Customer Experience for Wealth Managers

by Christopher Brooks, Lexden

Customer Marketing Strategists putting the customer at the start

and the heart of the business decision making process.

Please contact us if you would like to know more about how we

can help with customer strategies such as customer

experience, customer propositions, acquisition,

retention or brand enrichment.

Lexden Ltd

83 Great Titchfield Street | London | W1W 6RH | T: +44 (0)207 637 8836 | www.lexdengroup.com |

christopherbrooks@lexdengroup.com

“Hello. I’m a potential investor. Can you help me please?”

Without guidance we are lost

“Without guidance, how will I know where to invest?”

As a potential investor, I’ve been comfortable following the trail of confidence clues the adviser has provided me| The adviser has put wealth management brands on my radar | Their ads I now spot and they reaffirm what the brands stand for and what criteria I should consider when selecting between them | I ask others, they have seen and comment on these signs of brand strength | This combination has influenced the wealth manager I choose | The wealth manager knows the ‘ad impact’ and ‘NPS’ scores have been good indicators of prospect activity | All is well.

But imagine if the adviser wasn’t able to guide me? | Undirected, the brands aren’t on my radar | The ads now pass me by | It happens to others too, they no longer can help me | Without this confidence, uncertainty creeps into my criteria & consideration thoughts | I am now lost | All is no longer well.

Why customer experience will be so important to the future success of Wealth Management organisations

A wealth management business is driven to achieve a better financial performance than their competitors (which could mean other wealth managers, apathy or other investment classes).

And so they should be. After all that’s the business they are in; achieving a positive financial performance for their stakeholders. That’s why clients choose them over others.

What is the purpose of a Wealth Manager?

How much impact does CX have on their business?

However, an investors commitment to a wealth management brand to make a return is a leap of faith (or they might say calculated risk) until it delivers. The uncertainty of a future outcome is a dominant modern theme of our times.

So how does the modern wealth manager, in the absence of being able to predict future outcomes, create the confidence it can deliver? This is achieved in the strength of its assets and advocates that it’s clients experience. As with any purchase, clients apportion importance to each factor*.

However, unlike most markets, the wealth management target operating model (driven by regulation) has outsourced control of a key driver of choice to the mercy of a third party; the adviser. In some sectors this ‘experience’ represents as much as 40% of the decision making criteria.

Reclaiming control in the new world

Now the rules have changed, the role of the adviser and their importance to wealth manager and client alike has changed – so how will clients recalibrate confidence preference now?. It will be those wealth managers who can supplement that 40% confidence gap with a credible experience who will capture the attention, consideration and preference of clients in the new world.

* Breakdown of factors impacting choice of Wealth Manager available from Lexden. See slide 4.

Where do you start with Customer Experience?

Keep it Commercial

As an agency dedicated to putting customers first, we recognise the currency of any business is revenue and profits. To ensure customer improvements (which lead to increased customer satisfaction, customer advocacy & customer retention) are supported, a commercial business cases like any other business investment is required. Framing the customer as a currency helps push the focus on to the KPI dashboard and the boardroom agenda.

Invest appropriately in business assets

There are several factors which influence client consideration, preference, commitment and retention. Amongst these are brand, experience and performance. Organisations are often surprised when the financial driver (e.g. price, performance) is only the third or fourth most important factor. Especially when they calculate how much they invest in this area versus the more influential areas of preference.

Recognise the real customer

Hotels confuse a room with a customer. Utilities confuse a meter with a customer. It happens. And Wealth Managers confuse funds to invest with the customer.

It is important for the organisation to recognise the role the end client plays in driving the profit. And the impact everyone has on that outcome.

Recognising the real customer works. The UK top 10 performers in Customer Experience outperform the FTSE 500 by 980%.

Lexden provide a CX Maturity Audit & Roadmap to help the business understand where it is now, where it should aim to be to maximise customer profits and the roadmap of improvements needed to achieve this.

Lexden can structure a two phase CX Improvements Programme to identify where resources can achieve the greatest incremental return on CX activity as well as how to reduce the ‘cost to serve’ customers.

Lexden recognise the importance of stakeholder engagement & culture change to become successful in CX. Our governance programme helps the business realign itself around the customer and all that entails.

Lexden’s CX for Wealth Managers programme

1. Maturity Audit & Roadmap

We will assess where you

are, where you should be

and create a roadmap for

you to realise the full

commercial opportunity of

CX.

Define vision, commercial

ambition and resource

deployment required . Scope

key CX improvement work

streams and supporting

governance.

2. Set-up & kick-off

Discover and develop

improvements. Track and

report performance. Continued

socialisation of improvements

and incremental contribution.

3. CX Fix & Build programme

Based in London and Edinburgh, we provide an introduction through to full delivery of customer

experience programmes

We are Customer Marketing Strategists putting the customer at the start and the heart of the business decision making process.

Please contact us if you would like to know more about how we can help with customer strategies such as customer experience,

customer propositions, acquisition, retention or brand enrichment.

LEXDEN | Putting

customers at the

start and the heart

of the marketing

strategy

83 Great Titchfiled Street, London, W1W 6RH www.lexdengroup.com | @consultingchris

JUDGE

“They brought our research to life with such flair and imagination that the business just

had to sit up and take notice“ Tom Kerr, Head of Insight, Tesco Bank

“Lexden taught me a tremendous amount about what it means to really

think customer” Celia Felgate, Customer Experience

Manager, npower

“They always provide the highest quality work and output that is grounded in the commercial realities of the business.” Colin Robertson, Director Customer, P & L, MORE TH>N

“The method of work & fundamentally the results, demonstrated an intelligent, progressive & creative marketing. It consumed everyone with the motivating approach” Hugo Pinea, Oney Bank, Portugal

What our clients say they value from Lexden