To this end, the CRM team works with Metz and Darryl Dougan, vice president of strategic market research, to make sure client and prospect databases are built such that the firm has information at the client and household levels. This information enables it to understand things such as investor styles or preferences of investing, profitability, basic demographics and product portfolio mix.
"Ultimately, what you want to get to is some sort of equation around lifetime value of the customer, so you can understand where you should be spending your time and energy and putting the best services toward the best clients," Metz contends.
What's more, it can then overlay external data to "determine untapped potential of our existing clients," adds Dougan.
Data Mart Construction
The CRM team now had to begin to implement this vision. The next order of business was to develop an infrastructure to initially deliver customer-centric information where it would have the largest organizational impact—primarily its sales force, who are financial advisors. At the time, a national operations data mart was being built as part of a larger data warehouse infrastructure set to be turned over for production on September 11, 2001. As a resident of tower two of the World Trade Center, "We lost all our hardware and software; luckily having our data backed up, we were able to rebuild our infrastructure using this saved data and the team's knowledge of the CRM infrastructure," recalls Vice President Michael Strachan. Working offsite, Strachan and three key team members were able to coordinate and rebuild this infrastructure within two months with the help of a LAN (local area network) and other IT support staff.
The system was reincarnated as a CRM data mart. Information on customer transactions at the product-holding level-—equities, fixed income, mutual funds, managed futures, insurance—were pulled from various legacy systems and loaded into the CRM data mart. These account-level data were then transformed into customer-level data using a householding algorithm. Now, Morgan Stanley could view a client's total managed assets at the individual or household level, rather than by account.