The most cost-effective business intelligence on the market?
Now is a time for informed business planning
Volatile investment markets have increased the risk that macro movements cut asset managers’ revenues.
But like ships on rough seas, asset managers must navigate the peaks and troughs. As a result, now more than ever is a time for informed and flexible business planning – not for guesswork.
So, if you are involved in planning for 2023, you will need the best information and frequent updates in case you need to adjust your direction.
Your BI is your SatNav
Almost every minute of every day, someone in your company is making a decision that will contribute to the future course your company will take. Some choices are big and some small, but they all combine to drive your company’s direction.
A good decision can make all the difference, for example, choosing which RFPs merit the money and effort needed to respond.
How will you decide?
- Perhaps you will consider your latest RFP success rate, whether it differs by asset class or client type, and whether responding might create an opportunity cost elsewhere.
- Or maybe you will remember what you did last time, add some ‘gut instinct’, and cross your fingers as you either go for the RFP or not.
We all make some decisions without basing them on good information. They are just less informed.
However, if you were on a ship in a storm, how comfortable would you be if the navigator shunned the SatNav in favour of gut instinct and crossed fingers? It is the same inside asset management firms, just less wet.
Cost-effective business intelligence
BI is information about yesterday and today that you use to make decisions about tomorrow. But what makes one piece of BI more effective than another? The textbook answer is that the ‘best practice’ is timely, accurate, valuable, and actionable.
To assess the Behavioral Benchmark’s effectiveness as a BI tool, in the table below we have compared its features against the characteristics of ‘best practice’.
To help you assess its cost-effectiveness, we have indicated the features we provide for free to all participating firms and the ones we reserve for our premium clients.
|Best practice BI||Features of the Behavioral Benchmark||Benefit to you||Premium service?||Free service?|
|Accurate||✓ A central taxonomy of best practice metrics ensures consistent calculation.||- Pull the Helix© taxonomy off the shelf and start measuring immediately. |
- Facilitates the adoption of a ‘measurement culture’.
- Assurance that peer-group comparisons are like-for-like.
|✓ Select the leading and lagging indicators that reflect your strategy.||- Articulate your strategy in terms of the measurable behaviors you aim to stimulate in your clients. |
- Align (and re-align) your measurements with your goals.
|✓ Independent data quality checks identify errors.||- Only clean data enters the benchmark. |
- Gain confidence in your data.
|Timely||✓ Quarterly.||- Frequent enough to help you see trends and adjust accordingly.|
- Not so often that measuring precludes getting work done.
|Valuable||✓ End-to-end client journeys.||See your effect on your clients’ behavior.||✓||✓|
|✓ Clients segments – institutional & intermediary relationships.||- Adjust your business plan to behavioral differences between segments. |
- Subsets: mainstream institutional vs. insurance; advisory vs. wholesale.
|✓ Americas, EMEA, & Apac.||Align with regional differences in client behavior & industry-wide norms.||All||1 region|
|✓ Competitors (anonymized).||Compare against your peers at a point in time – average, highest, & lowest.||✓||✓|
|✓ User Group membership||- Peer-group discussions are fuelled by consistently gathered data.|
- Explore best practices in a safe environment.
- Shape the benchmark’s future.
|✓ Every metric has its own time series.||- See trends over time.|
- Forecast your future effect on client behavior.
- Explore relationships between metrics.
|Actionable||✓ Bespoke dashboard and visualisations.||If you like the effect you had on clients, keep going or do more. If not, change.||✓||✓|
|✓ Independent observations and hypotheses.||We will draw attention to any areas that stand out – for good or bad.||✓||✓|
|✓ Now being used to solve real-world problems.||Case studies include: |
- Aligning BI with business planning.
- Fixing a broken sales funnel.
- Addressing a lack of BI.
- Choosing strategic initiatives.
|✓ Explore the data yourself.||Perform your own analytics on our Power BI platform.||✓||✓|
|✓ Feed behavioral benchmark data into your BI system.||Aggregating behavioral data with the rest of your BI will further strengthen your decision-making.||✓||✓|
Many decisions are trade-offs
Whether you base your decisions on science or instinct, they will often be trade-offs between the costs and benefits of different options. And because resources are limited, our decisions involve allocating them to the choice we expect to be the most cost-effective.
For example, will your marketing campaign be more successful with one big client event or multiple smaller ones? Did you respond to that RFP or not? And, if you win the client, what services tier will you lead them to expect?
Choosing what to include in your suite of BI is no different.
What will be your BI trade-off?
Are the benefits of the Behavioral Benchmark attractive to you? If so, that creates a case to be explored.
Are the costs justifiable? What are your alternatives?
We believe the Behavioral Benchmark is a compelling proposition for asset managers as they prepare to navigate rough seas.
What do you think? Have we created the most cost-effective business intelligence on the market?
Could you justify taking the Behavioral Benchmark with you on your voyage through rough seas ahead?