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Prepared By:

Chandrachur Pan

Deepak Kumar

Babita Poddar

Kumaresh Kar

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Founded in 1907.

One of the biggest financial Management and advisoryfirm in America with 15,753 register financial advisor.

FINANCIAL ADVISOR ADVANTAGE. High Amount of incentive on every business(Private client group).

A percentage of the revenue generated from commission forbuying and selling financial products in a client account as high as40% of the amount charged to the client.

A percentage of the revenue generated from annuitized, or fee-

based accounts in which a client didnt pay a trade securities, butwas annually charged a small percentage of the assets.

FAs have full freedom create their own work process to help theirclients.

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MERRILL LYNCH PVT. CLIENT GROUPFIELDORGANIZATIONSTRUCTURE:

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1970s- Partial deregulation in stock broking.

Under deregulation new firm entered into the stock market withdifferent service offering (Discounters).

BY the year of 2000 the market share of Discounters is bigger

than the market share of Full-line brokers.

To protect their market share there was a strong need of goodcustomer service. Which was a problem in Merrill Lynch.

PROBLEMS:

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Average Merrill FAs has 550 clients.

Deterioration in the following:

The frequency and the quality of contact

Rapid response to problems.

Attention to details.

Most of the FAs work with a Assistant, even

then it became very hard for them to give

proper customer support to all their clients.

PROBLEMS:

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Segmentation in client base in term value

addition by the client to the business.Rob Knapp:

Father of Supernova. Knapp was the head ofMerrill Lynch in Mid-West district.

In 1995 Knapp had a good year in revenueterms, but his district ranked last in clientsatisfaction among 32 districts in USA.

According to Knapp:The objective of Supernovais to create the ultimate client experience.

SUPERNOVA:

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Supernova

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SUPERNOVA: 12-4-2Supernova

A supernova financial advisor had

12 Monthly contacts.

4 Portfolio reviews.

2 Face-to-face meetings.

Need Segment

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Segmentation

Spread sheet model developed to segment client:Each FA to have only 200 Client

Criteria:

$ 1 million in Annualized assets or

$ 10 K in annual production fees.Key Findings of Segmentation:

33% of Clients generated 89% Business

Action on Findings:

Retain 33% Clients (Primary Clients)Retain Important Family or Business Associates.

Retain those who are part & parcel of Primary Clients.

The Ratio was found to be 3: 1.

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Organization

Supernova Client Associates Job:

Preparation Of Daily Folders

Preparation of Reports & action Plan

Interaction with Clients if FAs presence was not legally binding

FAs Involvement Folder System

Folder Guilt

The Super Nova Service Promise1. Multi Generation Financial Plan in place

2. FA Contact at least 12 Times in 1 Year

3. Rapid response (Heard within 1 Hour, Problem addressed within 24 Hours)

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Acquisition

More Time to acquire Valuable Clients

Good service to existing Clients Generating Word of

mouth Quality Referrals

Satisfied Clients Mean More Business Prospects

More calls & less Sales Pitch help generate Morebusiness

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The Road map

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The Road map

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The Road map

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Thank You