Three Steps to Kick-Start New Data Implementation

When considering new datasets or onboarding new datasets on advisors, asset managers frequently express concerns along the lines of, "I'm not even sure where to get started." Uncertainty often comes from two concerns: 1) how the data impacts day-to-day operations and 2) delivering immediate ROI. An implementation plan can alleviate these stresses and doesn't have to be complicated.

If a manager is starting from scratch, there is less friction in adopting new data because most processes and strategies would be developed with the use of data. The reality is that nearly every asset manager is fitting data into an existing distribution machine that cannot be taken offline to incorporate new datasets. One solution is to have someone in a sales enablement role design an implementation plan that integrates new data and tools into existing processes. According to a recent SS&C survey, 64% of asset managers reported not having a head of sales enablement-which speaks to the lack of maturity and formalization of the function.

Given the challenges and uncertainty of incorporating new data, there are some very achievable first steps that firms can take to immediately unlock value in a new dataset. An implementation plan should consist of three elements:

• Segmentation/targeting
  
  Using the new data to augment segmentation and targeting should be a driver of the use case for any advisor data. Your firm likely knows which types of advisors have been most successful and their common traits. To start, find a single datapoint in the new data that reflects this commonality.
  
  Our framework for segmentation-Influence, Value and Opportunity (IVO)-is not only helpful for initial segmentation but also gets better with input from disparate sets of data. For example, acquiring a new dataset-let's say SMA sales-would enable a firm to augment the V and the O by supporting a more complete picture of the Value (e.g., size and growth of the advisor's business) and the Opportunity by showcasing which asset classes an advisor has a propensity to use in various vehicles. A different dataset that details which advisors make decisions for their teams would enhance the Influence factor.

• Scorecards
  
  With the complexity of many of the datasets available today, it can be overwhelming to vet all the data points and decide which metrics to utilize first. Start by asking yourself questions about what you want to know about your distribution performance and set up a scorecard based on the new data-even if it's not complex or doesn't the new data to its fullest extent.
  
  Focus on measuring relative success over absolute success. Which territories are growing market share the most in certain product categories? What percentage of SMA producers at a given broker-dealer are we meeting with? A management scorecard not only socializes the new data, but also broadcasts the metrics that are crucial to the organization. Read our recent whitepaper, Dare to be Different - Challenge Assumptions to Optimize Distributionto learn more about the importance of custom metrics.

• Ownership
  
  Translating raw data into useful information is not an automatic process. Vendors can assist with user interfaces, analytics and reporting, but to expediate adoption within the asset manager, someone needs to take ownership of implementing the data. Sales enablement is well suited to this role, but-as mentioned earlier-the function is not uniformly defined across organizations.
  
  Even if a formal role doesn't exist to take this on, there should be a formal assignment of the ownership of making sure the data is used. Much of this responsibility will be communication-e.g., making sure IT or BI intakes the data in a format that is usable or understanding key metrics that stakeholders use to monitor performance. The owner of the implementation doesn't necessarily need to be tech-savvy, as the critical piece is ensuring someone is empowered to oversee the process and access necessary resources (CRM, data warehouses, scorecards) for implementation.

Whether adopting new data or planning for next year, firms often need a fresh start in utilizing data. The SS&C Distribution Solutions Research and Consulting team is always ready to help with implementation plans and maximize the use of your data.