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  • 1. + #AskNetworkSommelier #Strategy #Business #Intelligence and Customer #Segmentation Drive New #Revenue
  • 2. + Disclosures The following material is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument. The information here should also not be used or relied upon for legal, tax and investment advice. Please consult your attorney, tax advisor or financial advisor for further consultation. The views discussed here may not be appropriate for all investors. Please conduct your own due diligence and research before conducting any of the strategies discussed here. Any forecasts and charts contained here are for illustrative purposes only and should not be relied upon as advice or interpreted as a recommendation.
  • 3. + Agenda  Relevant Audience?  80/20 Rule revisited  Ask yourself 3 questions  Existing Customer Mapping  Hobbies and Interests  Product/Service  $30M Net Worth Case Study  Taking the Power of 80/20 Rule one step further  Conclusions  Questions?
  • 4. + Relevant Audience?  Owners, Founders and CEO’s of:  Privately held businesses (NOT public companies):  Private Equity, Hedge Funds, Real Estate, Venture Capital or M&A firms  Independent Registered Investment Advisors, Insurance, Asset/Money Managers, Property and Casualty, CPA’s, Trust and Estate Law firms.  Non Profit Organizations  Who:  Have AUM > $200M or clients > 100  Want to grow their business strategically  Deal with Ultra High Net Worth Investors (> $30M Net Worth)
  • 5. + The rest of this presentation is a total waste of your time, if you were not listed on the previous page
  • 6. + 80/20 Rule Revisited Most small-mid sized firms don’t have this macro view Total Revenue Potential Existing Revenue to Firm Estimated Net Worth Strength of Relationship Other factors zip code, etc. Client 1 $100,000 $15,000 $10M Client 2 $500,000 $100,000 $30M Client 3 $100,000 $20,000 $10M Client 20 $40,000 $10,000 $5M Client N $54 ? <250k N = 100 Random examples and the numbers do not represent real customers
  • 7. + 80/20 Rule Revisited What does your firms 80/20 look like? Total Revenue Potential Existing Revenue to Firm Estimated Net Worth Strength of Relationship Other factors zip code, etc. Client 1 $100,000 $15,000 $10M Client 2 $500,000 $100,000 $30M Client 3 $100,000 $20,000 $10M Client 20 $40,000 $10,000 $5M Client N $54 ? <250k N = 100 Random examples and the numbers do not represent real customers 80% of firm revenue comes from top 20 clients
  • 8. + Before proceeding further You hire interns or work with others in firm Total Revenue Potential Existing Revenue to Firm Estimated Net Worth Strength of Relationship Other factors zip code, etc. Client 1 $100,000 $15,000 $10M Client 2 $500,000 $100,000 $30M Client 3 $100,000 $20,000 $10M Client 20 $40,000 $10,000 $5M Client 21 ? ? ? Client N $54 ? <250k N = 100 Random examples and the numbers do not represent real customers Not suggesting you ignore the other 80 clients!
  • 9. + 1st Question So how do you decide on who to take to golf? Total Revenue Potential Existing Revenue to Firm Estimated Net Worth Strength of Relationship Other factors zip code, etc. Client 1 $100,000 $15,000 $10M Client 2 $500,000 $100,000 $30M Client 3 $100,000 $20,000 $10M Client 20 $40,000 $10,000 $5M Client N $54 ? <250k N = 100 Random examples and the numbers do not represent real customers Clients 1 and 3 have exact same estimated net worth
  • 10. + 2nd Question Who would you to take to golf now, and why? Total Revenue Potential Existing Revenue to Firm Estimated Net Worth Strength of Relationship Other factors zip code, etc. Client 1 $100,000 $15,000 $10M Client 2 $500,000 $100,000 $30M Client 3 $100,000 $20,000 $10M Client 20 $40,000 $10,000 $5M Client N $54 ? <250k N = 100 Random examples and the numbers do not represent real customers Let’s say you have a choice to take one client to golf between Clients 1 and 2, this time, with different net worth's
  • 11. + 3rd Question Typically other same (or higher) net worth individuals Total Revenue Potential Existing Revenue to Firm Estimated Net Worth Strength of Relationship Other factors zip code, etc. Client 1 $100,000 $15,000 $10M Client 2 $500,000 $100,000 $30M Client 3 $100,000 $20,000 $10M Client 20 $40,000 $10,000 $5M Client N $54 ? <250k N = 100 Random examples and the numbers do not represent real customers Who does a $30M net worth individual usually hang out with?
