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A loyalty program that encourages right selling

Raghav Iyengar, EVP & Head - Retail and Institutional Business, ICICI Prudential MF

19th May 2016

In a nutshell

The enhanced ICICI Prudential Chairman's Circle program has a number of new features which encourage not just selling, but right selling.

Higher weightage for net sales over gross, recognition of AuM growth and retention, boosters for new PAN registrations and digital transactions and an all new "SIP Champions" program are some of the ways the new program encouraging right selling

Raghav takes us through the contours of the revamped program, including benefits like Child Scholarship Scheme, Brokerage Contribution Plan and an option to attend MDPs at the finest B-Schools in the country.

WF: The Chairman's Circle program has been launched in a new avatar for benefit advisors. What are some of the new initiatives that you are introducing in the program?

Raghav: The 'Chairman's Circle' program is a one-of-its-kind program that is designed to enable financial advisors and distributors to advance and grow the profession seamlessly. With these programs our financial advisors and channel partners will not only be able to expand their horizons and opportunities, but also deliver our high quality standards to investors. Under this program, we have three clubs- Solitaire, Platinum and Gold clubs.

For 2016-17, we introduced new initiatives across our various platforms for the benefit of our distributors like Management Development Programs (MDP) where by Financial Advisors and distributors in the Solitaire or Platinum Club can avail the benefit of attending a management development program in premier institute, which is a 2-3 day course geared to enhance professional careers. Such programs will be relevant for distributors and advisors in their day-to-day practice management.

Our yearly conventions will be packed with educational sessions, and panel discussions for the latest trends and information markets, macros, MF industry and more! Our senior management executives and investment experts will be present on the occasion to share key insights on investing. This event will translate into a learning take-away for attendees. For example, in last year's National Convention held at Hyderabad, we had invited Arunima Sinha, the first Indian Amputee to climb Mount Everest, as the key note speaker to share her story of courage and motivation.

We have also introduced a child scholarship scheme for our financial advisors to support their children's education, and enhance career opportunities. We believe that every deserving child should have access to higher education. Bright students need to have an opportunity to further their education and, therefore, students of Class X, XII or Graduation who have received 75% or more can apply for the scholarship. Of course, the amount of scholarship will vary depending on the status of the Financial Advisor's Club membership.

Additionally, we are introducing a Brokerage Contribution Plan where the AMC will contribute 5% of your net trail commission in select ICICI Prudential MF Plans.

WF: What are various ways in which an advisor can accumulate loyalty points for qualifying into the Chairman Circle clubs?

Raghav: In recognition of the vital work that our partners are doing, we offer three ways to accumulate points for qualifying into the Chairman Circle clubs. Firstly, partners can earn points on the regular business - Gross as well as Net Sales, of which the Net Sales holds double weightage.

Secondly, they can earn points on the AUM held with the AMC. This is to reward our financial advisors for the dedicated efforts and loyalty that they are putting in ensuring longevity of assets, so that investors benefit by staying invested. This is our step to promote long term investing.

Thirdly, there are certain additional boosters like points for digital transactions (through IPRUTOUCH), AUM & Gross Sales multipliers and points for New PAN registrations. By rewarding new PAN registrations, we intend to bring more and more investors into the fold of mutual fund investments.

WF: Your program rewards financial advisors for transactions through IPRUTOUCH - how would this initiative benefit the community?

Raghav: Technology can be effectively used to integrate all aspects of an advisor's business process. Integration of key processes, minimization of paper work and streamlining of the pre-sales activities become important ingredients of success in business.

In fact, more time spent on the core aspect of business generation and closure is bound to bring in more revenues. At ICICI Prudential AMC, IPRUTOUCH has been created to address this very need.

To make it smoother for investors, financial advisors can earn more points if the transaction is done through the IPRUTOUCH App. We also thought of increasing points for SIPs/ SIP TOP-UPs registered through IPRUTOUCH.

WF: What are the rationale behind the new "SIP Champions" segment of the Chairman's Circle program?

Raghav: As it's important to regularize and keep a long-term investment approach as a path towards successful wealth creation, we also have a new program "SIP Champions" to recognize the contribution by our financial advisors and distributors in acquiring and building SIP investors.

SIP is the most favorable tool to help investors build an investment corpus for long term while investing in Mutual Funds. It helps averaging out the returns, and inculcates investment discipline amongst investors.

We feel that with this initiative financial advisors will see the value in nudging new and old investors towards SIPs. The SIP Champions can also directly qualify for National Convention & International Conventions.

WF: In what ways is the program designed to not just encourage sales, but to encourage right selling?

Raghav: Our programs is designed to encourage long-term investing and nudge investors into making regular investments in the markets. We believe that this there is no better time for investors to be invested in the financial markets and that there is significant value to be had for long-term investors. It's a challenge to make investors see the long-term side of the financial markets a time when there is a lot of noise all around us. It's also an initiative to make investors take a positive view on financial assets, and make investors see the benefit of topping up their investments. Hence, with these initiatives our endeavor has been and will be create more value for distributors, and ultimately our investors.

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