Mutual of America - Viable Strategies
The most viable strategies for Mutual of America to double its revenue (Assets Under Management) in a four to five-year period are its investment strategies, its partnership with Salesforce, the implementation of its Innovation Committee, and its social media initiative. Below is an overview of the findings.
Mutual of America's Most Feasible Strategies
1. Investment Strategies
- The General Account of Mutual of America employs a sensible and disciplined investment strategy that is aimed at achieving a maximum total return within a tolerable risk level. Its policy stresses "capital adequacy, investing in high-quality assets, liquidity, and properly matching assets and liabilities." This strategy has placed the company among the top life insurance companies in the U.S., as has been confirmed by independent rating agencies such as A.M. Best, S&P Global, and Fitch.
- Around 60% of the total assets "are invested in the 500 common stocks included in the S&P 500® Index to replicate the weightings of such stocks in the Index with respect to that 60% of the Fund’s total assets" to the extent practicable. While "approximately 40% of the total assets are actively managed by the Adviser, with approximately 20% of the total assets invested in large and mid-cap growth and value stocks, approximately 10% invested in small-cap growth stocks and approximately 10% in small-cap value stocks."
2. Partnership with Salesforce
- Mutual of America partnered with Salesforce to further strengthen its commitment to customer service. This partnership should help the company attract, engage, and retain customers in new and innovative ways.
- In 2018, Mutual of America and Salesforce partnered up with the aim of implementing a cloud-based customer relationship management (CRM) system in 2019. Salesforce will enable Mutual of America to streamline and customize its business processes and become more efficient. It will also affect the way its sales team functions as they will be able to connect better with prospects and customers, anticipate and understand the unique needs of the customer, and consequently create new opportunities.
3. Forming of Innovation Committee
- Mutual of America formed an Innovation Committee. This committee aims to stimulate the employees to question the assumptions they have about the business and ask a fundamental but powerful question: How can we improve?
- Mutual of America will continue to focus on new ways to improve its workflows, strengthen its products and services, and improve the relationship it has with its customers.
- The results of this exercise will help the company discover new opportunities to increase its strengths, win the trust of prospective customers, and provide more retirement plans to plan sponsors and participants across the U.S.
4. Social Media Initiative
- Mutual of America has launched social media pages on Facebook, Twitter, and LinkedIn. These pages will provide information to its customers, which approach half-a-million in number and vary from millennials to working parents to those who are almost or already retired, and to the public. The information should motivate people to contemplate and plan for a financially secure future.
- Its pages will speak to various key corporate objectives such as "raising public awareness of the company, broadening engagement with its customers and prospects beyond traditional platforms, enhancing the promotion of its products and services, and further strengthening its employee recruitment efforts."