The North American financial investment services industry is highly competitive and volatile. Consumers are concerned about managing their financial future, more savvy in looking for financial organizations that create the greatest value for them, and more demanding in seeking to work with advisors who provide personal, timely, accessible, and relevant service. In this industry, the cost of both customer acquisition and switching are high. Consequently, delivering an excellent investor experience is critical to maintaining and growing market share.
The Client is a leading financial investment firm in North America, offering financial advice and investment services. Their Financial Advisors work closely with investors to understand financial needs and create plans to support investor goals. Advisors provide advice on a range of financial areas including investments, insurance, debt management, legal, trust and retirement planning.
The competitive environment in investment services is dense with both traditional and non-traditional players. The Client is primarily competing with traditional banks offering investment services, however, non-traditional players, particularly in the online space have entered the market as well.
The Client engaged The Verde Group to help them deeply understand the competitive landscape, and how banks were failing to deliver an acceptable customer experience (CX) to their investors. In addition, the Client wanted to specifically understand how to differentiate their own CX performance in order to maximize acquisition and retention of new investors.
The Client sought to explore:
The Verde Group worked alongside the Client to deliver a detailed analysis quantifying which experiences matter most to investors, and which negative experiences were the most damaging to investor asset retention. The proprietary methodology used in this analysis is based on a fundamental principle of human behaviour: customers are more likely to take action in response to negative events than positive ones, and as a result, negative experiences are the strongest predictors of customer behaviour.
The analysis was both qualitative and quantitative. The qualitative study explored key themes and characteristics of shaping investor loyalty behaviours and provided the Client a deep understanding of investor experiences with both the Client and competitors. This work amassed an extensive inventory of specific positive and negative experiences likely to influence customer market behaviours.
The quantitative phase of the work surveyed over 1,000 investors online who had responsibility for some or all investment decisions in their household and had investible assets of up to $2 million dollars. This phase rigorously evaluated the potential problems from the qualitative work and quantified their damage to loyalty and retention. The analysis cut through the complexity of the investor experience by identifying which specific problems were most likely to prompt investors to move assets from one firm to another.
Revenue@Risk® analysis is a unique, proprietary analytic methodology that quantifies the financial impact of customer problems to answer these key business questions:
These insights helped the Client understand what mattered most to investors, prioritize key areas of focus, and design an acquisition strategy that would enable them to capitalize on bank competitors’ CX points of weakness.
The analysis armed the Client with the insight necessary to create an acquisition strategy that would migrate investors from their current banking relationships. Understanding clearly and in detail which investor problems were most likely to drive switching informed broad market messaging, targeted acquisition collateral and advisor training on key message points to deliver when meeting with a prospective investor with assets in a traditional retail bank. The work also delivered to the Client a much deeper understanding of their own investors, enabling the Client to prioritize and action CX experiences that mattered most to drive customer loyalty and retention.