Business Intelligence and Customer Segmentation Drive New Revenue

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#AskNetworkSommelier

#Strategy

#Business #Intelligence and Customer #Segmentation Drive New

#Revenue

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+Disclosures

The following material is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument. The information here should also

not be used or relied upon for legal, tax and investment advice. Please consult your attorney, tax advisor or financial advisor for further consultation. The views

discussed here may not be appropriate for all investors.

Please conduct your own due diligence and research before conducting any of the strategies discussed here. Any forecasts and charts contained

here are for illustrative purposes only and should not be relied upon as advice or interpreted as a

recommendation.

+Agenda

Relevant Audience?

80/20 Rule revisited

Ask yourself 3 questions

Existing Customer Mapping Hobbies and Interests Product/Service

$30M Net Worth Case Study

Taking the Power of 80/20 Rule one step further

Conclusions

Questions?

+Relevant Audience?

Owners, Founders and CEO’s of: Privately held businesses (NOT public companies): Private Equity, Hedge Funds, Real Estate, Venture Capital or

M&A firms Independent Registered Investment Advisors, Insurance,

Asset/Money Managers, Property and Casualty, CPA’s, Trust and Estate Law firms.

Non Profit Organizations

Who: Have AUM > $200M or clients > 100 Want to grow their business strategically Deal with Ultra High Net Worth Investors (> $30M

Net Worth)

+The rest of this presentation is a total waste of your time, if you were not listed on the

previous page

+80/20 Rule Revisited

Most small-mid sized firms don’t have this macro view

Total Revenu

e Potenti

al

Existing Revenu

e to Firm

Estimated Net Worth

Strength of

Relationship

Other factors

zip code, etc.

Client 1 $100,000

$15,000 $10M

Client 2 $500,000

$100,000

$30M

Client 3 $100,000

$20,000 $10M

Client 20 $40,000 $10,000 $5M

Client N $54 ? <250k

N = 100

Random examples and the numbers do not represent real customers

+80/20 Rule Revisited

What does your firms 80/20 look like?

Total Revenu

e Potenti

al

Existing Revenu

e to Firm

Estimated Net Worth

Strength of

Relationship

Other factors

zip code, etc.

Client 1 $100,000

$15,000 $10M

Client 2 $500,000

$100,000

$30M

Client 3 $100,000

$20,000 $10M

Client 20

$40,000 $10,000 $5M

Client N $54 ? <250k

N = 100

Random examples and the numbers do not represent real customers

80% of firm revenue comesfrom top 20 clients

+Before proceeding further

You hire interns or work with others in firm

Total Revenu

e Potenti

al

Existing Revenu

e to Firm

Estimated Net Worth

Strength of

Relationship

Other factors

zip code, etc.

Client 1 $100,000

$15,000 $10M

Client 2 $500,000

$100,000

$30M

Client 3 $100,000

$20,000 $10M

Client 20 $40,000 $10,000 $5M

Client 21

? ? ?

Client N $54 ? <250k

N = 100

Random examples and the numbers do not represent real customers

Not suggesting you ignorethe other 80 clients!

+1st Question

So how do you decide on who to take to golf?

Total Revenu

e Potenti

al

Existing Revenu

e to Firm

Estimated Net Worth

Strength of

Relationship

Other factors

zip code, etc.

Client 1 $100,000

$15,000 $10M

Client 2 $500,000

$100,000

$30M

Client 3 $100,000

$20,000 $10M

Client 20 $40,000 $10,000 $5M

Client N $54 ? <250k

N = 100

Random examples and the numbers do not represent real customers

Clients 1 and 3 have exactsame estimated net worth

+2nd Question

Who would you to take to golf now, and why?

Total Revenu

e Potenti

al

Existing Revenu

e to Firm

Estimated Net Worth

Strength of

Relationship

Other factors

zip code, etc.

Client 1 $100,000

$15,000 $10M

Client 2 $500,000

$100,000

$30M

Client 3 $100,000

$20,000 $10M

Client 20 $40,000 $10,000 $5M

Client N $54 ? <250k

N = 100

Random examples and the numbers do not represent real customers

Let’s say you have a choiceto take one client to golf

between Clients 1 and 2, thistime, with different net worth's

+3rd Question

Typically other same (or higher) net worth individuals

Total Revenu

e Potenti

al

Existing Revenu

e to Firm

Estimated Net Worth

Strength of

Relationship

Other factors

zip code, etc.

Client 1 $100,000

$15,000 $10M

Client 2 $500,000

$100,000

$30M

Client 3 $100,000

$20,000 $10M

Client 20 $40,000 $10,000 $5M

Client N $54 ? <250k

N = 100

Random examples and the numbers do not represent real customers

Who does a $30M net worth individual

usually hang out with?

+Existing Customer Mapping – Hobbies and Interest

What does your entire firms customer mapping look like?

