Successful asset management firms are increasingly leveraging alternative data, or data sets, to provide an informational edge over their competitors. As these firms increase the effectiveness of their data strategies, other firms will find it harder to distinguish themselves by only using the same market data as everyone else.

Alternative financial data strategies mine new and unconventional data assets for market insights that are buried inside CRM systems, as well as weather, website traffic, social media, news, and even public opinion sources. Here is how asset management firms can leverage data sets to gain a competitive edge.

Examining the marriage of market data: A more sophisticated approach to targeting in asset management

Data lakes are an area of newer technology that provides a platform for processing a large variety of data sources at higher volumes while significantly lowering costs versus traditional data platforms. Visual analytics provide the ability to visually interact with, discover insights about, and act on these ever-increasing volumes of data—which increases return on investments and enables sales teams to use that data in a timely, secure, and collaborative way.

Typically, asset managers have focused their sales teams and broker segmentation approaches on a simple, “understanding of opportunity” basis—“opportunity” being viewed primarily as sales, where more is better. However, leading firms are taking a more sophisticated approach to targeting that looks at not only the opportunity, but also at data sets or data packs—the marriage of market data—as well as their ability to influence the sale.

Data brokers, such as FactSet’s Market Metrics, Pershing’s Albridge Solutions, and DST Systems, specialize in collecting and selling data about financial advisers. Data packs typically include product purchase history for advisers and their firms, market share, web statistics pulled from the fund companies’ own sites, and information from the adviser’s broker-dealer. This is all good, but, in today’s world, it’s no longer enough…particularly if your competitor is using the same data.

Using machine learning, natural language processing, and human knowledge to improve decision making in asset management

Advanced analytics enable processing of all kinds of structured and unstructured data to improve decision making. For example, cognitive (also called natural language processing) services can help generate investment insights from news reports, analyst reports, and social media. These tools can even detect sentiments in the conversations and provide insights into negative and positive discussions about your products, earnings calls, company management, and research analysts.

Data sets and analytics can improve decision making by combining the power of machine learning, natural language processing, and human knowledge to analyze news events and create a score based on their potential impact on portfolio holdings. Now, you have a customized news feed that helps with investment decisions and managing portfolio risk.

Proactively using data as actionable intelligence for asset management firms

Don’t miss out on sales opportunities by not proactively using data as actionable intelligence to increase revenue. Using analytics helps you to access the huge amount of data generated in financial services.

Can you answer “yes” to the following questions?

  • Is your data accurate and timely?
  • Do your reports aggregate CRM information with sales reporting, data from third-parties, and other data sources?
  • Is your system accessible in an easy to navigate dashboard?
  • Can you quickly and easily drill down to details?
  • Does it help your sales team—regional sales managers, internal and external wholesalers, and key account people—know who to target and engage?

Here are a few scenarios of how using your CRM data with data sets and analytics can provide actionable intelligence:

Using sales data to be more proactive and increase client satisfaction

When advisers place large orders, it’s often a sign they value your products and might be prepared to recommend them to other clients. Do you receive a daily report listing the largest orders placed for the prior business day? Can it be sliced by firm, office, advisor? Is it available the next morning, or later in the week or even the month? Timely information helps your wholesalers decide who they should call and/or email for follow up to have the greatest impact.

Being more strategic in planning visits

Planning and traveling to visit advisers are time consuming and expensive. When planning these visits, is the decision of who to see made more by instinct or “gut feel”, or is it more strategic? Using Power BI and actionable data, your sales team can optimize your wholesalers’ schedules so they spend their valuable face time with the most important adviser teams and individuals. They can also instantly identify a good replacement should a scheduled meeting get canceled while they are on the road. Wouldn’t it be best to reschedule with advisers that have high transaction volumes and high relationship scores? Less productive advisers might be best served by calls by internal wholesalers and/or by email campaigns or webinars.

Determining if your marketing is working

After an event, email, or related marketing campaign is completed, can you see the impact it has on sales? For example, new marketing materials were created for an event, and you see that advisors’ sales on the west coast have sharply increased. Wouldn’t it be helpful if your system could identify this trend and notify your wholesalers automatically? Or, let’s say that during visits, your wholesaler learns about a successful adviser positioning your product. Using actionable intelligence, your data can help you generate additional marketing approaches that are successful and share that with other reps and advisers.

Taking action on big changes

An adviser places a redemption order for a large amount. Can this information be captured and rapidly communicated to the appropriate wholesaler? Did the client need the cash, is the broker unhappy with the performance, or has the mandate changed in some way? Having a real-time, actionable intelligence system can help you more quickly identify these transactions and take positive steps to mitigate them or provide alternative options.

Taking advantage of effective and integrated sales dashboards

Wholesalers should have the most relevant data and information viewable on a single dashboard on their PC as well as their mobile device. The data should include information generated in house as well as that from your third-party data packs. Using a dashboard with this “mash-up” capability increases the productivity of your reps by having this information at their fingertips, in one solution versus multitasking between multiple applications and reports.

Using competitive information to your advantage

You learn a competitor will be closing their large-cap equity fund to new investors. Can you quickly identify your largest producers for your large-cap fund? If yes, this would allow you to quickly build a list to offer an alternative product. Providing timely and valuable information and options can significantly improve the relationship with your advisers.

Are you ready to put your data to work? Contact HSO to learn how you can capitalize on data packs, actionable intelligence, and more.