Improving Customer Prospecting in Wealth Management

In today’s wealth management marketplace, the process of identifying potential new customers has not changed much over the decades: personal relationships, client referrals, some client demographic data in a sales support system, and perhaps a spreadsheet on the financial advisor’s laptop. A more quantitative and data-driven Big Data approach can result in a more efficient, effective, and ultimately more profitable way to identify and track the most highly value-added prospects to a financial advisor’s book of business.

In this Knowledge Sharing article, John Vide, Wei Lin, Fernanda Campello de Souza, Martin Costa, and Mauro Damo propose a model that can be utilized by wealth management firms and senior advisors prospecting for more lucrative clients as well as for junior advisors looking to grow their book of business through more clients.

This Customer Prospecting model provides the analytic tools to consume prospect data, investment returns, risk preferences, and other variables to drive the calculation of the relative value of individual prospects. That value can be used to prioritize marketing and other outreach efforts in soliciting the prospect’s business.

Read the full article.