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Best Practices for Brokerage Firms: Quantifying the Opportunity and Creating Client Treatment Groups

Brokerage Firms Can Use IXI’s Total Assets Estimates to Identify Millions of Dollars of Hidden Assets within Client-Base
Financial services firms can take their treatment group analysis a step further with IXI’s Client Action Planner Reports. These reports offer a unique “Book-of-Business” analysis for each of the firm’s FAs, enabling them to quickly identify which clients are likely to hold the most potential and where they should focus their time.
Objective

A leading brokerage firm wanted to be able to understand the hidden asset potential within its client-base. The firm and its Financial Advisors knew what financial products and balances its clients held with them, but did not have a way to quantify clients’ total potential, resulting in missed opportunities.

The firm wanted to:

  • Better understand the total financial opportunity held by its clients
  • Help FAs segment their books of business and spend the most energy on high opportunity clients
Household Segments
Solution

The brokerage firm utilized IXI’s WealthComplete® household total assets estimates to gain a better understanding of the firm’s client-base. By using IXI’s total assets estimates, the firm was able to:

  • Better gauge the total opportunity and its share of wallet for its entire customer base
  • Segment each Financial Advisor’s book of business using a Client Action Planner report in order to identify high growth potential “Develop” clients – households that have a less than average balance at the firm, but likely have high total investable assets
Results

The firm’s Financial Advisors can now focus on increasing their Develop customers’ average balances. By capturing just a percent of the Develop segment’s opportunity with cross-sell and upsell efforts, the firm can reasonably expect to generate a significant amount of assets:

  • 10% of the total opportunity would increase AUM by $3,002,225,894
  • 15% of the total opportunity would increase AUM by $4,503,338,841
  • 20% of the total opportunity would increase AUM by $6,004,451,788
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