Best practices for brokerage firm FAs and managers

November 23, 2020

Quantifying the opportunity and creating client treatment groups

Brokerage firm FAs and managers need to determine which clients hold the most potential in order to allocate time wisely

CHALLENGE:

Brokerage firm FAs and branch managers want to identify which clients hold the most financial potential

The firm and its FAs knew what financial products and balances its clients held with them, but did not have a way to quantify clients’ total potential, resulting in missed opportunities

The firm wanted to:

  • Better grasp the total financial opportunity held by its clients

  • Help FAs segment their books of business and spend the most energy on high opportunity clients

SOLUTION: 

The brokerage firm can utilize WealthComplete® household total assets estimates to gauge opportunity and identify high potential clients

By using WealthComplete, total assets estimates, the firm was able to: 

  • GAUGE the total opportunity and its share of wallet for its entire customer base

  • SEGMENT each FA’s book of business using a Client Action Planner report and identify high growth potential “Develop” clients – households that have a less than average balance at the firm, but likely have high total investable assets

RESULTS: FAs use WealthComplete total assets estimates to segment book and identify millions of dollars of hidden assets within client-base

The firm DEVELOPED TREATMENT GROUPS based on clients’ assets at the firm and total estimated assets. 

By capturing just a percent of the Develop segment’s opportunity via a direct-mail cross-sell campaign, the firm can reasonably expect to GENERATE A SIGNIFICANT AMOUNT OF ASSETS

10% of the total opportunity would increase AUM by $3,002,225,894

15% of the total opportunity would increase AUM by $4,503,338,841

20% of the total opportunity would increase AUM by $6,004,451,788

Results may vary based on actual data and situation.
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