Brokerage firms oftentimes have some customers who hold low balances, which result in high service costs and minimal return.
Firms that want to find value in their low potential customers face two challenges:
- Identify which low balance accounts have significant growth potential and allocate resources to further develop them
- Identify low potential accounts, prevent FAs from wasting valuable time and effort on trying to develop these accounts, and instead come up with an alternative means of finding value from them
In this case study, a leading brokerage firm used WealthComplete total assets estimate to segment its customer base, identify low potential customers and effectively implement a new program to offset the costs of servicing this group.
Read the case study for details.