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CX data – the essential raw material

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Insight into clients’ needs enables asset managers to differentiate themselves, and to support their profitability twice

Recent studies have demonstrated that, on average, the buy-side sector is losing pace with its clients’ needs. This creates an opportunity to secure competitive advantage through CX over those who may be slow to respond.

To seize it, asset managers need clear insight into their clients’ needs. With this knowledge they can segment their clients effectively, and organise themselves internally to meet the different needs of different clients.

Prioritising clients’ needs is the way to ensuring your firm gives the best possible client experience (CX). This is important because:

  1. In an over-supplied market where CX has become the only reliable way for asset managers to differentiate themselves, a favourable CX has become imperative.
  2. For good or bad, CX impacts profitability twice: an intuitive, coherent and efficient client journey  will contribute to longer and deeper relationships (protecting your gross profits), and it will minimise the complexity that drives operational costs and risks (defending your net profits).

To repeat, the goals are differentiation and profitability. CX is the way to achieve them. 

Firms’ starting points will differ, but their goals and the raw materials they need will be the same

For sure, CX is all about clients. But you won’t get off the starting blocks without the essential raw material: CX data and analytics into their needs.

To stand a chance of seizing the opportunity, asset managers should first ensure they have both up to date CX data and a fit-for-purpose segmentation model.

Looking first at CX data, a firm simply cannot be confident that a client journey (and all its component activities from contracting to billing) will meet its clients’ needs unless it understands them. For example, how have needs changed between different asset classes, product vehicles and types of clients, what are their preferences, what do they want to do with the information you send them, and so on?

Turning to segmentation, a ‘fit-for-purpose’ segmentation model must meet the needs of both constituents: the asset manager, and the client (plus any advisers that represent them). Therefore, a segmentation model can only be effective if it is driven by factors that reflect both the nature and complexity of clients’ needs as well as the asset manager’s own business objectives. 

How Accomplish helps asset managers to gain valuable insights into their clients’ needs

Accomplish helps firms achieve this by ensuring that, no matter how far they want to develop their CX data analytics capability, they can move fast at the start. We do this by working with them to define, clean and consolidate their CX data, as well as interrogating it to release insights into their clients’ needs.

How do we do this? 

A sustainable CX data analytics capability enables assets mangers to identify changes in client needs over time, allowing the firm to adjust the offering as appropriate. This creates the conditions for asset managers to use predictive analytics to forecast the implications of changing client behaviours across entire segments and secure competitive advantage through CX.

Placing CX data analytics and segmentation in context

Once firms have clear insight into their clients’ needs, they should define an overall CX strategy for meeting them, and then implement it via an intuitive, coherent and efficient client journey.

We look forward to addressing these topics next in this blog series. 

secure competitive advantage through CX
Adam Grainger

Adam Grainger

A broad mix of experiences in the investment industry – from senior manager and Transformation Director roles, to regional and global COO positions.