This article is adapted from the live broadcast sharing of “Fund Industry digital operation System construction” by Yi Xiangwen, senior solution consultant of Shence Data.
The construction of digital operation system is the first link in the process of digital transformation of the fund industry. How to do a good job in the implementation of the digital operation system of the fund industry is the content that practitioners really deserve to pay attention to. In this paper, we will briefly introduce the overall thinking of the digital operation of the fund industry, take the landing scenario as the core, and answer the following three key questions:
- Why should fund industry operation accelerate Internet transformation?
- Fund industry operation Internet transformation needs what kind of plan?
- Facing the typical business scenario, how to do digital operation well?
Why should fund industry operation accelerate Internet transformation?
1. Contradiction between investment demand and financial difficulty
The overall wealth of Chinese residents is growing rapidly: on the demand side, the total investable financial assets of residents reached 148 trillion yuan in 2018 and is expected to reach 243 trillion yuan by 2023, while the high net worth population will also reach 2.41 million. However, in terms of the supply of investable objects, the real estate investment environment has encountered certain policy adjustments, and “no speculation on housing and housing” has become a consensus. The returns of banks’ wealth management and money funds have continued to decline, the stock market still fluctuates, and all kinds of P2P projects have experienced a thunderwave in the past few years.
Under such background, public – offered fund has become the core institution to solve the current contradiction between supply and demand.
Figure 1 Contradiction between demand and supply of investment demand and difficulty of financial management (click to enlarge)
2. There is contradiction between development opportunity and business form
On the one hand, public funds are subject to strict supervision and market transparency is high; On the other hand, the overall market size of the public fund is also continuing to climb: by the end of 2019, the market size of the public fund reached 14.8 trillion yuan. Among the open-end funds, the share of money funds is decreasing, and the growth size of stock funds and hybrid funds exceeds 1 trillion yuan.
Figure 2 Contradiction between development opportunities and business forms of the fund industry (click to enlarge)
To some extent, this reflects that Chinese residents’ investment thinking is becoming clearer and their understanding of investment channels is also deepening. But it also comes with a series of problems:
First of all, the whole public offering fund industry is affected by historical factors, and the customer stickiness is relatively insufficient. The core reason is that the industry has long focused on the construction of commission sales. Around 2012, the big five actually accounted for more than 90 per cent of fund sales. With the emergence of products such as Yu ‘ebao, major fund institutions have begun to pay attention to the construction of third-party Internet channels. At present, banks and Internet channels pay equal attention to each other, but in fact, customer resources are still in the hands of channels, and it is difficult for fund companies to really control customer resources.
Second, fund trading is relatively low frequency. For example, a client may have a contract, but often ignores it and does not go to the fund company’s platform at all. In addition, long-term consignment also led to fund companies do not pay much attention to the customer’s direct contact.
3. Solutions to the two major contradictions
The above contradictions will lead to the following two problems:
First of all, how to do, in order to the Internet channel doubled the importance of the era, the new fund products to sell?
Second, the experience of self-built platform is poor, and the service is relatively single. Fund companies’ ability to control customers and service level have not kept up with the demand of the growth of market scale.
Basically, the whole industry has chosen to solve the idea of Internet transformation, but the Internet transformation is actually a very large proposition, focusing down we can put the center on how to build a good fund company’s own Internet platform. There are many ways to build an Internet platform. A typical way is to build a fund company’s own APP, such as the well-known Huitianfu Fund in the industry. Another way is to build your own fortune on other third-party platforms, such as The Fortune of Ant or The Fortune of Tiantian Fund.
Figure 3 General ideas of Internet transformation of fund industry (click to enlarge)
Our suggestion is that we should give priority to building our own App platform, taking into account platform profit margin, traffic scarcity and platform autonomy.
To build a self-run App platform with real market value should aim at direct selling, digitalization and service. At the same time, the iteration of self-run platform should carry out refined operation for customers, pay attention to existing and potential Customer groups, and really Know Your Customer. Most importantly, we can support Customer insight through data analysis. We also need to provide a series of active services throughout the whole life cycle of our customers, from pre-sale, sale to after-sales service, to ensure the smooth of the whole chain.
