Client lifetime value model for asset management

Analytics driven computation of client lifetime value to provide insights about future profitability of retail wealth management clients in the asset management industry

1. Forward

Client Lifetime value (CLV) is a forward leaning metric that objectively informs asset managers about future profitability of the client across the duration of their relationship with the firm. In particular, it helps managers make informed decisions in budget allocation towards market and client engagement initiatives. In this white paper, we discuss the merits of client lifetime value in the asset management environment marked by fast paced changes in its sales and distribution. We outline EXL’s CLV framework and how it optimizes resource allocation in this industry.