PC-B Private Client Playbook

PC-B Private Client Playbook

A QUICK GUIDE TO IDENTIFYING AND CONVERTING PRIVATE CLIENT PROSPECTS PRIVATE CLIENT PLAYBOOK

Wealth | Investments | Planning Commerce Trust Company

STRENGTHENING RELATIONSHIPS

Client Focus + Company Growth

As a Relationship Manager, you understand the importance of focusing on the needs and goals of your customers. We also know the more needs we satisfy, the better our retention and ultimately the growth of our business.

Commerce Trust Company serves over 14,000 households, each with their own unique story and goals.

You don’t need in-depth knowledge of Wealth Management products and services to make a difference. All it takes is the ability to recognize people’s needs, the desire to help and the initiative to ask a few questions. We’ll take it from there and commit to delivering outstanding service that will only strengthen your existing customer relationships. Your referrals are very important to us and instrumental to the overall success of Commerce Bank. Once again, thank you for your continued partnership.

Sincerely,

John Handy

President and Chief Executive Officer Commerce Trust Company

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THE OPPORTUNITY

Target Client Profile

Our clients typically look more like the millionaire next door. Wealth that’s not extravagant, built on a conservative approach to spending and investing while living well within their means. While it can be difficult to identify wealth from appearance and lifestyle alone, there are some obvious characteristics to look for such as account size, occupation and “signals” that may come up in a conversation (see page 8 for examples). TARGET CLIENT PROFILE To qualify as a Private Client opportunity, a client must hold $500K or more in investable assets. Below is a demographic representation of our current client base that may be helpful when identifying referral opportunities. AGE INCOME INVESTED ASSETS 59 Years Old $500,000 $2.0M Occupation: The majority of our customers are self-employed business owners, executive-level leaders (C-Level), medical professionals, attorneys and real estate developers. Engagement Level: The majority of clients are engaged Delegators who prefer to work with their Wealth Advisor by delegating decisions according to the advisor’s recommendations. Communication Style: When in-person conversations are not possible, our clients prefer the convenience and interaction of a phone call. Digital and print communications are more acceptable for account alerts, investment news and performance detail.

COMMERCE TRUST COMPANY SERVICE LEVELS BROKERAGE Investment Services $100K-$500K PRIVATE CLIENT Wealth Management Team $500K-$25M FAMILY OFFICE Wealth Management Team + Family Office Strategic Advisor Greater Than $25M 3

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THE PURPOSE

Building Loyalty + Deeper Relationships

Our customers expect us to meet as many of their financial needs as possible. The more needs we can satisfy, the more loyal they become, which in turn results in more profitability and growth. Many competitors, such as Wells Fargo, Bank of America and US Bank, also offer a full-range of financial services and are aggressively trying to deepen their customer relationships too. If we don’t attempt to fully serve all of our customer’s needs, we may find ourselves displaced as a result of an even deeper relationship with a competitor.

Building a deeper client relationship INCREASES the likelihood for LOYALTY and DECREASES ATTRITION. Industry research shows companies that are LOYALTY LEADERS see a 10% HIGHER GROWTH rate than their competitors.

As customer satisfaction increases, they are SIX TIMES MORE LIKELY TO REFER Commerce to FRIENDS AND FAMILY than detractors.

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THE VALUE PROPOSITION

What We Do + How We Deliver

For high net worth individuals who are looking to simplify their complex financial life, Commerce Trust Company provides a FULL-SERVICE APPROACH to wealth management. With a proactive team who takes the time to understand both your PERSONAL AND FINANCIAL GOALS , Commerce Trust develops a CUSTOMIZED PLAN and investment strategy to achieve your vision of success. With Commerce Trust, you can feel confident and secure about your family’s future.

HOW WE DELIVER We offer custom investment portfolios built by objective, trusted advisors who are not selling products. We have over 500 experienced, professional staff who deliver integrated services beyond money management, including private banking, financial planning, tax services, family business consulting, estate planning and more. We exceed client expectations and develop lasting relationships for generations as evidenced by industry leading client satisfaction scores and exceptional client retention rates.

We are up front and clear about advisor compensation. No hidden fees.

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THE CUSTOMER EXPERIENCE

Team Approach + Relationship Flow

Ensuring a positive experience for your valued customer is our first priority. Rest assured you will be the main point of contact for your customer and involved in the entire process. We understand the importance of looking at the big picture and considering how one decision impacts other areas of their financial life.

IN-HOUSE SPECIALISTS Commerce Trust Company includes in-house specialists who provide comprehensive wealth management solutions, including: FINANCIAL PLANNING  Retirement and estate planning  Education planning  Life insurance needs analysis

INVESTMENT MANAGEMENT  Tax-efficient investing

CLIENT DELIVERY MODEL

 Asset allocation and diversification  Real estate alternative investments PRIVATE BANKING  Mortgage and home equity financing  Margin lines of credit  Aircraft, marine and vacation home financing TRUST AND ESTATE SERVICES  Trust and probate administration  Charitable trusts

Designed to help customers define and prioritize their goals. CTC will then create a customized plan to achieve those goals.

