Q&A: Affluent Investors, Robo-Advisors, Product and More!

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Q and A

In September we released the 2015 Investor Brandscape report and followed up in October with some insights shared during a live webinar, The New Generation of Investors and Advice. Download the webinar here.

We thought you may be interested in some of the questions your industry peers raised during the webinar, as the questions cover topics of interest related to the affluent investor market.


Q. What can you tell us about the types of investors who are embracing robo-advisors?
A. We observe that likely robo-advisor adopters are laser-focused on retirement savings much more so than investors who aren’t interested in automated advice services at this time. We believe this is why we see a spike in interest among Gen X investors, as the oldest in this generation turns 50 this year and retirement is taking a greater role in these investors’ financial landscape. In addition, likely adopters are also more interested in increasing investment performance, suggesting that as consumers, they are more confident in achieving a greater return from automated investment solutions compared with what they believe they can get from an advisor or achieve on their own. Continue reading

Casting the Net (Promoter Score)

In the eight years since Fred Reichheld’s Net Promoter Score (NPS) methodology burst onto the scene, it scaled the heights of fame only to be beset with accusations around its usefulness and authenticity.

In a recent issue of Marketing Research, I review the polarizing nature of NPS and suggest some new thinking to benefit those dealing with NPS today.  Like many new ideas, NPS had flaws in practice that were not immediately evident.  However, NPS provided benefits—like simplicity—too.  In the article, I explore NPS as we understand it now to uncover what about it works, and why, and for whom…and what about it doesn’t work, and why, and for whom.

I hope that you’ll see the value in this exploration, and find the article to be not only an overview of NPS’ virtues and shortcomings, but also an objective appraisal of what NPS really brings to the table.  In the article, I propose five steps that can help in deciding if NPS is right for you: Harnessing the very best of what NPS has to offer while providing practical direction and an approach which companies can use as a “reality check” throughout their own processes.

NPS still raises the ire of some and bolsters the faith of others.  My article does neither; it merely asks, “What next?” and proposes several answers that I hope you will find thought-provoking.