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    Case 1 Merrill Lynch: Supernova

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    Arup Sarkar
    Merrill Lynch implemented the Supernova program to address issues with their financial advisor (FA) model such as FAs focusing only on selling products and high customer turnover. Supernova segmented customers based on past value, required FAs to have frequent personalized contact with core clients, and rapidly respond to issues. However, problems arose from unrealistic client expectations and lack of investment analysis tools and training for FAs. The group recommends enhancing Supernova with wealth management integration, proper FA segmentation and training, and local manager support to address issues and fully realize benefits.

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    Case 1 Merrill Lynch: Supernova

    Uploaded by

    Arup Sarkar
    2K views9 pages
    Merrill Lynch implemented the Supernova program to address issues with their financial advisor (FA) model such as FAs focusing only on selling products and high customer turnover. Supernova segmented customers based on past value, required FAs to have frequent personalized contact with core clients, and rapidly respond to issues. However, problems arose from unrealistic client expectations and lack of investment analysis tools and training for FAs. The group recommends enhancing Supernova with wealth management integration, proper FA segmentation and training, and local manager support to address issues and fully realize benefits.

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    Merrill Lynch: Supernova Case Analysis

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    ML SuperNova CaseStudy

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    Merrill Lynch implemented the Supernova program to address issues with their financial advisor (FA) model such as FAs focusing only on selling products and high customer turnover. Supernova segmented customers based on past value, required FAs to have frequent personalized contact with core clients, and rapidly respond to issues. However, problems arose from unrealistic client expectations and lack of investment analysis tools and training for FAs. The group recommends enhancing Supernova with wealth management integration, proper FA segmentation and training, and local manager support to address issues and fully realize benefits.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    2K views9 pages

    Case 1 Merrill Lynch: Supernova

    Uploaded by

    Arup Sarkar
    Merrill Lynch implemented the Supernova program to address issues with their financial advisor (FA) model such as FAs focusing only on selling products and high customer turnover. Supernova segmented customers based on past value, required FAs to have frequent personalized contact with core clients, and rapidly respond to issues. However, problems arose from unrealistic client expectations and lack of investment analysis tools and training for FAs. The group recommends enhancing Supernova with wealth management integration, proper FA segmentation and training, and local manager support to address issues and fully realize benefits.

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    Merrill Lynch faced issues like underachievement, high turnover of financial advisors, and client dissatisfaction before implementing Supernova. Supernova aimed to improve client services, organize customer relationships, and evaluate financial advisors based on quality of clients rather than just client numbers.

    Some of the problems Merrill Lynch faced before Supernova included financial advisors not having enough time to care for clients, no identification of core clients, poor service to customers, and advisors being evaluated only based on number of customers rather than quality of relationship.

    Before Supernova, Merrill Lynch segmented its clients based on past customer value, primarily considering revenue generation, assets, and preference to do business with. This segmentation focused only on past customer value.

    CASE 1 MERRILL LYNCH: SUPERNOVA

    PRESENTED BY: GROUP 1 ARUP SARKAR KANWARDEEP SINGH NAMAN GUPTA NITIN SHIVNANI SHASHWAT DHAMMY 063010 063018 063026 063033 063047

    About the Company Established in 1907 A prominent financial management and advisory company Delivering services to individual clients (retail brokerage) through stock broker and financial advisors (FAs) Merrill Lynch conducts its business based on five principles: Client Focus, Respect for the Individuals, Teamwork, Responsible Citizenship and Integrity.

    CASE SUMMARY
    Before SuperNova

    l. FAs are evaluated by No. of customers

    Net Revenues (in USD)

    30000

    26766 2. No identification of core customers


    25000 20000 15000 10000
    5. Non organized customer 5000 relationship

    21880 18608

    Underachievement

    3. FAs did not get enough time to care about


    customers

    4. Poor service to customers

    Net Revenues
    High Turn-over Dissatisfaction

    6. Only try to sell product not business process

    2000

    2001

    2002

    CASE SUMMARY

    3 Critical Aspects
    1 Frequency and quality of contact 12-4-2

    SuperNova
    12 monthly contact Quarterly portfolio report Biannual face to face meeting Rank by revenue generation Rank by assets Willing to work with Reduce 550 to 200 clients Client associates support Folder system Reduce administrative work Using referrals Spend 2 ~4 hours to acquire new customers

    Promises

    You will have a multigeneration financial plan in place.

    2 Rapid response to problems

    Segmentation

    Organization 3
    Attention to details Acquisition

    You will be contacted by your FA at least 2 times every year You will receive rapid response, hearing from us in 1 hour, and having resolution within 24 hours

    PROBLEMS OF SUPERNOVA

    Does not care about customer future potential in segmentation Lack of information for further investment analysis and consulting

    Internal problems Change Management from seller to counsellor Lack of effective communication Reluctance and distrust Which generated external troubles. Higher clients expectations How to measure client satisfaction?

    SEGMENTATION
    Segmentation based on past Customer Value
    Based on Past Customer Value
    ll Rankings
    Revenue generation Assets Preference to do business with . .
    .

    Primary clients

    Why FAs should adopt Supernova


    Increased compensation Greater client loyalty Greater level of organisation of work Payment by Merrill Lynch for those clients sent to the center

    OUR RECOMMENDATION

    ltranova of Supernova with Integration Wealth Management System

    Segmentation of FAs Pool Connect right FAs to customers Consider the tendency of customers and the type of investment assets, then, connect proper FAs to customers One customers assets can be managed by several FAs or one FA, depending on the customer's asset portfolio

    Hand held PDAs for FAs connected to company CRM

    To recommend a good financial product to a client, CRM needs to be integrated with wealth management system
    Supernova should contain more in-depth and detailed information of investment analysis

    OUR RECOMMENDATION
    Proper training should be given to the FAs and client associates so that the FAs are able to fulfill the service promised. The employees should be trained to run segmentation software and implement folder system.

    Local managers should coach the average new adopters to begin acquiring as early as possible
    Business acquisition contests Mentors and managers located within local office to work with the FA towards his success Base salary for the first two years to the FAs

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