Standard&Poors Presentation
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STANDARD & POOR’S FINANCIAL COMMUNICATIONS CONJOINT ANALYSIS OF Newsletter OnDemand
Sheila FarrarJiten GoyalChristopher PowersNarayanan RamanPeyton Williams
A collaboration of:
ABOUT S&P FINANCIAL COMMUNICATIONS
• A division of McGraw-Hill Education• Leading provider marketing and communications solutions
for the financial services industry– Mutual Funds– Banking– Retirement– Brokerage– Insurance
The McGraw-Hill Companies
Financial Services Media
Newsletter OnDemand
• A web-based newsletter development system for financial advisors
• Allows advisors to maintain mailing lists and stay in contact with their clients through regular newsletter emails
• Provides:– Access to a library of articles on
five different financial topics– Ability to customize the entire
appearance of the newsletter– Monitoring capabilities to see
which users read the newsletters
PROJECT OBJECTIVES
OBJECTIVE 1 – Identify Optimal Product DesignUsing conjoint analysis, determine what combination(s) of product features and attributes would have the most sales potential.
OBJECTIVE 2 – Marketing Strategy Identify opportunities for specific targeting of financial advisors based on demographic and/or behavioral profiles
DATA COLLECTION
Target: Financial Advisors Contact Method: Blasted 4000 emails with link to Qualtrics
survey Survey Design:
1. Psychographic & Behavioral (9) • How much do advisors value client communication?• What content categories are most important?• Extent of their marketing activities
– How much time/resources do advisors spend on marketing?• Attitudes surrounding newsletters
– Do clients prefer e-mail or printed material?– How important is compliance?
2. Conjoint Cards (16)3. Demographics (11)
• Age, Gender, Ethnicity, #clients, yrs experience
CONJOINT ANALYSIS – PRODUCT ATTRIBUTES AND FEATURES
Price $250 $350, $550 $750
Brand Standard &Poor’s McGraw-Hill FC OnDemand Peter Montoya
Email Reports (Sent, Opened, Failed) Included Not Included
Customization Level• Customized: Advisor selects style and articles for each newsletter• Pre-set: Several style options offered. Advisor given list of suggested articles monthly• Automated: Three mailing list categories. Preselected articles automatically sent
monthly
BIG PICTURE –LOW OVERALL PRODUCT APPEAL
# Answer Response %
1 Not at all Likely 64 61%
2 2 13 12%
3 3 11 10%
4 4 11 10%
5 5 5 5%
6 6 1 1%
7 7 0 0%
8 8 0 0%
9 Very Likely 0 0%
Total 105 100%
Price: $250
Brand: FC OnDemand
Email Report NOT Included: No reports on email sent, failed emails, and email opens.
Pre-Set Newsletters. You select from a variety of newsletter templates, which will include your contact information and personal settings such as a picture and logo. Each month you receive a list of suggested content. You chose the content from this list and send the newsletter to your clients.
Sample Card
Sample Card - Results
Surveys Sent 4214 Responses Received170 Responses Fully
Completed96 Took longer
than 343 seconds to complete
47
ANALYSIS FRAMEWORK
Conjoint Analysisa. Overall Modelb. Segmented Model
Demographic Analysis
CONJOINT ANALYSIS – OVERALL MODEL
Attribute Level Preferences
• Price – Prefer low price
• Brand - S&P most preferred followed by MH
• Email Reports – Want reports
• Level of Customization – Fully customizable preferred!
• Consistent across most of the segmented models
Unstandardized
Coefficients p Significant? B
(Constant) 2.86 0.00000 YES$350 -0.11 0.55934 NO$550 -0.50 0.00619 YES$750 -0.64 0.00048 YES
PetMon -0.13 0.48358 NOFCOnD -0.26 0.15285 NOSandP 0.31 0.08529 YESRepInc 0.48 0.00022 YESPreset -0.48 0.00263 YES
Automated -0.80 0.00001 YESDependent Variable:
PREF Selecting only cases
for which TTC >= 343
R Square 7.9%Adjusted R Square 6.5%Sig. 0.0
ConstantsPrice: $250Brand: McGraw-HillReport: Not IncludedCustomization: Custom
CONJOINT ANALYSIS – OVERALL MODEL
Relative Attribute Preferences
• Customization Level – First!
