What’s Trending? The Value of Client Engagement

by | Feb 24, 2021

“Please like and subscribe and leave a comment below.” This call to action will be a familiar refrain to anyone who has spent any time on YouTube. For social media influencers, engagement is everything. After all, if you don’t engage, how can you influence? Retweets, shares, likes, comments, followers and subscribers – depending on the platform – are common mechanisms for expressing appreciation and approval of content. Crucially, they enable evaluation of social media performance to determine which influencers and posts are monetized.

In “real life”, sell-side research desks must also provide relevant, value-rich research content to their target client audiences. But without the direct, immediate feedback of social media, measuring client interest and engagement is more challenging. So, how do you ensure your client interactions have value?

Target your interactions

Regulatory change has driven a fundamental shift in the sell-side’s working dynamic with the buy-side. Since the implementation of MiFID II, buy-side firms have reduced their reliance on sell-side institutions for a range of value-add services, including research, which has suffered from margin compression and declining commission pools. With interactions now generating less revenue, sales desks have to be more judicious about which interactions to pursue.

This requires a highly targeted service approach that enables you to understand your clients’ needs and “behaviours”,  which in this context includes both the ability and willingness to pay. The old adage that “you get what you pay for” doesn’t really apply here, as clients may have the budget to spend but don’t pay for all the services they’re receiving. Take corporate access, for example, where firms might be prepared to pay for meeting logistics but not the underlying content, even though the research and advice provided to prepare investors is valuable. Being more targeted with Tier1’s interest model and tagging client preferences and priorities will help ensure that resources for servicing clients are allocated efficiently and that the return on this investment is maximized.

Monetize your interactions

The sheer volume of interactions and number of client relationships that need to be managed make it easy to lose track of the value provided to clients. Information overload is a distinct possibility, on a totally different scale to even a few years ago. Technology is the key to harnessing and connecting these value-add touch points and converting them into revenue-generating actions, which can provide a valuable competitive edge.

Advanced capital markets CRM systems, integrated across the enterprise, provide a comprehensive, holistic view into the company’s proprietary data, interactions and market data, unlocking opportunities to boost revenue. Automating manual processes also means that interactions can be made more quickly and efficiently. These benefits both clients, who receive the intelligence they need, when they need it; and their sell-side providers, who will get paid by their satisfied clients, and see increased collaboration, transparency and operational efficiency across the business.

Want to hear more? Join the webinar on March 10th “Redefining Revenue: There’s a New Currency in Town” featuring Amrish Ganatra, CEO of Commcise, and Jiro Okochi, CEO of Tier1 Financial Solutions.

Contact us to learn more about Tier1’s client relationship management and workflow solutions for capital markets and investment banking, or to request a Tier1 demo.

value of client engagement

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