1. Segment-Specific Value Propositions
While most institutions do some kind of segmentation of their client base into affluent, high-net-worth and ultra-high-net-worth categories, the top performers take it further, creating more nuanced segmentations and creating dedicated models tailored to each while avoiding excess products and complexity.
2. Enforce Strategic Pricing
In addition to clearly defined models, the most successful wealth managers use stand firm on pricing and price "aggressively." Doing so helps them generate as much as 17 percent more revenue than other firms, on average. That bar also weeds out non-target prospects.
5. Measure and Manage Profitability
Eighty-nine percent of the firms analyzed by BCG were able to measure revenues per relationship manager, but only three percent monitored managers’ profit contribution. The top performing firms were much more likely to measure profitability, and do so along multiple lines, including the client, the product and the relationship managers. Higher performing firms looked at profitability as a more accurate gauge of their business success than revenues. BCG said the top performers have achieved lower costs relative to assets and liabilities.