Study: Asset Managers Should Use Segmentation Strategies for Advisers

When it comes to reaching out to advisers, asset managers need to stop attempting the one-size-fits-all approach, according to a study by asset management consulting firm kasina.

To maximize the value of each adviser, firms should utilize segmentation techniques to customize the way they service advisers, according to a press release from the firm. kasina contends that a refined segmentation model will enable asset managers to develop and sell products for specific adviser audiences. According to the study, segmentation is the process of identifying unique subgroups of people with common characteristics (in this case, advisers) through market-validated statistical techniques.

In the past decade, many asset managers employed rudimentary segmentation methods, only to see little measurable impact on sales in the end, the firm said. More sophisticated, adviser-based segmentation utilizing a more holistic view could be beneficial for both asset managers and advisers.

The model kasina recommends focuses on using existing data in more creative and resourceful ways. “In our research, we found many firms stuck in analysis-paralysis,’ said Anu Heda, senior managing consultant at kasina, in the release. “For instance, firms can reduce the paralysis effect by using a representative sampling of data to infer broader conclusions about the adviser base as a whole. Data analysis can also be used to assess whether certain sales opportunities are profitable, taking into account all communication costs.’

As efficient marketing and distribution become more crucial, asset management firms can use segmentation strategies to ensure resources are driving profit, kasina says.

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