Grand unifying theory: Difference between revisions

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-{{a|devil|[[File:Grand unification.jpg|450px|center]]}}*[[Commercial imperative]]: to have clients coming back. Above all else.
+{{a|devil|[[File:Grand unification.jpg|450px|center]]}}*'''[[Commercial imperative]]''': to have clients coming back. Above all else. The above presumes you are in an institutional [[financial services]] world where evven small client revenues are in the hundreds of thousands of dollars per year. I am thinking specifically of [[prime brokerage]], since that’s what I know. But it ought to apply elsewhere too.
-*'''[[Commitment]]''': How to ensure clients stay with you? You indicate '''[[commitment]]''' to them.
+===[[Commitment]]===
-*Indications of [[commitment]]:
+How to ensure clients stay with you? You indicate '''[[commitment]]''' to them. Indications of [[commitment]]:
-:*expense of communication: the thick card, embossed envelope — {{author|Rory Sutherland}} (this isn’t far from reciprocity: you make an overt investment that the client can see that you wouldn’t have made if they weren’t important to you)
+*'''Expense/effort of communication''': the thick card, embossed envelope — {{author|Rory Sutherland}} (this isn’t far from reciprocity: you make an overt investment that the client can see that you wouldn’t have made if they weren’t important to you)
-:*intellectual, social commitment to clients — {{author|Robert Cialdini}}
+*'''Build interpersonal relationships''': Call them, weekly. Know who is who. Be on first-name terms with the receptionist. Don’t send [[Dear Client|mass-mailers]] to them. Ever. Invest time and capital with them. Let your operations people and their operations people get to know one another.
-:*build personalised, not cyclo-styled, interpersonal relationships with them.
+*Consider {{author|Robert Cialdini}}’s catalog of persuasive communication techniques: plenty are in play: [[reciprocity]], [[commitment]], [[scarcity]], [[social proof]].
-*'''Don’t commoditise''': These things are undermined by standardisation and commoditisation:
+===“[[Your call is important to us]]”: Avoid the appearance of commoditisation===
-:*guarantees margins tend to zero (if you have solved the risk therefore depleted the premium — if you havve automated it than anyone can automate it: your market advantage is gone)
+*'''''Don’t'' commoditise''': In your dealings with clients, avoid the appearance that they are just another customer, and you are managing to margins. Never put them in a triage queue. If you build automated products (direct market access for example), do this for ''their'' convenience, not yours, and charge accordingly. Your premium services should not be commoditised, and if it is (eg DMA) then augment it with a premium overlay of personally delivered analysis, insight, and market colour. By all means use tech below the waterline to help you deliver that personal insight, but only deliver it electronically where the client asks for that, and even there overlay ''that'' with more meta-coverage.
-:*Of course because of [[non-linear]] effects, in most cases you ''haven’t'' solved the risk; it is just that the market prices itself as if it has, because everyone labouring under the same [[modernist]] delusion that “we have comprehensively syndicated risk/banished boom and bust/reached the sunlit uplands”. Yet, [[black swan]]. and no, you cannot crunch more data and thereby anticipate [[black swan|black swans]].
+*This is not just a matter of appearances. Commoditised products have lower margins and provide less value. Standardisation and commoditisation:
+:*guarantee margins will tend to zero (if you have solved the risk you have also eliminated the premium, and in this day and age, it will vanish almost immediatey: if ''you'' have automated it then so can everyone else: your market advantage is gone)
+:*Of course because of [[non-linear]] effects, in most cases you ''haven’t'' solved the risk; it is just that the market prices itself as if it has, because everyone labouring under the same [[modernist]] delusion that “we have comprehensively syndicated risk/banished boom and bust/reached the sunlit uplands”. Yet, [[black swan]]. And no, you cannot crunch more data and thereby anticipate/solve [[black swan|black swans]].
 :*Indicates ''absence'' of [[commitment]]
 :*''Allows'' a lack of client commitment: products and offerings are fungible: you can rebadge the same old crap and send to someone else.