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CASE 1 MERRILL LYNCH: SUPERNOVA

PRESENTED BY: GROUP 1 ARUP SARKAR KANWARDEEP SINGH NAMAN GUPTA NITIN SHIVNANI SHASHWAT DHAMMY 063010 063018 063026 063033 063047

About the Company Established in 1907 A prominent financial management and advisory company Delivering services to individual clients (retail brokerage) through stock broker and financial advisors (FAs) Merrill Lynch conducts its business based on five principles: Client Focus, Respect for the Individuals, Teamwork, Responsible Citizenship and Integrity.

CASE SUMMARY
Before SuperNova

l. FAs are evaluated by No. of customers

Net Revenues (in USD)

30000

26766 2. No identification of core customers


25000 20000 15000 10000
5. Non organized customer 5000 relationship

21880 18608

Underachievement

3. FAs did not get enough time to care about


customers

4. Poor service to customers

Net Revenues
High Turn-over Dissatisfaction

6. Only try to sell product not business process

2000

2001

2002

CASE SUMMARY

3 Critical Aspects
1 Frequency and quality of contact 12-4-2

SuperNova
12 monthly contact Quarterly portfolio report Biannual face to face meeting Rank by revenue generation Rank by assets Willing to work with Reduce 550 to 200 clients Client associates support Folder system Reduce administrative work Using referrals Spend 2 ~4 hours to acquire new customers

Promises

You will have a multigeneration financial plan in place.

2 Rapid response to problems

Segmentation

Organization 3
Attention to details Acquisition

You will be contacted by your FA at least 2 times every year You will receive rapid response, hearing from us in 1 hour, and having resolution within 24 hours

PROBLEMS OF SUPERNOVA

Does not care about customer future potential in segmentation Lack of information for further investment analysis and consulting

Internal problems Change Management from seller to counsellor Lack of effective communication Reluctance and distrust Which generated external troubles. Higher clients expectations How to measure client satisfaction?

SEGMENTATION
Segmentation based on past Customer Value
Based on Past Customer Value
ll Rankings
Revenue generation Assets Preference to do business with . .
.

Primary clients

Why FAs should adopt Supernova


Increased compensation Greater client loyalty Greater level of organisation of work Payment by Merrill Lynch for those clients sent to the center

OUR RECOMMENDATION

ltranova of Supernova with Integration Wealth Management System

Segmentation of FAs Pool Connect right FAs to customers Consider the tendency of customers and the type of investment assets, then, connect proper FAs to customers One customers assets can be managed by several FAs or one FA, depending on the customer's asset portfolio

Hand held PDAs for FAs connected to company CRM

To recommend a good financial product to a client, CRM needs to be integrated with wealth management system
Supernova should contain more in-depth and detailed information of investment analysis

OUR RECOMMENDATION
Proper training should be given to the FAs and client associates so that the FAs are able to fulfill the service promised. The employees should be trained to run segmentation software and implement folder system.

Local managers should coach the average new adopters to begin acquiring as early as possible
Business acquisition contests Mentors and managers located within local office to work with the FA towards his success Base salary for the first two years to the FAs