• Price and Brand – Not much difference in preference levels
• Great variability noticed among segmented models
CUSTOMIZATION LEVEL 32%
PRICE 26%
BRAND 23%
REPORTS 19%
Q: How many clients do you serve?
CONJOINT ANALYSIS – SEGMENT LEVEL ANALYSIS
Q: How long have you been a financial advisor?
Relative Importance
1 - 4 years >10 years
Price 20% 26%
Brand 40% 22%
Report 20% 15%
Customization 20% 37%
Relative Importance
<50 51-100 101-250 251 +
Price 23% 16% 33% 29%
Brand 30% 33% 16% 16%
Report 22% 11% 19% 17%
Customization 24% 39% 32% 38%
DEMOGRAPHICS
Age Years as financial advisor
•78% Male•95% Caucasian
Client communication is the most important thing you can do to build and sustain your business.
Today, clients not only want more communication, but they also want higher quality information
PSYCHOGRAPHICS
Busi
ness
Invest
ing/E
conom
y
Pers
onal Fi
nance
Reti
rem
ent
Sta
ndard
& P
oor'
s M
ark
et
Com
menta
ry
0
10
20
30
40
50
60
70
80
9
75
16 1811
Content Preference
PSYCHOGRAPHICS
Develop prototypes
Conduct focus groups
Learn about compliance challenges
Refine Customization wording Use exploratory data to refine current
survey for a future conjoint study targeting existing FC clients
RECOMMENDATION 1: CONDUCT EXPLORATORY RESEARCH
RECOMMENDATION 2: OPTIMAL PRODUCT DESIGN
# Answer Response %
1 Not at all Likely 45 43%
2 2 12 11%
3 3 9 9%
4 4 4 4%
5 5 8 8%
6 6 10 10%
7 7 12 11%
8 8 4 4%
9 Very Likely 1 1%
Total 105 100%
Price: $250
Brand: Standard & Poor's
Email Report Included: You receive reports on email sent, failed emails, and email opens.
Custom Newsletters: You design the layout, choose the content, and send the newsletters to your clients. Your contact information and personal settings such as a picture and logo are automatically pulled in
Q: How many clients do you serve? Q: How long have you been a financial advisor?
RECOMMENDATION 3: PRODUCT POSITIONING
Young more, inexperienced advisors rely heavily on Brand. Higher lifetime value
Established advisors prefer Price and Customization
Relative Importance
1 - 4 years >10 years
Price 20% 26%
Brand 40% 22%
Report 20% 15%
Customization 20% 37%
Relative Importance
<50 51-100 101-250 251 +
Price 23% 16% 33% 29%
Brand 30% 33% 16% 16%
Report 22% 11% 19% 17%
Customization 24% 39% 32% 38%
Busi
ness
Invest
ing/E
conom
y
Pers
onal Fi
nance
Reti
rem
ent
Sta
ndard
& P
oor'
s M
ark
et
Com
menta
ry
0
10
20
30
40
50
60
70
80
9
75
16 18 11
Content Preference
RECOMMENDATION 4: CONTENT
Editorial should focus content on investing / economy
RECOMMENDATION SUMMARY
1. Optimal Product Design Price: $250 Brand: Standard & Poor’s Reports: Include Customization: Custom
2. Conduct Further Exploratory Research Develop prototypes Conduct focus groups Learn about compliance challenges Refine Customization wording Conduct future conjoint study targeting existing FC clients
3. Product Positioning Young more, inexperienced advisors rely heavily on Brand.
Higher lifetime value Established advisors prefer Price and Customization
4. Content should focus more on investing/economy