 Family foundation management  Tax compliance and reporting

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THE CUSTOMER EXPERIENCE

Team Approach + Relationship Flow

RELATIONSHIP FLOWCHART How we work together on behalf of the customer.

CTC REFERRAL PROCESS Details the steps in the referral process and who is involved at various stages.

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THE REFERRAL

Identifying Leads + Conversation Starters

HOT SIGNALS Below are a few common situations that may trigger a conversation regarding their personal wealth.  Retirement  Sold business, home or land  Death of parent  Change in marital status  Change in job  Receipt of a large settlement or inheritance  Change in health  Dissatisfaction with personal wealth investment performance with competitor

There are different types of signals a customer may give to help you identify a quality referral. Recognizing people’s needs, having the desire to help, and then, based upon the circumstances that you have uncovered, asking a few key questions. Customers don’t necessarily bucket their financial services needs as we do within our organizational structure. The lines between personal and business financial matters can be blurred. An executive of a successful business may have concerns about being too concentrated on his or her own company’s stock, about tax deferred compensation issues or finding himself or herself facing an investment decision from a large cash bonus. A business owner may find himself or herself accumulating cash and no longer desire to invest as much in the business, or may be undertaking a succession/transition plan resulting in cash from equity.

 Mention of the complexity of their financial needs and keeping track of everything

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THE REFERRAL

Identifying Leads + Conversation Starters

CONVERSATION STARTERS  We’ve worked together for a while on your business needs but haven’t discussed how it aligns with your overall financial picture. Do you have a plan in place that I can help update? Perhaps I can introduce you to one of our planning specialists with Commerce Trust to make sure you have a comprehensive plan that represents both your business and personal goals.  We spend a lot of time talking about lending needs for your business; I wanted to make sure you were aware that Commerce offers comprehensive planning for both sides of your balance sheet through Commerce Trust, the Investment and Wealth Planning division of Commerce Bank. We help align personal and business goals for clients just like you. I’d be happy to set up an introduction to either take a second look at your current plan or build a customized one with you.

RESPONSES TO OBJECTIONS  Although you have a personal financial advisor already, it wouldn’t hurt to have a second opinion on whether or not your portfolio is aligned properly to meet your goals. As a current customer of Commerce, we can do that for you at no cost and without any further obligation. And you can choose to do whatever you wish with the assessment.   It’s always good practice to review an existing Will, Trust and Estate Plan every few years to ensure it’s updated as things in your life change. As a current customer of Commerce, we can do that for you at no cost and without any further obligation .

PROBING QUESTIONS TO ASK

 How do you currently invest today?

 Do you enjoy making your own investment decisions?

  Are you pleased with how well your investments have performed?

 How long has it been since your Will, Trust or Estate Plan has been updated?

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THE INCENTIVE

Additional Income

DON’T FORGET, THERE’S A SIGNIFICANT OPPORTUNITY TO EARN ADDITIONAL INCOME FROM ASSET MANAGEMENT REFERRALS TOO. YOU’LL RECEIVE REFERRAL INCENTIVES BASED ON FEES COLLECTED IN THE FIRST YEAR.

Here’s an example of what that may mean for you:

Client A moves over $750,000 in managed assets. You’ll receive 15% of fees collected in the first year. Your referral incentive = $1,125

Client B has a liquidity event and moves over $10,000,000 to be invested. You’ll receive 15% of fees collected in the first year. Your referral incentive = $9,075

Please contact your Sales Manager or a Commerce Trust Wealth Management Consultant for any questions or additional detail about referral incentives.

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MARKETING RESOURCES

Popular Pieces + How to Order

OUR MOST POPULAR MARKETING COLLATERAL TO INTRODUCE COMMERCE TRUST TO PROSPECTS.

CAPABILITIES BROCHURE KIT PC1217 Overview of CTC capabilities in three panel folder

SOLUTIONS BROCHURE PC1218 Collection of CTC services and solutions in one packet

ADVICE you can TRUST

OUR SOLUTIONS

Wealth | Investments | Planning CommerceTrustCompany

Wealth | Investments | Planning CommerceTrustCompany

Visit https://iconnect/sites/ctc/CTCMarketing to access the Marketing Library where you can view, download, email, and print all available marketing and educational collateral to share with prospects.

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OUR COMMITMENT TO YOU

Quick response times for you and your customers (within 24 hours) Keep you informed with conversations and update customer contact records as needed Simple and easy to understand advice Simple and easy to understand pricing structure Value-added thought leadership content provided to customers on a regular basis

Wealth | Investments | Planning Commerce Trust Company

1-855-295-7821 | commercetrustcompany.com NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE

Commerce Trust Company is a division of Commerce Bank. © 2017 Commerce Bancshares, Inc.