To provide our clients with high quality tailored consulting and research, we need to know the financial services industry and our clients. To build lasting and profitable relationships, we dedicate ourselves to staying not just current on, but ahead of industry trends. This blog is intended to share our industry insights and, at the same time, to capture feedback from our readers.
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Data Mining Lessons from Pharma for Asset Managers
Pharmaceutical industry practices in sales and marketing have long been a harbinger of what is to come in asset management. As we wrote in a recent study on Progressing from Analytics to Action for Data-Driven Firms, pharma has made notable strides in adopting a data-driven approach but it was not by choice and did not come easily. That theme is echoed in the New York Times on drug makers’ use of prescription and patient data to provide information customized to physicians’ needs and improve patient outcomes.
Just as pharma reps are finding it more difficult to get meetings with physicians, wholesalers are having to work harder to get meetings with financial advisors. Just as best-selling drugs have lost their patent protection, mutual funds are perceived as highly commoditized products. Drug companies are using data to rank physicians based on their patient base, their connections, their product use and more. That... [read more]
Gaining Advantage with Predictive Analytics
At a mid-size firm using a predictive analytics tool to identify cross- and up-sell opportunities, the results in incremental sales lift have been compelling. When internals are able to have contact with leads identified by the tool, the average incremental sales lift is 1.5 – 2 times that of leads identified through traditional methods. The lift grows to 2-3 times on average when wholesalers are able to get a meeting. “Why wouldn’t someone want a list of names like that?” the head of distribution for the firm asked. Indeed.
Early Adopters Get an Edge
Yet interviews conducted for a new study on Increasing Business Impact with Predictive Analytics reveal that very few asset managers and insurers are using predictive analytics tools. The early adopters are looking for efficiencies in their contact with customers. They want to their wholesalers to have more impactful contact with advisors. They view predictive analytics solutions as... [read more]