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Discovery Data Blog: Behavioral Intent Data Series

Three Key Reasons Why Asset Data Isn’t Enough to Drive Revenue

By Duncan MacDonald-Korth, CEO, AdvisorTarget Connect on LinkedIn
June 2, 2021

In this series, Duncan MacDonald-Korth, CEO of AdvisorTarget, shares insights on how intent data and predictive analytics can uncover financial advisor data intelligence.

Data packs, or asset data, may be considered the only insight asset managers have into what advisors buy; but they are also a systemic issue in our industry that create a unique set of problems. The following are only a subset of why accessing data like this isn't enough to drive your company's revenue.

1. Asset Manager Reputation is Negatively Impacted

Data packs have a negative impact on advisors—ask any advisor and they will complain about how data packs annoy them.

Take this typical scenario from a top producer at a wirehouse in New York City: “Like clockwork, a few weeks after I make a trade, say for an investment grade bond fund, I get calls from 30+ wholesalers in the same week trying to sell me the same product. I can’t tell you how annoying that is.”

This hurts asset managers’ reputations with advisors. Instead of buying the product, advisors shun all calls from wholesalers.

2. Retrospective Data is Limited

Asset data is, by definition, retrospective. It can tell you what has happened but gives little insight into what will happen next.

This has the effect of creating dead-end feedback loops in which wholesalers pitch advisors on the products they have already bought.

3. Intent Data is Key

While asset-level data is highly valuable, true utility exists in knowing what advisors intend to do next. This is where intent data on advisors comes into play.

Instead of guessing what an advisor might buy, or pitching them products they recently purchased, asset managers can use intent data to get into the mind of advisors and sell them products in which they are showing active interest.

For example, imagine you are a travel agent. Would you want to try to sell vacations to people who have already purchased their vacation packages, or would you rather know which destinations clients are currently researching? It’s about what’s next.

Simply put, asset data is not enough to drive product distribution. To accelerate distribution and increase AUM, asset managers need to embrace data and technology to build effective distribution tools. Data-driven relationship marketing strengthens your advisor relationships because you are using predictive analytics to execute on the best next action through all stages in the sales cycle. Empower your wholesalers with access to predictive financial advisor data intelligence.

Discovery Data Resources:
Discovery Data Blog: Using Data Science to Empower Sales and Marketing While Driving Revenue
The Data Possible Podcast: Developing Strategy With Behavioral Data
Dataset: Intent Signals