Golf Cars Fashion

Charity

Art

Wine

Other

Client 1 X X

Client 2 X X X

Client 3 X X

Client 20

X X X X

Client N X

N = 100

Random examples and the numbers do not represent real customers

+Existing Customer Mapping – Hobbies and Interests

Resource planning, budgeting and events strategy

Golf

Cars Fashion

Charity

Art Wine Other

Client 1 X X

Client 2 X X X

Client 3 X X

Client 20

X X X X

Client N X

N = 100

Random examples and the numbers do not represent real customers

Here is your nextgolf outing group

+Existing Customer Mapping – Product/Service

Cross selling opportunities as well as new product development

Product/Service

1

Product/Service

2

Product/Service

3

Product/Service

4

Total Revenue Potential

Client 1 $5,000 $1,000 $9,000 0 $100,000

Client 2 $100,000

0 0 0 $500,000

Client 3 $10,000 0 $10,000 0 $100,000

Client 20 $5,000 0 $5,000 0 $40,000

Client N ? ? ? ? ?

N = 100

Random examples and the numbers do not represent real customers

+$30M Net Worth Case StudyWorking with four AdvisorsOwns:

Private Business

Real Estate

Other Holdings

+Clients View ($30M Net Worth)

Client Cash; 3.5; 12%

Advisor1; 6; 20%

Advisor2; 1.5; 5%

Advisor3; 2.5; 8%

Advisor4; 2.5; 8%

Real Estate Holdings; 3;

10%

Business Private Stock Value; 10; 33%

Other; 1; 3%

Random examples and the numbers do not represent real customersAdvisors 1-4 are dealing with money management

Asset Class, $M’s, % Market Share of Total Net Worth

Advisor 1, Manages $6M in AUM & has a 20% market share of total client net worth

+Advisor View ($30M Net Worth)

Equity; 4.5; 15%

Bonds; 2; 7%

Real Estate; 1; 3%

Alternatives; 1.5; 5%

Cash; 1.5; 5%

Hedge Funds; 1;

3%Other; 1;

3%

None Liquid, 17.5, 59%

Asset Class, $M’s, % Market Share of Total Net Worth

+Realistic Ways of Growing the Business (1)

Advisor1; 6; 20%

Competing with 3 Other Advisors, 6.5, 22%

Will never get access; 17.5; 58%

Double the business by removing other advisorsRandom examples and the numbers do not represent real customers

+Realistic Ways of Growing the Business (2)

Advisor1; 6; 20%

Competing with Other Advisors; 6.5; 22%None Liquid, 17.5, 58%

Adding strategies that help clients business & real estate needsRandom examples and the numbers do not represent real customers

+Here comes the secret sauce!Don’t tell anyone

+Remember Client 2?

Where Business Intelligence & Strategy can play a powerful role

Total Revenu

e Potenti

al

Existing Revenu

e to Firm

Estimated Net Worth

Known UHNW

Connections

Other factors

zip code, etc.

Client 1 $100,000

$15,000 $10M

Client 2 $500,000

$100,000

$30M 10

Client 3 $100,000

$20,000 $10M

Client 20 $40,000 $10,000 $5M

Client N $54 ? <250k

N = 100

Random examples and the numbers do not represent real customers

We asked before who does a $30M net worth client know?

+Taking the Power of 80/20 Rule one step further

Now who are you interested in meeting?

Relationship

Strength of relationship

Estimated Net Worth

Other Factor

s

Client 2.1 Social Strong $30M

Client 2.2 Business Weak $30M

Client 2.3 Business Weak $40M

Client 2.4 Social Weak $50M

Client 2.5 Business Strong $100M

Client N ? ? >$30M

N > 5

Random examples and the numbers do not represent real customers

Client 2 social & businessnetwork

+Previous Employers, Clients and Strategic Partners

+Conclusions? This might not make sense for every firm.

It does NOT work with commoditized products/services/businesses(specially if you have one product/service) Can be very powerful with Niche Markets

The process requires significant investment, time and effort to deploy correctly.

Existing Client Mapping exercise should be completed first.

Strategy is critical, what are you trying to accomplish?

A review of existing product and services required.

Data alone does not suffice. Its what you do with the information that matters.

Most powerful results in luxury space, >$30M net worth

+Other Useful Data Sources (>$30M)

+Other Useful Data Sources (<$30M)

+Other Suggested Resources

+

+Head of Business Intelligence

+Have Questions?

How can I be of help? Contact me for an initial phone conversation

Contact Details: Amir Homayoun Rafizadeh 312-725-3635 Twitter @wadvisor www.linkedin.com/in/wadvisor

+Reminder - Relevant Audience?

Owners, Founders and CEO’s of: Privately held businesses (NOT public companies): Private Equity, Hedge Funds, Real Estate, Venture Capital or

M&A firms Independent Registered Investment Advisors, Insurance,

Asset Managers, Property and Casualty, CPA’s, Trust and Estate Law firms.

Non Profit Organizations

Who: Have AUM > $200M or clients > 100 Want to grow their business strategically Deal with Ultra High Net Worth Investors (> $30M

Net Worth)

+Leave you with this