What hedge fund managers can learn from Amazon?
February 9, 2013
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Hedge fund managers that are looking to boost fund investment should be looking towards adopting Amazons ability to use big data and manage customer relationships to increase growth, innovation and productivity. The current advertising restrictions in place for hedge funds means that hedge fund managers need to be savvier in attracting and retaining investors to improve investment opportunities, mimicking Amazons ability to create strong one-to-one relationships and track, analyse and distribute customer data will help to increase opportunities for growth.
Although Amazon is an online shopping portal with no face to face contact with their customers, through data collection they are able to discover their customers likes, dislikes and how and when they shop. Using this data they have been able to create unique shopping experiences that encourage customers to increase spending through add-on products and recommendations.
By focusing their attention on the customer experience and targeting returning customers Amazon have been able to increase their market growth. This is because returning customers spend an average of 67% more than new customers. It is therefore vital that hedge fund managers adopt this strategy and look towards targeting existing clients for new investment opportunities rather than focusing marketing resources on attracting potential investors.
The good thing is that returning clients are also easy and cheaper to market to as they are already familiar with your company and the services you offer. As attracting interest in hedge funds is largely generated by word of mouth (due to advertising restrictions) building strong relationships with clients will allow hedge fund managers to turn these clients into loyal, brand ambassadors helping to improve growth and cutting down on marketing costs.
Hedge fund managers that wish to develop stronger relationships with both current and prospective clients should look towards implementing CRM for wealth management software that will help to provide better transparency, reporting and confidence when interacting with clients. Hedge fund software such as CRM for wealth management enables hedge fund managers to track all interactions with clients, as well as regulators and other individuals, from email and calls to website activity and meetings. Managing communications on one centralised platform allow managers to view complete client history data given them the ability to deal with clients confidentially and identify new investment opportunities. Tracking data via hedge fund software will also help to identify processes that can be streamlined such as email marketing and reporting, helping to improve productivity.
By taking a leaf out of Amazon’s book and focusing on building one-to-one customer relationships and using scalable hedge fund software to support and streamline client management hedge fund managers can maximise investment opportunities, growth and productivity.