Leading Asset Manager - NN - Blackrock

Case Studies

Leading Asset Manager

Client Segmentation Strategy

Knadel is a trusted advisor and partner of a number of the UK’s leading asset management firms. Its extensive experience coupled with expert consultancy skills and industry knowledge, allows Knadel to create flexible solutions specifically tailored to the needs and issues of its clients.

Following a major acquisition one particular client wanted to develop a single client segmentation strategy for the merged group. This would allow it to present a combined service offering to prospective clients, differentiated in the market place and leveraging the best components of each organisations client segmentation strategy.

Business Challenge

Prior to the merger, each of the merged entities approached client segmentation very differently, resulting in entrenched views, political decision-making and stakeholder buy-in challenges.  The organisation as a whole also had limited resources available to service clients, and there was a general feeling that non-profitable clients were receiving a disproportionate amount of the limited resources available.

Solution Approach

Knadel was engaged to work with both merged firms, to complete a comprehensive analysis to determine the profitability of the current client base, and to design and conduct a comprehensive survey of representative sample clients.

A key finding identified by the survey was the characteristics clients most valued from their current service offerings.  Using this robust analysis and drawing from our own market perspectives and extensive experience, Knadel developed proposals for a combined client segmentation strategy; pragmatic criteria for establishing which clients belong in which segment, and proposals for appropriate service offerings for each client segment.

Finally Knadel held a programme of collaborative global workshops with representatives from each merged entity to review, adapt and amend our proposals to ensure agreement by both parties.

Knadel Value

Key to the success of this assignment was the robustness of the analysis Knadel conducted. Neither party could effectively challenge the analysis and its findings. Knadel quickly built the respect of both parties and was perceived as an independent advisor with considerable knowledge and a valued perspective on the market. Knadel was able to bring the parties together, suggest alternative approaches to overcome blockages and facilitate the design of solutions that both parties could see the merit of.

Outcome and Business Benefit

The project was held up in the organisation as a model example of how the two firms could come together, learn from each other and work collaboratively to offer better value to their clients.

The new client segmentation strategy was better able to marry service offerings to clients in accordance with what they valued. It was able to highlight which clients and segments were more profitable and channel limited resources accordingly. In so doing Knadel was able to reduce overall cost but at the same time enhance the client service experience.

 

 

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