Last week, we explored how understanding customer feedback could provide wealth firms with a competitive advantage. Annualised client insight programmes can turn private banks into Jedis of wealth; harnessing knowledge to capture points of customer apathy and banish dissatisfaction into darkness.

But to become a Yoda of wealth requires a deeper voyage into the galaxy of customer insight. Real-time analysis on client data not only enables firms to respond more quickly to changes in sentiment, but also to develop a predictive power.

The e-commerce industry is one area where the force is strong in this regard. Netflix, the online entertainment hub, has built such advanced data analytics that it can anticipate what their customers will do next. The secret to their success is assessing and combining multiple streams of real-time insight. What viewers watch or search for, the times of day they do so and the triggers that make them fast-forward or rewind are all areas of analysis.

Instead of just using audience data merely to identify what customers have liked in the past, Netflix leverages it to  its predict what they will like in the future. Real time insight allows them to react quickly and create new content accordingly. The series “House of Cards” is a notable example of this – bought by Netflix because its analysis suggested it would be successful, the show is hugely popular across the world.

Imagine if wealth managers could also master the techniques employed by companies like Netflix; leveraging detailed, real time client insight to anticipate their future product or service requirements.

Some of the wealth management firms we work with have already started to move in this direction. A recent case study of one of our clients – Firm A – provides an example of how ‘the power of data’ can be translated into a more proactive business strategy.

Firm A monitored client sentiment on an annual basis. Figure 1 shows the yearly results of this client sentiment tracking. It highlights a sharp drop in customer satisfaction in Year 2 and a sharp improvement the following year. While such analysis is a valuable warning flag, it does not help to pinpoint where or why this change in sentiment could have occurred.

Figure 1: Yearly Results of Client Engagement Survey


However, Firm A also decided to undertake shorter pulse surveys alongside its more detailed annual programme. Quarterly analysis shows that the significant drop in customer satisfaction first appeared in quarter 2 of Year 2. Understanding this dramatic change in client sentiment enabled the institution to quickly analyse the causes for the drop and reorient its strategy accordingly. Measures were taken to tackle the problem and as a result performance continued on its more positive trajectory.

Figure 2: Quarterly Results of Client Engagement Survey


The case study demonstrates that listening to your customers often, if not yet on a real-time basis, pays off. Using data analytics to track customer sentiment enables firms to tackle challenges more quickly; more frequent data is the key for wealth managers to move from reactive to proactive. Firms that master the ‘power of data’ are even able to take it a step further to anticipate the needs of their clients.

Netflix realises that this strategy is paramount to the success of its business, because when viewers are satisfied and keep watching movies they will remain customers. As Netflix CEO Reed Hastings says “once you subscribe, our interest is purely your happiness.”

Adopting the Netflix strategy and listening to your customers frequently could be the secret to ensuring their happiness… and could also give you the innate wisdom to become a Yoda of wealth.

Thought for the week:

“Do or do not, there is no try” – Yoda, Star Wars

News from the world of wealth:

Swiss Private Bank UBP ponders Asia deals after Coutts purchase – Bloomberg

UBS to launch UK ‘robo-advice’ service – Financial Times

Asia’s rich investors embrace social-impact investments, not wealth managers – CNBC

Singapore closes Falcon Private Bank for Malaysian fund link – ABC News

Coming events in the world of wealth:


DSC00009_websiteAuthor: Denisa Pritzova, Analyst

Background: Originally from Slovakia, Denisa completed her studies in the Netherlands before moving to the UK. She speaks English, German and Slovakian fluently. She joined Scorpio after completing various internships including at RBS and the British Embassy.

Education: Denisa holds a Joint Master’s degree in International Business from Rotterdam Erasmus University and completed her Bachelor’s degree at Maastricht University in the Netherlands. During her studies she had the opportunity to spend a semester abroad at TEC de Monterey University in Mexico as well as at UCD Business School in Dublin.

And at the weekends: Denisa likes to escape the hustle and bustle of the city, and go hiking or cycling. She also enjoys anything that involves music, and is always looking for an opportunity to go ballroom dancing (or any dancing really!).

Photo from Matthias Ripp, used under creative commons license

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