The “celebrity effect”

This trend suggests it’s no longer enough to invite a client along to hear an interesting talk from a high-profile mutual fund portfolio manager or an investment guru. Today’s high net-worth clients want more: to be entertained by A-list celebrities they recognize from the worlds of entertainment, sports and politics.

“We live in a celebrity culture,” says Dan Richards, founder and CEO of Clientinsights in Toronto. “When it comes to creating excitement about a conference and motivating people to attend, being able to say, ‘We’re going to have a high-profile Olympic athlete or a former politician’ tends to give people the impetus to attend.

“Often these [celebrity] sessions,” Richards adds, “tend to be viewed as the highlights of conferences. They’re the thing people talk about.”

Previously, a seminar on RRSPs or mutual funds used to attract a crowd; now, people are more interested in hearing about topics of general interest. And many people are drawn more by fame than by investment strategies.

Gretzky spoke to more than 1,000 people at the MTS Centre in Winnipeg at an event sponsored by TD Waterhouse Canada Inc., the brokerage arm of Toronto-Dominion Bank. Gretzky didn’t talk about investments or retirement planning. Rather, he and Frank McKenna, former premier of New Brunswick and the bank’s chairman, chatted about Gretzky’s hockey career and the current state of that sport.

The discussion got more interesting when McKenna turned the microphone over to members of the audience, who grilled the “Great One” on topics such as the merits of year-round hockey for children and possible NHL expansion sites.

Strike a chord

The Gretzky event struck a chord with clients. James Allison, branch manager and vice president with TD Waterhouse in Winnipeg, organized the event. Allison began receiving emails from clients thanking him for their invitations soon after Gretzky left the stage.

(This was not the first time Allison has invited a sports star to talk to clients. He brought Toronto Blue Jays slugger José Bautista to a client event last year.)

Canadian Imperial Bank of Commerce (CIBC) recently hosted an event at which former U.S. Secretary of State Hillary Clinton spoke to an audience of 1,500 at the Shaw Conference Centre in Edmonton.

Victor Dodig, senior executive vice president and head of the bank’s wealth-management division, interviewed Clinton onstage following Clinton’s prepared remarks.

“People were thrilled to be a part of it,” says CIBC spokesman Kevin Dove. “It’s key having our executive on stage with her.”

The event provided a bonus, as well: beyond the live audience, the event generated national media coverage.

Large firms have the resources to organize client events in large venues and feature a high-profile guest. But how can an individual financial advisor get the same impact from a client event? Fees can run into the tens of thousands of dollars for top speakers, so it probably isn’t cost-efficient for you to shell out for a big-name celebrity on your own.

One way around such a prohibitive expense is to get a few advisors together to pool their resources and split the cost. This strategy can be effective, particularly when the advisors work for the same firm, says Charlie Spiring, senior vice president of National Bank Financial Ltd. (NBF), a subsidiary of National Bank of Canada, in Winnipeg.

Landing a high-profile speaker often is the result of shrewd planning. Spiring recommends scouting around for events coming through your town to see if there might be an opportunity to “piggyback” upon a celebrity event that’s already scheduled. For example, authors on book tours often are willing to speak to an audience at a modest price. Authors, he adds, are motivated to get in front of as many people as possible in an effort to sell books.

Whether the speaker is a well-known TV personality, a champion athlete or a best-selling author, client events such as these often succeed because they give the audience a unique experience in a live environment.

Most speakers have an agent who books their speeches, conferences and other appearances and who can be found online easily, says Theresa Beenken, CEO of the National Speakers Bureau in Toronto. “We find financial organizations might bring in an Olympian, such as rower Adam Kreek or curler Jennifer Jones,” Beenken says, “both of whom won Olympic gold medals.”

Appearances by Olympic athletes can be particularly effective, Beenken adds, especially if they bring their medals.

Fees range widely

Canadian speakers’ fees can range widely – from $5,000 to $30,000. Big names in the U.S. typically charge more, often up to $75,000. Canadian entrepreneur Kevin O’Leary of TV’s Shark Tank, is in the higher range. But other speakers, such as Randy Cass of the Business News Network, are more affordable.

So, if you can’t afford Gretzky or Clinton, whom does that leave? The following suggestions should give you an idea of the types of speakers you might consider:

– Physiology and experimental medicine expert Greg Wells, who hosted the “Olympic Super Bodies” television segments that aired on TSN during the 2010 Vancouver Olympics, talks about living a well-rounded life and achieving peak performance.

