Doing SIP drive has now become a regular practice among distribution community. Thanks to motivational articles published on Cafemutual and digital transaction platforms, the number of MFDs doing SIPs has increased substantially. In fact, Cafemutual has covered 92 stories on successful SIP drives last year. The actual number is much higher at individual MFD level as we have covered at least two distributors in one story.
Of late, we have been receiving multiple queries from MFDs/RIAs on how can they conduct their SIP drives successfully. Based on our analysis of successful SIP drives, here are 5 simple yet effective tips to conduct SIP drive successfully:
Clearly defined objective
SIP drives with a particular theme or objective have done better. MFDs may consider doing SIP drive based on themes like retirement, children education, financial independence and so on. Another way to do SIP drive is targeting specific investor categories like women, millennials.
While investors find comfort in doing SIPs to achieve a particular financial goal, MFDs can prepare a uniform communication strategy to get better response.
Avoid doing SIP drives on your birthdays or anniversaries as many clients may not find reason to do SIPs just because it is an important day for you.
Target existing clients first
MFDs who targeted their existing client base have done well in their SIP drives. You can analyze your existing client base to find opportunities. You may look at targeting not so active clients, clients who have invested through lumpsum with you and clients who have not added or increased their SIPs over the last two-three years. This will help you increase wallet share from existing clients.
Ideally, you should not acquire new clients during SIP drives. A new client needs your time and attention for healthy long-term relationship.
The pitch
Most importantly, your pitch should address concerns or goals of investors like creating regular income post retirement or funding education expenses of children.
Avoid bombarding investors with charts and numbers. Instead, use metaphors and real-life examples to make the SIP explanation interesting and unforgettable for them. Remember that if you appeal to people’s logic, you stimulate them to think. However, when you appeal to their emotion you stimulate them to act.
You may also look at sharing testimonials of your clients who have achieved financial goals through disciplined investment.
Follow ups
Schedule a follow up meeting or call right at the first meeting. During follow ups, you can address their concerns or queries. You may use this opportunity to again speak to them about benefits of disciplined investments in mutual funds through SIPs.
Thank you note
It is always better to thank clients post your SIP drive. You may simply send a thank you note on WhatsApp for their participation. As a gesture, you may look at gifting some goodies like plants as a remembrance.
Other hygiene factors:
- Do not conduct fund or scheme specific SIP drives
- Do not divide SIP amount into multiple schemes to achieve higher number
- Follow one client one SIP policy
