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SUPERNOVA

• Name given to a new way to manage client relationships that originated in one of Merrill Lynch’s
Indianapolis offices.

• A strategy set at the top.

• Father of SUPERNOVA- “Rob Knapp”.


Merrill Lynch’s Mid-West District.
Process of Supernova
• Supernova was spread through road show presentation.
• Knapp used two part pitch to “Sell” supernova.
1. The ultimate client experience.
2. Plan process and discipline.
 It was service orientated not transaction orientated.
3 Critical Aspects SuperNova Promises

1 • 12 monthly contact You will have a multi-


• Quarterly portfolio report
12-4-2 generation financial plan in
Frequency and quality of • Biannual face to face
meeting place.
contact
• Rank by revenue generation
• Rank by assets
2 Segmentation
• Willing to work with
• Reduce 550 to 200 clients You will be contacted by
Rapid response to
your FA at least 2 times
problems • Client associates support
Organization • Folder system
every year
• Reduce administrative work
3 You will receive rapid response,
hearing from us in 1 hour, and
Attention to details • Using referrals
Acquisition • Spend 2 ~4 hours to having
acquire new customers
resolutionwithin24hours
12-4-2
• Was the supernova description of what client’s minimum annual
contact with their financial advisor should be :
• 12 monthly contacts
• 4 were portfolio reviews
• 2 were face-to-face meetings
• Predicated upon the completion of a financial plan for the client at
the beginning of the relationship.
ORGANIZATION

•Supernova provides administrative support.

•Administrative support through Client Associates by way of daily Folder System.

•Each folder clients details.

 Service promise
• You will have a multi generation financial plan.
• You will be contacted by FA at-least 12 times every year.
• Response within one hour and resolution within 24 hours
ACQUISITION
(The final part of supernova)

•Each year FA to acquire some new, high-quality clients .

•Least promising clients displaced by new clients to another FA,


or Financial Advisory Canter .

•FA find 2 to 4 hours everyday for client acquisition, which FAs found
more adequate.
Why FAs should adopt Supernova

• Increased compensation

• Greater client loyalty

• Greater level of organization of work

• Payment by Merrill Lynch for those clients sent to the center


Challenges to implementation
1. Economic backdrop
2. Politics and Recognition
3. Organizational Leverage Points
4. Follow Up/supports
5. Client expectation
6. Changing Role of some FAs
7. Misinterpretation
8. METRICS
9. FA Nature
10. Inclusion of client associates