Fund companies have only been marginally successful at distribution because they are more focused on gathering assets – as opposed to profits, a forthcoming kasina report indicates. Next-generation CRM (see MFMN 3/17/03) and focusing on individual business units, as opposed to the overall enterprise, are two ways firms can improve their distribution, kasina maintains.

"There is a disconnect between how firms gather data from their financial intermediaries and the how that data is analyzed and used for sales and marketing purposes," said Steven Miyao, the firm’s chief executive.

Based on interviews with 70 asset management firms, the kasina report concludes that most firms use a three-tiered approach of prospects, producers and top producers, as opposed to looking at the value and profitability of each intermediary sales partner

Preliminary data suggests that more than three-fourths, or 78% of asset management companies, do not use predictive models in their advisor segmentation schemes, while 75% don’t have an accepted and documented definition of customer relationship value across all accounts and products.

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