– Futurist Jesse Hirsh discusses current trends and issues that your clients should consider as they look toward the future.

– Former Canadian heavyweight champion boxer George Chuvalo. Chuvalo, 77, is probably as well known for his two tough battles with Muhammad Ali as he is for his story of personal tragedy. Chuvalo lost two sons to drug overdoses, and his first wife and another son to suicide. Chuvalo imparts a message about how precious life is and the perils of drug abuse. Chuvalo speaks at corporate events around the country and charges about $2,000 per appearance.

Choosing the right speaker is only part of the battle, according to Spiring.

“Sometimes you can run a good event but [have it] in the wrong place,” he says. “It’s shocking how not paying attention to details can screw you up.”

Selecting your venue can be crucial, depending upon your target audience. Many older people, for example, won’t get in their car if they have to pay for parking.

These older folks also are more likely to come out to see a speaker such as Chuvalo, who is a member of their generation, rather than some young, rising star.

NBF doesn’t have to look outside for a sports celebrity to regale its clients. Jones, who led Canada’s women’s curling team to a gold medal at the Sochi Olympic Games last winter, works as NBF’s in-house counsel. Says Spiring: “She’s our natural advantage.”

To capitalize upon the gold medal, Spiring has put Jones’ legal duties on the back burner while she flies the corporate flag as a speaker.

Close connection

NBF’s clients in Winnipeg, in particular, have followed the ups and downs of Jones’ career for many years and understand the game of curling. Those clients, Spiring adds, feel a close connection to success with Jones.

And every client who goes to one of Jones’ events gets to touch her gold medal and gets a picture taken with her.

Spiring says these events strengthen client loyalty: “They make people feel more attached to their broker. We’re in a day and age in which everybody wants to manage your money, so every tie you have to your client is good. It gives them one more reason to want to stay with you.”

Royal Bank of Canada (RBC) uses a curling connection with its clients, as well. One of Jones’ Sochi teammates, Jill Officer, is an “RBC Olympian” who appears at hospitality, sporting, cultural and casual events under the RBC banner.

“We often turn to high-profile individuals who share in our passion for particular causes,” says Robb Ritchie, RBC’s manager of public affairs for Manitoba, Saskatchewan and northwestern Ontario in Winnipeg. “We enjoy focusing on creating unique experiences for clients through events and access to well-known individuals.”

At an RBC event launching its partnership with international charity Free The Children last year, the bank hosted actor Martin Sheen, who also attended an RBC client event in Waterloo, Ont. The bank also has teamed up with American environmental activist Robert Kennedy Jr. and rockers The Tragically Hip through the RBC Blue Water Project and other environmental initiatives.

Ritchie says the bank has benefited from these events through increased business from existing clients, referrals and a greater appreciation for the bank’s brand, as well as greater awareness for the causes, organizations and events RBC supports.

At a more homegrown level, CIBC has garnered interest from its clients through a partnership with Scott McGillivray, host of HGTV’s Flipping the Block home- renovation show.

Renovation expert

McGillivray, an expert in home renovations, real estate and finance, is appealing to many young clients because he provides advice on purchasing and renovating homes. He went on a CIBC-sponsored tour of 10 cities across the country, talking about what he has learned about building a house, financing it and renovating it.

“We were oversubscribed,” McGillivray says. “We were just blown away by how many people were coming out. It’s probably the biggest thing we’ve ever done.”

While McGillivray’s talks are packed with relevant advice, other events place more emphasis upon the speaker’s fame. Richards describes these celebrity events as “performances” more than anything else. Either way, they generate interest.

Derrick Coupland, partner with Winnipeg-based marketing company Blacksheep Strategy Inc., confirms that events featuring high-profile speakers are an effective way to build relationships with your clients. This is particularly important today, because most clients invest a significant proportion of their investible assets with a single advisor.

“It’s hard for the client to know with certainty that they couldn’t do better elsewhere,” Coupland says. “You want to give them every reason not to bother looking.”

Events such as these, Coupland adds, can be even more powerful outside of major markets, such as Toronto or Montreal, where celebrity traffic is relatively sparse.

Client events featuring high-profile speakers should not be viewed as activities that will generate a measurable return on investment. Rather, Richards says, “They’re brand-building and they generate goodwill.”

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