Best Financial Services Inc. is faced with the following critical issues.
• How to identify new customers and turn them into long term permanent customers.
• Making a marketing plan which will target new customers.
• Retain the top customers (10% of the customers hold over 50% of the total assets)
• Achieve Linda’s goal to retire in 10 years and the future growth of the company
• Should match and meet the requirements of Best Financial Services Inc.’s mission statement and vision.
• Should be able to attract new customers.
• Should maintain existing customers.
Best Financial Services Inc. has the following options available.
1- Hiring a New Advisor
By hiring a new advisor, it will decrease Linda’s workload and give her more time to spend with her family as she gives her family equal importance. However, hiring a new advisor is advisable for this firm if he is able to sell $800,000 of mutual funds per year. Even if the new advisor has the same vision and work ethics as Linda, the profits he generates will not be sufficient enough for Linda’s initial plan to retire in 10 years, but having a young professional will make the transition easier, and the new advisor will also be helpful in attracting new customers.
2- Buy a New Block of Business and Sell a Block
Best Financial could sell half of its existing block of clients that have assets under 20k and buy the block of clients Jeff Mitchell is selling. By selling clients who have investments under 20k will allow Best Financial to eliminate low profitability clients, and this way it will not waste its time and resources on them, rather they will now have more times and resources to focus on their new and prospect long term clients. This option will help Best Financial to increase its assets.
3- Treating clients depending on their profitability
Linda maintains a relationship with too many families, and this leads to her not devoting enough time to customers with high