Presentation Sagar

8/2/2019 Presentation Sagar

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*PRESENTED BY : Sagar Singha (MBA 4)


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Merrill Lynch

Established in 1907The prominent financial management and advisory company serving governments,

institutions and investors throughout the world.

Delivering services to individual clients (retail brokerage)through stock broker and

financial advisors (FAs).

Merrill Lynch places client relationships first and is proud to conduct or business based

on five unwavering principles:

Client Focus,

Respect for the Individual,

Teamwork,

Responsible Citizenship and Integrity.

INTRODUCTION


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MERRILL LYNCH BEFORE SUPERNOVA

Financial Advisors (F A) = Merrill Lynch delivers their services through FA

Customer interaction = Only when the customer calls

Compensation for F A = Share of revenue or % of revenue generated fromannuitized

How Fas work = Customer acquisition is prime goal

What others feel about Merrill (FAs)= Best in the market


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SUPERNOVA

Why Supernova

-Merrill Lynch maximum FAs rarely contacted their clients.

To offer them new investment products, which actually create customer dissatisfaction.

What is Supernova

It is the name of business process to Manage client relationships originated in MerrillLynchs Indian-polis Office.

Origin of Supernova

It is a Idea of Rob Knapp, of Mid West Dist office whose Customer Satisfaction ranked

last among 32 dist in country in 1995

Object of Supernova

To create the Ultimate client experience.


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SEGMENTATION

Appropriate number of clients = 200 per FA based on different criteria.

Clients minimum asset -$1 million at Merrill lynch

Choice of client through a spread sheet model

What about other clients = Transferred to other Fas or Financial Advisory Center

served through Toll free number.


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ORGANIZATION

Supernova provides administrative support followed by help gettingorganized.

Administrative support through Client Associates by way of daily Folder System.

The Supernova service promise using 12-4-2, Segmentation, Organizationguaranteed

You will have a multi financial plan in place.

You will be contacted by F A at-least 12 times every year

Response within one hour and resolution within 24 hours


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ACQUISITION

Each year FA to acquire some new high-quality clients.

Least promising clients to be transferred to other FAs or Financial AdvisoryCenter.

Now F As find 2 to 4 hours everyday for client acquisition.

Referral through existing prosperous clients.

PROCESS OF ADOPTING SUPERNOVA

Spread through road shows by users(FAs).

Two part pitch to sell supernova .

How good it felt to be delivering.


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Question 1: What does Supernova offer to Merrill-Lynch?

Sol : Supernova was the name given to a new way to manage client relationships that

originated in one of Merrill lynchs Indianapolis offices. Unlike a strategic initiative

from headquarters, it came up through the ranks as a strategy for implementation, in

response conceptual strategy set at the top.

The objective of supernova was to create the ultimate client experience.

Then they came up with 12-4-2, Segmentation, Acquisition, & origination.

12-4-2:- Was the supernova description of what clients minimum annual contractwith their financial advisor should be: 12 monthly contacts of which 4 were

portfolio reviews , and 2 were face to face meetings.


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SEGEMENTATION:-

Most supernova FAs decided to reduce their boo to (1) 200 Primary

clients (2) Important family or business associates of those clients (3)

those clients described as necessary to keep if you want to get into

heaven

The ratio of primary clients to important family or business associates

was targeted at 3:1.

ORGANISATION:

In effect, under supernova client associates triaged client telephone

calls, only involving the FA when necessary. Supernova client associates

also prepared Fas daily folders". Each folder contained clients most

recent financial plan, amendments to it, and information on the clients

family and business that the FA believed was germane to the relationship.This include mortgage and tax rates,realestate,insurance

policies,hobbies,immediate family and important relatives/associates and

financial holding not at Merrill.


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ACQUISITION:

The final part of supernova was acquisition". As suggested by Knapps suit

analogy, each year a supernova FA would acquire some new, high-quality clients,handling the least promising clients displaced by the new clients to another FA, or

the Financial Advisory center.

Each year FA to acquire some new high-quality clients.

Least promising clients to be transferred to other FAs or Financial AdvisoryCentre.

Now FAs find 2 to 4 hours everyday for client acquisition.

Referral through existing prosperous clients.


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Question 2: Does Merrill-Lynch need Supernova to be successful or grow inthe future?

Sol: Yes, Merrill-Lynch needed Supernova to be successful or grow in the futurebecause most of the FAs before supernova didnt pay any attention to frequency

of contact-if a client called, they spoke to them. They didnt have time to make

calls to clients because they were busy dealing with clients calling them-wanting

them to fix problems they were having, hold their hands when the markets

declined, or do trades. Extra time was spent prospecting and they had to do a lotof that given the number of clients who quit.

It was hard to respond to problems quickly.

So it was essential for them to have a plan which will provide a help to them

meet the needs of the clients effectively.


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Question 3: Paint a picture of a Financial Advisors day using the Supernova process.How is this different from typical day under the old process?

Sol : In effect, under supernova client associates triaged client telephone calls, only

involving the FA when necessary. Supernova client associates also prepared Fas dailyfolders".

Each folder contained clients most recent financial plan, amendments to it, and

information on the clients family and business that the FA believed was germane to the

relationship.

This include mortgage and tax rates,realestate,insurance policies,hobbies,immediate

family and important relatives/associates and financial holding not at Merrill.

The folder supported the folder system", which enforced discipline on the FA in the

following way:

Client associates set up telephone or in-person meetings between the FA and clients,

consistent with 12-4-2.Each morning ,the FA will given the folders for clients with

whom he or she was meeting that day.

These practices accomplished four things:


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First ,they forced the FA to make good on 12-4-2 without increasing his or her

administrative burden.

Second, they ensured that he or she would have the most up-to-date information

available for the meeting.

Third, they induced folder guilt. If and FA didn't contact all the clients on the

clients on the list for that day, her client associate would have wasted time

preparing the folders.

Finally, the folder system helped to ensure that the financial plan the client andthe FA agreed to was implemented ,an occasional failure in the past according to

several FAs

Under the old process the FAs didnt pay any attention to frequency of contact-if a

client called, they spoke to them. They didnt have time to make calls to clients

because they were busy dealing with clients calling them-wanting them to fixproblems they were having, hold their hands when the markets declined, or do

trades. Extra time was spent prospecting and they had to do a lot of that given the

number of clients who quit.

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