Wednesday, July 31, 2019
Supernova refers to a new way to manage client relationships that originated in one of Merill LynchÃ¢â¬â¢s Indianapolis offices. The first preparation before the process of Supernova was establishing relationship with client in the area of client satisfaction; The frequency and quality of contact Rapid response to problems Attention to details The changes required to implement the Supernova process includes Maintaining minimum contact time Reducing the number of customers Folder system Through the Supernova process, FAs must maintain minimum contact time which is the 12-4-2 which is 12 monthly contacts of which 4 were portfolio reviews and 2 were face-to-face meetings. Besides that, FAs would have to segment the number of customers. They have to rank their clients according to revenue generation, assets, favour of doing business with and etc. Most of them decided to reduce their clients to 200, important family or business associates, clients described as necessary. The FAs would have to implement Folder system that was done by the client associates. This is to provide systematic approach in FAs duties which is consistent with the Supernova process. As for the company, they may need to increase workforce at the Financial Advisory Center as many less promising clients are being let go by the FAs. There are several risks in this Supernova process. The first risk is that the FAs jeopardize the Supernova Ã¢â¬Å"brandÃ¢â¬ in that their clients would not be as satisfied as those of complete adopters. Second, Supernova advocates agreed that a failure to fully adopt the program meant that its benefits for FAs such as improved compensation and quality of work life would not be enjoyed. Third, when service promises were made to clients by FAs who intended to fully adopt Supernova but never completely implemented the program. Fourth, many traditional FAs associated the new approach (gathering and allocation) with Supernova. Fifth, the FAs felt that the CRM software that was used no doubt is the best out there but itÃ¢â¬â¢s a complex solution which may be difficult to be used by the FAs. The potential benefits in the Supernova process includes customer retention improved communication better organized FAs The customer retention is essential towards both FAs and the company. Once the customers are being identified, they are kept abreast and updated by their FAs. This served as a platform for both the customers and the FAs to have better bonding. The communication between the FAs and the customers improved as customers would definitely be sure to receive a call at least 12 calls for a year. Customers would also receive quick response to any problem that may arise. The FAs learnt to be more organized and be systematic through the folder process which is consistent to the implemented 12-4-2 program.