ObjectiveIdentify redemption patterns across products and customers to inform marketing, sales, product development and pricing.
The challengeThe firm struggled to retain investments long-term as the average redemption-to-investment ratio climbed. The BI team analysed transactions to explain the increase.
Approach & analysis- Analysed AUM movement over four years and within the fiscal year using a data warehouse and Tableau (daily refresh).
- Split existing vs new customers, then positive vs negative AUM movement, profiling each on personal, account and service attributes.
- Examined redemption-to-investment ratios by product and by sales-load status.
Key insights- AUM rose 65% over four years — attributable 105% to sales growth and −5% to market.
- Equity-fund AUM fell 32%, driven mostly by negative sales growth.
- Retail clients had the highest redemption-to-investment ratio at 97% vs a 79% company average.
- Transactions without a sales load were far more prone to redemption (84% vs 65%).
Solution- Engaged an external consultant for in-depth interviews with high-redemption, low-AUM customers.
- Ran face-to-face and telephone surveys across three major cities and both low/high redemption groups.
- Used findings to set strategic direction on products, service and pricing.
Results+65%AUM growth over four years
97%Retail redemption-to-investment ratio surfaced
TargetedRetention focus on at-risk investors
