Transcript
PRESENTATION ON CASE STUDY OF
MERILL LYNCH : SUPERNOVA
BY
S/LT SYED MUHAMMAD ALI SHAH PN
P NO 7783
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MERRILL LYNCHMERRILL 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.
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MERRILL LYNCH BEFORE MERRILL LYNCH BEFORE SUPERNOVASUPERNOVA
Financial Advisors(FA) – Merrill Lynch delivers their services through FA
Customer interaction – Only when the customer calls
Compensation for FA – Share of revenue or % of revenue generated from annuitized
How FAs work – Customer acquisition is prime goal
What others feel about Merrill’s (FAs) – Best in the market
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CUSTOMER SERVICE BEFORE CUSTOMER SERVICE BEFORE SUPERNOVASUPERNOVAThree aspects of relationship critical to
client satisfaction:1. The frequency and quality of product2. Rapid response to problems3. Attention to details( Personal Life events)
Constraints of FAs before Supernova? Poor Communications with clients Lack of time to contact clients Unprepared, Unorganized and Reactive Hard to respond to problems quickly Loss of additional business
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SUPERNOVASUPERNOVA
Why Supernova - Merrill Lynch’s 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 Merrill Lynch’s Indian-polis Office.
Origin of Supernova – It is a Idea of Rob Knapp, head 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’. What it look like? Then came………
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CLIENT RELATIONSHIP
FA INTERACTING WITH CLIENT
12-4-2 CLIENT’S MINIMUM 12-4-2 CLIENT’S MINIMUM ANNUAL CONTACTANNUAL CONTACT
12 monthly contacts w/w 4 portfolio reviews and 2 face-to-face meetings.
Problems for FAs – Large client base(avg. 550 per FA), Not organized, Time constraints,
Changes in Supernova – Financial Planning described as Segmentation Organization Acquisition
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SEGMENTATIONSEGMENTATION Appropriate number of clients – 200 per FA based
on different criteria.
Client’s minimum asset - $1 million at Merrill lynch
Choice of client through a spreadsheet model
What about other clients? – Transferred to other FAs or Financial Advisory Center – served through toll-free number
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BENEFITS
FA GIVING REWARD TO ACTIIVE CLIENT
ORGANIZATIONORGANIZATION Supernova provides “administrative support” followed
by “help getting organized”
Administrative support through Client Associates by way of daily Folder System
The Supernova service promise using 12-4-2, Segmentation, Organization guaranteed - You will have a multi financial plan in place You will be contacted by FA at-least 12 times every year Response within one hour and resolution within 24 hours
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ACQUISITIONACQUISITION Each year FA to acquire some new high-quality
clients
Least promising clients to be transferred to other FAs or Financial Advisory Center
Now FAs find 2 to 4 hours everyday for client acquisition
Referral through existing prosperous clients
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FA COLD CALLING TO CLIENTS
FA USED TO CALL RANDOM CLIENTS TO BRING THEM TO MERRILL LYNCH
PROCESS OF ADOPTING PROCESS OF ADOPTING SUPERNOVASUPERNOVA
Spread through road shows by users(FAs)
Two part pitch to sell supernova – How good it felt to be delivering “the ultimate customer experience” Plan, Process and Discipline
Support for FAs adopting Supernova: FA buy-in through road shows, persuasion by managers. Adopting supernova through segmentation, 12-4-2,
organization and acquisition
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CHALLENGS IN IMPLEMENTATIONCHALLENGS IN IMPLEMENTATION
Economic backdrop Politics and recognition Follow up/support Client expectations Changing role of some FAs Misinterpretation Inclusion of Client Associates
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DISCUSSION POINTS: OUTCOME DISCUSSION POINTS: OUTCOME
Customer focus initiatives◦ Adopting Supernova for excellent customer
service
Customer satisfaction tracking◦12-4-2 Formula
Customer retention initiatives◦ Providing improved continuous financial
service through Supernova Model
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DISCUSSION POINTS: OUTCOMEDISCUSSION POINTS: OUTCOMEService delivery design change
◦Quick response with updated financial advise
Customer understanding & service process◦Updated Folder System management
Branding initiatives◦Supernova FAs
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STRENGTHSSTRENGTHSProper work distribution Excellent customer service using 12-4-2Organized working environmentSegmentation of clients
WEAKNESSES Dependence on limited customers Increased client expectations FA freedom decreased
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LEARNING GENERATEDLEARNING GENERATEDThe Case Study tells the need of Customer Service Excellence modeling for Customer Satisfaction.
The mechanism of Serving Customer always requires improvement in service delivery design as per the need of hour.
Become innovative & pro-active to implement
service- process like Supernova with 12-4-2 contact discipline, segmentation, organized for acquisition of Customer.
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