Products February 1, 2008

Program Lets Advisers Outsource Client Retention Strategies

A new program, FAcontact, offers advisers a way to give clients regular continued contact, so they can spend more time prospecting.
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The program contacts the adviser’s clients by phone and by personalized direct mail every three months. The calls allow advisers to learn of any client desires or life changes and opportunities for additional business. Advisers may also supplement the high-touch program offered by FAcontact with a monthly email newsletter specifically designed to have the client contact the adviser.

FAcontact is a joint venture between Customer Management Systems (www.cmsdealer.com), a provider of client retention programs for auto dealers, and Javelin Marketing (www.javelimarketing.com), which specializes in rapid business growth systems for financial advisers. FAcontact is a product that combines Javelin Marketing’s knowledge of how to build the business of financial advisers with the client retention systems developed by CMS, the companies said.

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Data & Research February 1, 2008

Asset Managers Struggle to Differentiate

A study from asset manager consultant kasina suggests executives are thinking alike when it comes to facing industry challenges.
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The consultant spoke with 23 senior executives from some of the largest asset managers in the U.S. and found that 45% noted the importance of improved product development and 36% listed the importance of improved distribution through Sales and National Accounts when competing in the marketplace. A press release on the study said the results showed that just as most executives seem concerned about the same issues, they are responding to these issues with ideas that are echoed widely by their peers.

“The Morningstar nine style boxes are overcrowded with copy-cat products,” Sean Carroll, a manager at kasina, said in the press release.

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Firms are not only competing for product shelf space, they are also competing for the same distribution opportunities, the study found. As with the Morningstar boxes, the large distributors like Merrill Lynch are overcrowded, making it impossible for every firm to succeed in that system, kasina noted.

The study, “The Future of Distribution: Stay the Course or Innovate?” examines key opportunities asset management leaders can develop for future growth in an increasingly competitive market.

According to kasina, firms will need to:

  • Think Outside the Box: Given the overcrowded market, firms must develop innovative products with no existing competition to command higher fees.
  • Use Segmentation to Improve Distribution: Firms should use segmentation to identify unique opportunities while capitalizing on new roles, such as hybrid wholesalers.
  • Decide Now: Should We Go Global? As foreign markets grow faster than those in the U.S., firms must make a commitment to going global.

More information about the study can be found at www.kasina.com.

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