Table of ContentsIntroductionPredictive Analytics for Business GrowthDisrupting “One Size Fits All” Investing StrategiesChoosing the Right TechnologiesThe Future of Personalization Analytics ToolsIntroductionOver the last five years or so, wealth management Personal wealth has transformed into a new industry. This transformation is partly a result of new technologies such as artificial intelligence (AI) and robo-advisors becoming mainstream resources. This happened in part because customer demographics began to get younger. The two trends go hand in hand. Say no to plagiarism. Get a Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get the Original EssaySuccessful wealth management advisors have already taken steps to capture a share of this competitive and fluid market. New and existing businesses gaining customers and managing assets are those that have leveraged advanced technology resources to narrow the funnel, accelerate sales engagement, and personalize their services. poised to transform the wealth management industry, with new ways to interact with new clients, manage client relationships and manage risk. The industry is moving from knowledge to foresight – knowing what is happening to knowing what can or will happen. Predictive analytics can make a good company great, and a great company can excel even more. “Today, advanced analytics impacts every phase of the customer acquisition funnel. New customer acquisition: Using internal and external data (more on that below) to create profiles , map relationships, identify new markets and generate better leads.New and existing customer sales: Track data to create net worth and share of wallet profiles, determine potential lifetime value of customers. a client and measure risk tolerance for various fund types and advice by correlating transaction and channel data with market events Existing client advice: using information from client surveys and. other input sources, customize portfolio allocations and provide real-time trade/investment ideas based on preferences and market events. Improve question-and-answer and person-to-person capabilities. automatic advice channels. Supervision of existing clients: Regularly assess the suitability of wealth management approaches to keep each client in an optimal position by comparing personality and investment profiles with investment and trading activities. Customer Loyalty: Collect and compare channel and social data about customers to stay informed about their current satisfaction, risk tolerance, interests and relationships, thereby improving retention and referrals. At each stage of the funnel, use predictive analytics to track and leverage critical business outcomes and key factors such as customer segments, advisor books and product penetration, and to assess adoption and growth. effectiveness of tools and methodologies. Disruptive “one size fits all” investment strategies Demographics have shifted significantly towards younger people. Millennials have overtaken Baby Boomers as the largest adult demographic, bringing with them high wealth potential and opportunity for enormouslifetime value for customers. Predictive analytics helps wealth advisors understand “value” from the client’s perspective. In particular, data can highlight the point at which convenience and price reach parity that appeals to the new or existing customer. With this information, wealth advisors are better able to identify new client growth opportunities within the demographics currently served, as well as those within younger demographics. Both are important. As baby boomers retire, many are reviewing their goals and risk tolerance. They may focus on succession or inheritance planning, for example, and seek peace of mind knowing that their investments will support businesses and their loved ones for the long term. In contrast, younger individuals bring a high potential for lasting lifetime customer value, as they are more likely focused on generating wealth to eliminate debt, purchase property, or start a business. With the right data points, advisors can understand each of these clients' values, their investment types and risk profiles, and even how they like to interact with an advisor - personalizing the strategy and relationship . Choosing the Right Technologies Knowing which technology to commit to, for whom and for what specific purpose(s) is a much bigger challenge than finding the right resources. As in many other areas of your business, the desired outcome should dictate the resource you choose. In this case, start by identifying the most valuable data for identifying, understanding or serving your prospect or customer. With the end goal in mind, you can collect and use data to personalize and nurture the relationship with a high degree of agility. Personalization Social media listening is an ideal way to understand what your prospects and customers value and refine your offerings. and advice in near real time. Wealth managers can use tools like Facebook as a search engine, study posts and responses within a prospect or client's network to get a sense of how they value time, events of life that can influence their decisions, and more. Accuracy Predictive analytics does the job of linking data such as keywords precisely and without cognitive bias. The benefit of connecting recent information to stored data is clear. Wealth managers can stay on top of changing external factors and personal events that influence things like financial stress (e.g., privilege) or opportunities (e.g., promotion), so they can provide in with complete confidence and timely, appropriate advice and resources. ForesightCLTV is earned because it is nourished. Through consistent, long-term data collection, wealth managers can build a personalized timeline for each client that highlights patterns, behaviors and other factors that have – and may in the future – influence their investment decisions. The most useful timelines are those that have been recorded over numerous periods of study and can be referenced as soon as possible to understand how a client or prospect is likely to respond to an attorney. Understanding customers is essential to the continuity of any business relationship. but it is particularly vital for relationships that require a high degree of trust on the part of the customer and a high degree of proactivity.