This information also feeds SAS's Marketing Automation Solution for data mining, predictive modeling, performance measurement and campaign management, including audience selection criteria for various campaigns and back-end analysis.
At this point, says Metz, the CRM data mart could provide basic transaction data on current clients—what products clients owned, account numbers and a little bit of demographic data. This information was supplemented with off-the-shelf demographic data, as well as with information from other systems within the company, such as assets under management. What was missing, however, was the investor attitudinal component—the firm didn't understand its investor profiles and preferences.
So Metz and Dougan commissioned a piece of proprietary research, and from that they identified six distinct types of investors, explains Metz. Using this information, Dougan built a predictive model to help financial advisors easily determine a client's style of investing.
Financial services companies traditionally segment their clients on very basic, commonly acquired dimensions such as assets and age, according to Metz. An example might be selecting high net worth investors and then further segmenting by age—for example, high net worth investors who are married and over the age of 50. Based on these dimensions all investors within this segment look the same, explains Metz. However, she points out that "not everyone who's 55 and has a million dollars in assets under management has the same types of investing preferences and styles."
By overlaying investor-style data, Metz and Dougan identified and prioritized six different types of Morgan Stanley investors. This knowledge has allowed the firm to focus its communications and service delivery to certain types of investors.
The firm's 2002 IRA Rollover campaign is one example. Rather than mail its entire base, as it had in the past, a predictive model was used to select the appropriate audience of investors from its CRM data mart. This list of households was then sent to the financial advisors for follow-up by mail or phone.