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Treat different people differently

Alexander Cassar

CBOO at Objectway

OWINTALK | BEHIND BUSINESS, BEYOND NEWS

Audio Transcript

I would like to share some thoughts on Differentiation. What is it, and why is it important?

In plain English it simply means “Treat Different People Differently” – this is so important, that you may excuse me if I repeat it again later. Since the Industrial Revolution, businesses have prioritised standardisation as a tool for efficiency and economies of scale. But Ford’s “Any colour is good as long as it is black” is now in the distant past and a variety of choices is the norm. And a “one size fits all” approach is inappropriate – most acutely in no other industry but Wealth Management.

Wealth, and being treated like everyone else, don’t go hand-in-hand. This just doesn’t work.

High Net-worth Individuals expect privileges and exceptional treatment, and wealth managers know this very well. For centuries they have provided superb experiences to their valuable clients and have paid meticulous attention to detail in pleasing them in every possible way.

Yet most firms only differentiate between ‘High’ and ‘Ultra-high’ as value segments, now at best adding the mass-affluent layer below. And everyone is offered the same excellent experience.

Is it truly excellent? No matter how superior this client experience is, it cannot be good enough if it doesn’t consider individual background. Account for personal needs and goals, and not least – character, perceptions, and emotions. Making the client feel good is fine, but making them feel unique, uniquely understood, uniquely valued, and uniquely cared for – is the ultimate experience. This strategic goal is achievable through planning, investment, and relentless work.

You will need deep insights into individual client characteristics. This requires analytical capabilities and advanced use of data. Deploying new technologies, always seek functionality that provides you with better client data and enables smart analytical models to inform your client treatment.

Translating such insight into differentiated interactions should not be left to chance or even – to the talent of relationship managers and advisors. Data science, particularly Deep Learning-based AI, can help differentiate experiences according to countless variables, in real time. The wealth managers interacting with clients can have at their fingertips not only most relevant information, but even predictive and prescriptive prompts about best actions and offers. This ‘hybrid’ (human-with-machine) model is the latest and most promising trend in technology-enabled Wealth Management.

Client experience is the next frontier and ultimate competitive advantage. The best wealth managers enhance it with technology. Follow them – or lead in this.

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