Buying a large competitor left an insurance company with many post-merger problems – including the complex challenge of getting two very different sales teams to come together and work as one.
While the acquirer’s in house sales team was very internally focused, the target’s sales force had always relied heavily on a much more commission-based and independent model.
Enter KPMG’s FS M&A experts, who proposed splitting the market into distinctly different audiences – then developing distribution channels and products designed specifically for each one.
Explains the KPMG partner who led the engagement: “Customers wanting detailed investment advice generally need a much higher level of service and a wider range of funds than those looking simple for a good deal on a mortgage or a safe pension investment.
“So we developed a very flexible framework that allowed the sales advisors to give the high level of service that some customers demanded – while encouraging them to channel suitable investments into the parent company’s own managed funds, where security rather than independence was the priority.
“This approach was founded on a longer term goal of developing all the advisors’ skills, market knowledge and profitability – so that the distinctions between the two teams began less important than the quality of the service each advisor offered. Fundamentally, our idea was based on the premise that if you develop a properly motivated and incentivized salesforce with the right mix of skills, then concerns on the part of an individual advisor about which company he or she originally worked with will fall away as that advisor competes for new business.”