  • 12. + Existing Customer Mapping – Hobbies and Interest What does your entire firms customer mapping look like? Golf Cars Fashion Charity Art Wine Other Client 1 X X Client 2 X X X Client 3 X X Client 20 X X X X Client N X N = 100 Random examples and the numbers do not represent real customers
  • 13. + Existing Customer Mapping – Hobbies and Interests Resource planning, budgeting and events strategy Golf Cars Fashion Charity Art Wine Other Client 1 X X Client 2 X X X Client 3 X X Client 20 X X X X Client N X N = 100 Random examples and the numbers do not represent real customers Here is your next golf outing group
  • 14. + Existing Customer Mapping – Product/Service Cross selling opportunities as well as new product development Product/ Service 1 Product/ Service 2 Product/ Service 3 Product/ Service 4 Total Revenue Potential Client 1 $5,000 $1,000 $9,000 0 $100,000 Client 2 $100,000 0 0 0 $500,000 Client 3 $10,000 0 $10,000 0 $100,000 Client 20 $5,000 0 $5,000 0 $40,000 Client N ? ? ? ? ? N = 100 Random examples and the numbers do not represent real customers
  • 15. + $30M Net Worth Case Study Working with four Advisors Owns: Private Business Real Estate Other Holdings
  • 16. + Clients View ($30M Net Worth) Client Cash 3.5 12% Advisor1 6 20% Advisor2 1.5 5% Advisor3 2.5 8% Advisor4 2.5 8% Real Estate Holdings 3 10% Business Private Stock Value 10 34% Other 1 3% Random examples and the numbers do not represent real customers Advisors 1-4 are dealing with money management Asset Class, $M’s, % Market Share of Total Net Worth Advisor 1, Manages $6M in AUM & has a 20% market share of total client net worth
  • 17. + Advisor View ($30M Net Worth) Equity 4.5 15% Bonds 2 7% Real Estate 1 3% Alternatives 1.5 5% Cash 1.5 5% Hedge Funds 1 3%Other 1 3% None Liquid, 17.5, 59% Asset Class, $M’s, % Market Share of Total Net Worth
  • 18. + Realistic Ways of Growing the Business (1) Advisor1 6 20% Competing with 3 Other Advisors, 6.5, 22% Will never get access 17.5 58% Double the business by removing other advisors Random examples and the numbers do not represent real customers
  • 19. + Realistic Ways of Growing the Business (2) Advisor1 6 20% Competing with Other Advisors 6.5 22% None Liquid, 17.5, 58% Adding strategies that help clients business & real estate needs Random examples and the numbers do not represent real customers
  • 20. + Here comes the secret sauce! Don’t tell anyone
  • 21. + Remember Client 2? Where Business Intelligence & Strategy can play a powerful role Total Revenue Potential Existing Revenue to Firm Estimated Net Worth Known UHNW Connections Other factors zip code, etc. Client 1 $100,000 $15,000 $10M Client 2 $500,000 $100,000 $30M 10 Client 3 $100,000 $20,000 $10M Client 20 $40,000 $10,000 $5M Client N $54 ? <250k N = 100 Random examples and the numbers do not represent real customers We asked before who does a $30M net worth client know?
  • 22. + Taking the Power of 80/20 Rule one step further Now who are you interested in meeting? Relationship Strength of relationship Estimated Net Worth Other Factors Client 2.1 Social Strong $30M Client 2.2 Business Weak $30M Client 2.3 Business Weak $40M Client 2.4 Social Weak $50M Client 2.5 Business Strong $100M Client N ? ? >$30M N > 5 Random examples and the numbers do not represent real customers Client 2 social & business network
  • 23. + Previous Employers, Clients and Strategic Partners
  • 24. + Conclusions?  This might not make sense for every firm.  It does NOT work with commoditized products/services/businesses(specially if you have one product/service)  Can be very powerful with Niche Markets  The process requires significant investment, time and effort to deploy correctly.  Existing Client Mapping exercise should be completed first.  Strategy is critical, what are you trying to accomplish?  A review of existing product and services required.  Data alone does not suffice. Its what you do with the information that matters.
  • 25. + Other Useful Data Sources (>$30M)
  • 26. + Other Useful Data Sources (<$30M)
  • 27. + Other Suggested Resources
  • 28. +
  • 29. + Head of Business Intelligence
  • 30. + Have Questions?  How can I be of help?  Contact me for an initial phone conversation  Contact Details:  Amir Homayoun Rafizadeh  312-725-3635  Twitter @wadvisor  www.linkedin.com/in/wadvisor
  • 31. + Reminder - Relevant Audience?  Owners, Founders and CEO’s of:  Privately held businesses (NOT public companies):  Private Equity, Hedge Funds, Real Estate, Venture Capital or M&A firms  Independent Registered Investment Advisors, Insurance, Asset Managers, Property and Casualty, CPA’s, Trust and Estate Law firms.  Non Profit Organizations  Who:  Have AUM > $200M or clients > 100  Want to grow their business strategically  Deal with Ultra High Net Worth Investors (> $30M Net Worth)
  • 32. + Leave you with this