MERRILL LYNCH: SUPERNOVA

Prepared By: Chandrachur Pan Deepak Kumar Babita Poddar Kumaresh Kar

MERRILL LYNCH

MERRILL LYNCH

A FINANCIAL ADVISORY FIRM:

Founded in 1907.
One of the biggest financial Management and advisory firm in America with 15,753 register financial advisor.

FINANCIAL ADVISOR ADVANTAGE.

High Amount of incentive on every business(Private client group). A percentage of the revenue generated from commission for buying and selling financial products in a client account as high as 40% of the amount charged to the client. A percentage of the revenue generated from annuitized, or feebased accounts in which a client didnt pay a trade securities, but was annually charged a small percentage of the assets. FAs have full freedom create their own work process to help their clients.

MERRILL LYNCH PVT. CLIENT GROUP FIELD ORGANIZATION STRUCTURE:

PROBLEMS:
1970s- Partial deregulation in stock broking. Under deregulation new firm entered into the stock market with different service offering (Discounters). BY the year of 2000 the market share of Discounters is bigger than the market share of Full-line brokers. To protect their market share there was a strong need of good customer service. Which was a problem in Merrill Lynch.

PROBLEMS: Average Merrill FAs has 550 clients. Deterioration in the following: The frequency and the quality of contact Rapid response to problems. Attention to details. Most of the FAs work with a Assistant, even then it became very hard for them to give proper customer support to all their clients.

SUPERNOVA:
Segmentation in client base in term value addition by the client to the business. Rob Knapp: Father of Supernova. Knapp was the head of Merrill Lynch in Mid-West district. In 1995 Knapp had a good year in revenue terms, but his district ranked last in client satisfaction among 32 districts in USA. According to Knapp:The objective of Supernova is to create the ultimate client experience.

Supernova

Supernova

SUPERNOVA: 12-4-2

Need Segment

A supernova financial advisor had 12 Monthly contacts. 4 Portfolio reviews. 2 Face-to-face meetings.

Segmentation
Spread sheet model developed to segment client: Each FA to have only 200 Client Criteria: $ 1 million in Annualized assets or $ 10 K in annual production fees. Key Findings of Segmentation: 33% of Clients generated 89% Business Action on Findings: Retain 33% Clients (Primary Clients) Retain Important Family or Business Associates. Retain those who are part & parcel of Primary Clients. The Ratio was found to be 3: 1.

Organization
Supernova Client Associates Job:
Preparation Of Daily Folders Preparation of Reports & action Plan Interaction with Clients if FAs presence was not legally binding

FAs Involvement
Folder System Folder Guilt

The Super Nova Service Promise

1. Multi Generation Financial Plan in place 2. FA Contact at least 12 Times in 1 Year 3. Rapid response (Heard within 1 Hour, Problem addressed within 24 Hours)

Acquisition
More Time to acquire Valuable Clients Good service to existing Clients Generating Word of mouth Quality Referrals Satisfied Clients Mean More Business Prospects More calls & less Sales Pitch help generate More business

The Road map

The Road map

The Road map

Thank You