Manage and find value in low potential customers

November 23, 2020

Finding value in low potential customers

Brokerage firm endeavors to generate revenue from low balance customers


A leading U.S. brokerage firm had a large number of investment accounts with small balances

The firm wanted to:

  • Identify which of these accounts had minimal growth potential 

  • Prevent FAs from wasting valuable time and effort on trying to develop these accounts 

  • Come up with an alternative means to find value from them 


WealthComplete® enabled the firm to identify low balance accounts with minimal growth potential and derive value from them

The firm used WealthComplete total household asset estimates to identify 100,000 low balance accounts with limited asset growth potential

To offset the costs of servicing this group, the firm implemented the following revenue generating programs: 

  • A $50 ANNUAL ACCOUNT FEE for all accounts with a balance below a specified threshold, while allowing financial advisors
    to waive the fee for some accounts based on relationship development reasons

  • FAs were instructed to LIMIT their attention on these accounts

RESULTS: Brokerage firm achieves 300% ROI, $2.5 million in revenues, and $20 million in incremental AUM

A targeted effort DIRECTED AT THE LOW BALANCE ACCOUNTS resulted in:

$2.5 million in incremental revenue from 50,000 accounts that were charged the $50 account fee 

$20 million in incremental AUM invested by approximately 2,000 customers that chose to raise their balance by an average of $10,000 to avoid the fee 

An estimated ROI of over 300% achieved within just six months 

Results may vary based on actual data and situation.
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