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#AskNetworkSommelier
#Strategy
#Business #Intelligence and Customer #Segmentation Drive New
#Revenue
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+Disclosures
The following material is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument. The information here should also
not be used or relied upon for legal, tax and investment advice. Please consult your attorney, tax advisor or financial advisor for further consultation. The views
discussed here may not be appropriate for all investors.
Please conduct your own due diligence and research before conducting any of the strategies discussed here. Any forecasts and charts contained
here are for illustrative purposes only and should not be relied upon as advice or interpreted as a
recommendation.
+Agenda
Relevant Audience?
80/20 Rule revisited
Ask yourself 3 questions
Existing Customer Mapping Hobbies and Interests Product/Service
$30M Net Worth Case Study
Taking the Power of 80/20 Rule one step further
Conclusions
Questions?
+Relevant Audience?
Owners, Founders and CEO’s of: Privately held businesses (NOT public companies): Private Equity, Hedge Funds, Real Estate, Venture Capital or
M&A firms Independent Registered Investment Advisors, Insurance,
Asset/Money Managers, Property and Casualty, CPA’s, Trust and Estate Law firms.
Non Profit Organizations
Who: Have AUM > $200M or clients > 100 Want to grow their business strategically Deal with Ultra High Net Worth Investors (> $30M
Net Worth)
+The rest of this presentation is a total waste of your time, if you were not listed on the
previous page
+80/20 Rule Revisited
Most small-mid sized firms don’t have this macro view
Total Revenu
e Potenti
al
Existing Revenu
e to Firm
Estimated Net Worth
Strength of
Relationship
Other factors
zip code, etc.
Client 1 $100,000
$15,000 $10M
Client 2 $500,000
$100,000
$30M
Client 3 $100,000
$20,000 $10M
Client 20 $40,000 $10,000 $5M
Client N $54 ? <250k
N = 100
Random examples and the numbers do not represent real customers
+80/20 Rule Revisited
What does your firms 80/20 look like?
Total Revenu
e Potenti
al
Existing Revenu
e to Firm
Estimated Net Worth
Strength of
Relationship
Other factors
zip code, etc.
Client 1 $100,000
$15,000 $10M
Client 2 $500,000
$100,000
$30M
Client 3 $100,000
$20,000 $10M
Client 20
$40,000 $10,000 $5M
Client N $54 ? <250k
N = 100
Random examples and the numbers do not represent real customers
80% of firm revenue comesfrom top 20 clients
+Before proceeding further
You hire interns or work with others in firm
Total Revenu
e Potenti
al
Existing Revenu
e to Firm
Estimated Net Worth
Strength of
Relationship
Other factors
zip code, etc.
Client 1 $100,000
$15,000 $10M
Client 2 $500,000
$100,000
$30M
Client 3 $100,000
$20,000 $10M
Client 20 $40,000 $10,000 $5M
Client 21
? ? ?
Client N $54 ? <250k
N = 100
Random examples and the numbers do not represent real customers
Not suggesting you ignorethe other 80 clients!
+1st Question
So how do you decide on who to take to golf?
Total Revenu
e Potenti
al
Existing Revenu
e to Firm
Estimated Net Worth
Strength of
Relationship
Other factors
zip code, etc.
Client 1 $100,000
$15,000 $10M
Client 2 $500,000
$100,000
$30M
Client 3 $100,000
$20,000 $10M
Client 20 $40,000 $10,000 $5M
Client N $54 ? <250k
N = 100
Random examples and the numbers do not represent real customers
Clients 1 and 3 have exactsame estimated net worth
+2nd Question
Who would you to take to golf now, and why?
Total Revenu
e Potenti
al
Existing Revenu
e to Firm
Estimated Net Worth
Strength of
Relationship
Other factors
zip code, etc.
Client 1 $100,000
$15,000 $10M
Client 2 $500,000
$100,000
$30M
Client 3 $100,000
$20,000 $10M
Client 20 $40,000 $10,000 $5M
Client N $54 ? <250k
N = 100
Random examples and the numbers do not represent real customers
Let’s say you have a choiceto take one client to golf
between Clients 1 and 2, thistime, with different net worth's
+3rd Question
Typically other same (or higher) net worth individuals
Total Revenu
e Potenti
al
Existing Revenu
e to Firm
Estimated Net Worth
Strength of
Relationship
Other factors
zip code, etc.
Client 1 $100,000
$15,000 $10M
Client 2 $500,000
$100,000
$30M
Client 3 $100,000
$20,000 $10M
Client 20 $40,000 $10,000 $5M
Client N $54 ? <250k
N = 100
Random examples and the numbers do not represent real customers
Who does a $30M net worth individual
usually hang out with?
+Existing Customer Mapping – Hobbies and Interest
What does your entire firms customer mapping look like?
