New World Busier Than Ever For Funds Management Business Development Managers
After canvassing dozens of business development managers across funds management about how COVID-19 has changed the way they do business, I am happy to report that even though BDMs have had to dramatically adapt from face-to-face selling styles, the overall sentiment is positive and optimistic.
While some BDMs are actively unlocking new business, others are focussed on nurturing existing relationships, and BDMs across the board report they are busier than ever.
It is worth mentioning that BDMs who are not currently working, are however finding it tough as many organisations have placed hiring processes on hold for this job function due to reduced sales and protracted sales cycles. We anticipate this will be short-lived, as restrictions ease.
In this article, I outline how BDMs have adjusted to relationship building, client preferences, technology, KPIs, what the future holds and general advice from top BDMs.
How have BDMs adjusted during COVID-19 lockdown?
Successful BDMs are making a shift towards “over-communication”, increasing contact time through phone and video. Posting content on social media once a week, rather than once a month, having monthly phone calls with clients and providing monthly updates on performance.
Some BDMs faced up to three weeks without direct contact with clients. It has been essential to find new ways of building relationships, ramping up on emails and even doing podcasts.
Many BDMs and firms share the view that now is not the time to be selling. Now is the time to check in with clients and make sure they are okay, to show empathy and understanding.
By contrast, other BDMs are still unlocking new business. They are focused on finding the right solutions to help clients with a “what’s in it for them” approach and looking for gaps in portfolios; for instance, they may want downside protection in volatility. Clients have been welcoming to this.
BDMs have been working alongside marketing and communication departments to educate their clients.
They are trying to figure out their clients’ pain points, and innovating solutions/products accordingly.
How are BDMs using technology?
BDMs typically prefer being on the road connecting with clients and closing deals in person. With that option unavailable, telephone seems to be the clear preference for the majority of clients. Unless preferred, video calls are being utilised for more substantial purposes. Screen sharing via video conferencing has become a valuable tool when sharing information and works well for in-depth tasks such as portfolio construction.
Have KPIs changed during this period?
KPIs across the board have either remained the same or increased. With face-to-face meetings not possible and travelling time suddenly available for other tasks, many BDMs are busier than ever.
Businesses have increased KPIs for phone conversations. One fund manager, in particular, has made the number of video calls a new KPI. For retail BDMs, good activity can be considered as five quality, meaningful conversations per day of 30 to 45 minutes.
On the other hand, highly results-driven organisations are more outcome-focussed. They are less concerned about the number of contact points, as long as business is being won.
The future BDM professional
When in-person meetings are not possible, the fundamental skill of building relationships becomes more important than ever. Clients tend to remain loyal to BDMs that provide value, are trustworthy and generally liked. Putting relationships over sales has never been more crucial.
Equally as important, is having precise alignment on clients’ needs and service provided. This involves taking the time to listen and understanding the situation at hand.
For institutional BDMs, face-to-face meetings may certainly become rarer. Clients may not want to see external people face-to-face or may not be able to due to strict company guidelines. Retail BDMs generally have more flexibility and control around their decisions.
The shift towards technology and how it can work with interstate travel has been truly tested during COVID-19. Learning the skill of how to consult, persuade and sell over technology will go a long way.
BDMs have reported getting agreements back from interstate clients during the lockdown, without ever physically shaking hands. Not only does this keep costs down which employers are happy about, it also allows BDMs to explore using lunches and dinners as rewards rather than the ways to build business.
Advice and best practice shared by top BDMs
- Service clients how they want to be serviced.
Time is money. Some clients may prefer a 20-minute video or phone call rather than a 45-minute face-to-face. Take note and remember their preference. - BDMs should be busier than ever during times of uncertainty.
You don’t want to build a name as someone who only calls when things are good. - Relationships over sales is crucial.
Focus on building relationships and consulting. Learn the nuances of persuading and selling over technology. - Knowledge is key.
Catch up with product development managers to understand their product. - Be strong on competitor analysis.
It’s great to know your own products, but even better when you understand what competitors are offering.
Although we have recently come across one BDM that has been made redundant, we are seeing BDMs remain secure in their role with no mention of a reduction in hours or salary. For further detail on current salaries, please see our most recent salary guide for BDMS.
Kaizen Recruitment specialises financial services recruitment across funds management, wealth management, superannuation, investment consulting and insurance. We are based in Melbourne and Sydney. For assistance or further information please telephone our office at +61 3 9095 7157 or submit an online form.
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