyareasthatneedimprovement. Afterthe evaluationisfinished,the circle
iscomplete andthe processstarts overbydevelopinganew planforthe upcomingyear.
Conclusion:
Nothingincludedinthe Relationship AuditProcessisintendedtoreplace whatmayalreadybe
happeningbetweenourtwofirmsat the wholesaler,produce development,orservice level. Itis
anticipatedthatRAP will supplementandenhance theseotheractivities.
The ultimate successof thisprocessdependsonhow effectivelywe communicatewitheachother. By
establishinglong-term,multi-levelrelationships/partnershipswithcommongoalsandobjectives,we can
bothbecome stronger,more profitableorganizationsthatdeliversuperiorproductsandservicestothe
endcustomerwhile deliveringstrongfinancialresultsforourownersandshareholders.
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