mfea dts 2015 - marco bailetti

Operationalizing Analytics Marco Bailetti Vice President Client Insights—Franklin Templeton Investments

For Internal Use Only / Not for Distribution to the Public

MFEA | Operationalize Analytics

Marco Bailetti, VP Client Insights

Franklin Templeton

“An investment in knowledge pays the best interest.” ~ Benjamin Franklin

26 February 2015

For Internal Use Only / Not for Distribution to the Public 3

• Analytics Catalysts: Why this Matters

• Operationalize Analytics: Lessons Learned

• Contact Strategy: Analytics in Action

Agenda

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Analytics Catalysts

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Market Factors Create Need For Analytics

5

ACTIVE / PASSIVE

OUTCOME FOCUS SHIFT TO FEE

NEW COMPETITORS

CHANGES IN DISTRIBUTION

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Impact Areas & Analytics Opportunity

6

CONTACT STRATEGIES

• Customer centric approach • Efficient coverage models • Relevant & timely messages

VALUE PROPOSITION

• Beyond product & relationships • Positioning vs. Competitors • Case for Active Management

MEASUREMENT • Activity based metrics KPI • Joint accountability • Beyond gross sales

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OPERATIONALIZATION

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1. Value of Analytics is about influencing decisions

2. Meaningful measurement is key

3. Analytics is disruptive

4. The incremental tactics are powerful

5. ‘Operationalize’ Analytics for greater return

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Lessons Learned | Value from Analytics

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Operationalize Analytics

• Embedded into a core function

of the business, influencing key decisions

• Business capability vs. technology (people, process & platform)

• Trusted data & models that are

automated, managed and integrated into technology stack

WHAT IS IT

• Enables time to market as competitive advantage

• Realize value of investments in data, analytics and technology

• Shifts discussion from data debate and pilots to insights and strategic capability

WHY IT MATTERS

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1. Output should be consumable and actionable

2. Integrate into front line systems & process

3. Open collaboration with simple feedback loop

4. Leverage vendors & plan for long on-boarding

5. Minimize customization and dependencies

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Lessons Learned | Operationalization

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CONTACT STRATEGY

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Work back from single KPI: Market Share

• Assume fixed resources

• Augment sales reach with

digital channel

• Optimal # of contacts & sequence by segment

• Apply uplift modeling to

identify opportunity • Build scenario based planning

tools

• Targeted messaging & micro-

segmentation • Test & learn • Leads + insights

• Customer experience vs.

driving to sale

• Consistent and timely message across channel

RELEVANCE

Advisor Coverage | Impact with Relevance

CAPACITY MODEL

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Advisor Coverage | Focus on Uplift

‘Persuadable’, might respond if targeted

20%

80%

80%

20%

Advisors SalesTop Producers Other

TOP PRODUCER

Focus on incremental lift to increase market share and 3 year pipeline

‘Sure Thing’- going to buy

Not going to buy

Do not disturb, or else…

INCREMENTAL OPPORTUNITY

Advisors

10%

20%

20%

50%

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Advisor A Purchased Templeton BRIC Fund on Aug 1, 2011 Experienced: 4th quartile

performance -6.25% return

Advisor B Purchased Templeton BRIC Fund on Aug 1, 2013 Experienced: 1st quartile

performance 16.05% return

--- PRODUCT EXPERIENCE ---

TARGETED MESSAGING

“Congratulations on recommending the TOP QUARTILE Templeton BRIC Fund to your clients!”

Advisor Experience | First Entered Fund

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NET SALES

REL

ATIV

E PE

RFO

RM

AN

CE

(VS.

BEN

CH

MAR

K)

+ -

+

-

Happy, and taking gains

Action: retain within complex

Happy and buying more

Action: up-sell & cross sell

Action: acknowledge challenges, reinforce long term view

Not happy and redeeming Sees value, OR, about to redeem

Action: pro-actively engage, ask exploratory questions

Advisor Experience | Target The Message

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DESCRIPTIVE PRESCRIPTIVE ADDITIVE Present details of the analytics models and science up front

Hide the science, and script the message

Deliver timely themes backed with data, that can be woven into sales conversations

Deliver Insights | Additive to Conversation

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• Leverage market pressures as catalysts to adopt and execute Analytic strategies and align Marketing and Sales teams

• Value of Analytics is about decision making. Operationalization is about embedding data-driven decision into a core function

• Build data-driven contact strategy to; win with relevance, focus on the ‘persuadables’ and deliver additive insights

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Summary

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THANK YOU!

Questions for Marco