29th January 2014

Aegon: To bundle or not to bundle

In our busy modern lives consumers are looking for ease of purchase and less complexity in their buying habits. The buzz word of the moment is bundled.

This is evident in our technology, entertainment and home contents and buildings insurance. This bundling, or offering a wide variety of services in one place, has even encroached into our hobbies where sports clubs have become communities offering products and services to their supporters.  Now it’s not just a season ticket you purchase, its online streaming, leisurewear and even holidays all through your relationship with your club.

This trend is also evolving in financial services where many clients wish to have their legal, accounting and financial affairs bundled to make sure they have a ready overview of their current situation and a clear path way identified for future financial goals.

Whilst common place in many other nations, most notably North America, this bundled approach has long been the domain of the banks in the UK with few advisory businesses adopting this approach. However, with the dramatic events of the last few years and the demise of the bank advisory market place, is this now an opportunity for advisory businesses to establish the alliances that are required to offer a bundled proposition for all their clients or even for their most valued clients?
A bundled service proposition is dependent on close and long lasting relationships with other business professionals such as lawyers, accountants, estate agents, surveyors and pay roll specialists.

In fact the entrepreneurial among you will have realised by now that in reality a bundled proposition is only limited by your imagination and desire to forge alliances. My view would be the proposition should be built from the bottom up and the clever business will always ask the client what additional products or services would they value from their relationship with the adviser.

My questions to every business involved in our profession would be:

• What additional products and services do you offer clients?
• How do you communicate these?
• How do you ensure you receive a profitable premium for the work and promotion involved?

Networking is key. Do you have a true partnership established with other business professionals and suppliers?
Does this partnership reward both parties and more importantly does this provide profit for both businesses whilst delivering a satisfying service for your clients?

If you don't have the relationships in place to offer a broader service proposition for your clients, and it's something they desire, then it would be wise for you to develop a business to business marketing plan where you can identify what your clients want in terms of additional services.

• What existing relationships can provide these?
• What new alliances do you have to establish?
• What will you charge for these services?
• Who will you offer then to?
• How will you communicate them?
• How do you ensure long term delivery?

The next time you pick up the mail off the matt, have a look at the bundled offers being promote to you and have a think of the offers your clients will receive. Can you now deliver the bundled service of the future?

More infomation

John Joe McGinley
Head of Business Brain, Aegon
January 2014

Business Development