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Why asset managers measure client behaviour

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why measure client behaviour

Welcome to the final blog in a series on the advantages of behavioural benchmarking and how it is a positive step forward for all.

In the first article, we examined how for most asset managers client experience (CX) has become THE reliable differentiator and why, to manage it, you need to measure it . In the second, we explained how CX is an ‘effect’ you ‘cause’ that occurs in two ways  – in what clients say (feedback), and what they do (behaviour) – why you need to track both, and how firms at the leading edge are doing this.

To complete the series, this blog will answer the question “why measure client behaviour” and explain how you can leverage a behavioural benchmark developed by leading asset managers to plug the gap that feedback leaves, save time and effort, and continually improve CX.

Why measure client behaviour? 

Plug the gap that feedback leaves 

Without behavioural data, you will have to rely solely on feedback data, but it will not give you a complete picture: humans forget things and feedback is selective – you select them, and they select whether to give their time to your request. Because of this, there will be gaps in your measurements and the remembered experiences of a few clients in the form of powerful anecdotes may not be representative.

In contrast, behaviour is general and universal, and you can measure it objectively, empirically, and holistically to determine whether your touchpoints are working the way you want. If you need to make any changes, you can then base your decisions on a valid, accurate, and reliable dataset.

Counteract the inaccuracies in feedback data

As we have learned, what humans do differs from what we say  so if you want to know your clients, look at their actions – they will tell you the true story.[1]

A key reason for this is our natural bias against giving negative feedback,[2] which in Accomplish’s opinion the B2B investment industry accentuates: careers move fluidly between clients and providers, and firms constrain employees’ ability to advocate and engage publicly. 

As a result, if you want a complete picture of your CX, there is no substitute for behavioural data: it is the essential complement to feedback responses and will protect you from taking the wrong action or operating under a false sense of security.

See the wood for the trees, and alleviate clients ‘survey fatigue’

Feedback requests are essential, but you need to use them judiciously because they interrupt clients at times that are not always convenient.

What if every asset manager relied on them? This is the current situation in the B2B investment industry and, in the words of one firm, “our clients are inundated with feedback requests.” This is not a good experience for clients, it risks skewing your data as some clients will ‘tune-out’, and it is no way to differentiate yourself.

In the words of Clay Shirky, “it’s not information overload – it’s filter failure.”

Thankfully, we now have the digital tools to observe and record behaviours without hassling clients.  This additional source of information allows you to ‘see the wood for the trees’ and means you no longer need to rely solely on client surveys.

This is a welcome development for clients because, frankly, it is your job to figure out how well you are meeting their needs, not theirs, and in the digital era, there’s no longer any excuse.

Predict, influence and continually improve client experience

Because you can measure behaviour as frequently as you like, you can build a high-resolution dataset of your effect on your clients, you can target your feedback requests with pinpoint accuracy and, in so doing, you can alleviate clients’ ‘survey fatigue’.

And because you can record repeat instances of the same activity you can turn your baseline measurements into a series. In Accomplish’s opinion, this is the point when your CX data starts to become an incalculably valuable asset.

Why? A series of data will give you three new valuable capabilities: you will be able to compare your direction of travel and pace against the industry (not just a snapshot), you will be able to predict and influence your clients’ behaviours to improve their experience, and you will be able to evaluate the success of your CX initiatives. What better way to demonstrate to your clients that you still care about them long after the sale? 

Save time and effort, plug the gap that feedback leaves, and compare your results

Save your firm the time and effort needed to develop a taxonomy of client behaviours and metrics by pulling the Helix© off the shelf. It is the best practice CX data taxonomy at the heart of the CX Touchpoint Benchmark developed by the leading firms. Leverage it.

Designed for asset managers by asset managers, the Helix© comprises well-defined target behaviours and metrics, and comes with on-demand support from Accomplish to turbo-charge your CX measurements and onboard your firm into the benchmark.

And because it is a common language in use across firms, you can compare your results against your direct peers regardless of your technology stack.

Benchmarking is about differentiation, and differentiation is about survival

If like most asset managers, your strategy includes differentiating yourself through CX, the only way to know you are achieving your desired effect is through benchmarking your CX.

This is because clients make relative choices and, without comparison, you simply will not know if the feedback that says “you’re good” is good enough.

For this reason, Accomplish is pleased to provide this much-needed behavioural benchmark to the asset management industry.

Follow Accomplish on LinkedIn

As a discipline, CX is still in its infancy. This is particularly the case in the context of B2B asset management. Accomplish is on a mission to change this with new tools that help asset managers stand-out from the crowd through the experience they give their clients.

This concludes a three-blog series on the advantages of behavioural benchmarking and how it is a welcome development for all.

Here is the full set so you can refer back to the others:

  1. Why asset managers should measure client experience
  2. How leading asset managers are measuring client experience
  3. Why measure client behaviour?

If you found this content interesting and would like to stay in touch with the topic, follow Accomplish on LinkedIn where we post frequently on CX in the B2B asset management industry.

1.FeldmanHall, et al, 2012. What we say and what we do: The relationship between real and hypothetical moral choices.

2.Tversky and Kahneman, 1974. Judgment under uncertainty – heuristics and biases.

Adam Grainger

Adam Grainger

Asset management CX specialist. 20-year career in the investment industry – from Transformation Director roles, to regional COO positions.