Golf Cars Fashion
Charity
Art
Wine
Other
Client 1 X X
Client 2 X X X
Client 3 X X
Client 20
X X X X
Client N X
N = 100
Random examples and the numbers do not represent real customers
+Existing Customer Mapping – Hobbies and Interests
Resource planning, budgeting and events strategy
Golf
Cars Fashion
Charity
Art Wine Other
Client 1 X X
Client 2 X X X
Client 3 X X
Client 20
X X X X
Client N X
N = 100
Random examples and the numbers do not represent real customers
Here is your nextgolf outing group
+Existing Customer Mapping – Product/Service
Cross selling opportunities as well as new product development
Product/Service
1
Product/Service
2
Product/Service
3
Product/Service
4
Total Revenue Potential
Client 1 $5,000 $1,000 $9,000 0 $100,000
Client 2 $100,000
0 0 0 $500,000
Client 3 $10,000 0 $10,000 0 $100,000
Client 20 $5,000 0 $5,000 0 $40,000
Client N ? ? ? ? ?
N = 100
Random examples and the numbers do not represent real customers
+$30M Net Worth Case StudyWorking with four AdvisorsOwns:
Private Business
Real Estate
Other Holdings
+Clients View ($30M Net Worth)
Client Cash; 3.5; 12%
Advisor1; 6; 20%
Advisor2; 1.5; 5%
Advisor3; 2.5; 8%
Advisor4; 2.5; 8%
Real Estate Holdings; 3;
10%
Business Private Stock Value; 10; 33%
Other; 1; 3%
Random examples and the numbers do not represent real customersAdvisors 1-4 are dealing with money management
Asset Class, $M’s, % Market Share of Total Net Worth
Advisor 1, Manages $6M in AUM & has a 20% market share of total client net worth
+Advisor View ($30M Net Worth)
Equity; 4.5; 15%
Bonds; 2; 7%
Real Estate; 1; 3%
Alternatives; 1.5; 5%
Cash; 1.5; 5%
Hedge Funds; 1;
3%Other; 1;
3%
None Liquid, 17.5, 59%
Asset Class, $M’s, % Market Share of Total Net Worth
+Realistic Ways of Growing the Business (1)
Advisor1; 6; 20%
Competing with 3 Other Advisors, 6.5, 22%
Will never get access; 17.5; 58%
Double the business by removing other advisorsRandom examples and the numbers do not represent real customers
+Realistic Ways of Growing the Business (2)
Advisor1; 6; 20%
Competing with Other Advisors; 6.5; 22%None Liquid, 17.5, 58%
Adding strategies that help clients business & real estate needsRandom examples and the numbers do not represent real customers
+Here comes the secret sauce!Don’t tell anyone
+Remember Client 2?
Where Business Intelligence & Strategy can play a powerful role
Total Revenu
e Potenti
al
Existing Revenu
e to Firm
Estimated Net Worth
Known UHNW
Connections
Other factors
zip code, etc.
Client 1 $100,000
$15,000 $10M
Client 2 $500,000
$100,000
$30M 10
Client 3 $100,000
$20,000 $10M
Client 20 $40,000 $10,000 $5M
Client N $54 ? <250k
N = 100
Random examples and the numbers do not represent real customers
We asked before who does a $30M net worth client know?
+Taking the Power of 80/20 Rule one step further
Now who are you interested in meeting?
Relationship
Strength of relationship
Estimated Net Worth
Other Factor
s
Client 2.1 Social Strong $30M
Client 2.2 Business Weak $30M
Client 2.3 Business Weak $40M
Client 2.4 Social Weak $50M
Client 2.5 Business Strong $100M
Client N ? ? >$30M
N > 5
Random examples and the numbers do not represent real customers
Client 2 social & businessnetwork
+Previous Employers, Clients and Strategic Partners
+Conclusions? This might not make sense for every firm.
It does NOT work with commoditized products/services/businesses(specially if you have one product/service) Can be very powerful with Niche Markets
The process requires significant investment, time and effort to deploy correctly.
Existing Client Mapping exercise should be completed first.
Strategy is critical, what are you trying to accomplish?
A review of existing product and services required.
Data alone does not suffice. Its what you do with the information that matters.
Most powerful results in luxury space, >$30M net worth
+Other Useful Data Sources (>$30M)
+Other Useful Data Sources (<$30M)
+Other Suggested Resources
+
+Head of Business Intelligence
+Have Questions?
How can I be of help? Contact me for an initial phone conversation
Contact Details: Amir Homayoun Rafizadeh 312-725-3635 Twitter @wadvisor www.linkedin.com/in/wadvisor
+Reminder - Relevant Audience?
Owners, Founders and CEO’s of: Privately held businesses (NOT public companies): Private Equity, Hedge Funds, Real Estate, Venture Capital or
M&A firms Independent Registered Investment Advisors, Insurance,
Asset Managers, Property and Casualty, CPA’s, Trust and Estate Law firms.
Non Profit Organizations
Who: Have AUM > $200M or clients > 100 Want to grow their business strategically Deal with Ultra High Net Worth Investors (> $30M
Net Worth)
+Leave you with this
