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.
This past Tuesday May 22, kasina hosted the Internal/Hybrid roundtable, focused on the needs and issues of internal and hybrid wholesaling executives. We had representation from firms of all sizes and structures. Large and small, there was consensus and passion regarding where internal wholesaling was heading and the potential these teams had to play a role in defining their firms’ success. Some of the key things we learned were:Firms use hybrids, but don’t call them that
Hybrid wholesaling is still seen as a way for firms to augment their traditional internal and external teams to address key needs. Just don’t call them hybrids. The nature, title and focus of these teams varied greatly but the consensus from those that had them, was that they were profitable for the firm.2:1 is the new black
Forget 1:1 ratios – firms are starting to think about moving to a 2:1 coverage model. As one executive noted:... [read more]
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]
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]