However, there are also some challenges that come with building our platform. For example, most of the flow is controlled in a few big third party sell on a commission basis platform, how should fund company pull the flow to come over? It costs more and more to buy the flow from the market. How to find the most cost-effective flow channel is the problem that everyone is concerned about. In terms of operation, most fund companies are relatively weak compared with traditional and Internet companies, and lack certain foundation.
Fund industry operation Internet transformation needs what kind of plan?
1. Overview of the fund data-driven system construction scheme
Based on best practices, Shence provides a comprehensive view of the construction of a data-driven system for reference. God tze thinks, want to do the key point that fund company Internet platform builds, the most important still is data infrastructure construction. Data base is the foundation of platform construction and application empowerment. After conducting in-depth research on the industry, we found that fund companies are not without data, but the core problem is that they do not manage the data well.
Figure 4 Construction scheme of fund industry data-driven system (click to enlarge)
Fund companies have many different data sources. For example, we may have our own trading system, and we may have our own CRM system or third-party tagging systems. However, these data are equivalent to data islands within the enterprise, and many fund companies do not really integrate these data to build a complete customer portrait.
First of all, the fund company to the user’s full life cycle event touch points are clear. For example, the company’s own APP platform will put advertisements on third-party media, and customers may be attracted by the advertisements. Then, the company can provide red packets or other incentives through the way of bonus points, guide customers to visit, activate and open an account, and then guide users to complete fund purchase through various financial tools. After the growth of the client’s investment income, promote the client to help share and pull new.
Throughout the user’s life cycle, touch points are very rich. For fund companies, therefore, to establish a full end of the data collection ability, whether in the proprietary platform, or public or H5 WeChat page, as far as possible to integrate the data to the same underlying data technology platform, and the data they can really get through, unified identification of users, to the ID – Mapping ability. On this basis, users’ behavioral preferences, investment logic and interest data can be used to generate a complete portrait.
Now, let’s go back to the platform construction. Users’ purchases and transactions follow a complete process that can be broken down into different steps. When evaluating user experience smoothness, we can use models such as funnel analysis to help evaluate the status of the platform construction.
Of course, evaluation is actually relatively passive, so we need to change the way we operate, to do active touch to users. Before doing active touch, it is necessary to have insight into the characteristics of the customer. We can combine the collected low-level data, then establish user tags, and then analyze what the characteristics of users are under a certain tag. For example, we can mark users who invest more than one million as high net worth users, analyze their behavioral preferences, and optimize the functional points they are interested in by means of refined operation.
Next comes the landing data analysis scenario. Typical application scenarios include indicator monitoring, channel quality monitoring, and operation strategy construction. Fund companies thus formed from the data base, to platform construction, and then to the application of the power of the three levels of system.
2. Six major capabilities required for the deployment of the plan
Data acquisition capability. As mentioned earlier, customers may have a number of different contacts on the front end. Only the complete collection of full-end data can establish a complete data warehouse, so as to realize the refined operation of users.
Figure 5 Shence Fund Industry data collection system (click to enlarge)
The ability to connect behavioral data and business data. The behavior data and business data of fund customers are very important. Through the opening up of the back-end data, we can know the different performances of users on different platforms, avoid the one-sideness of the user label system, and operate users more specifically.
Figure 6 Shence Fund Industry Data integration model example (click to enlarge)
Data management ability. In fact, many fund platforms have been connected to different burial points, and precipitation of a lot of data. However, as the platform itself iterates, the data warehouse is “contaminated” by outdated buried data. In addition to data governance, data formats and categories should be standardized to ensure controllable data quality.
Data visualization capability. In terms of data visualization, many fund companies do not know how the index system should be presented. We believe that fund companies can refer to the business kanban of friends, build a macro form of presentation, and at the same time pay attention to the targeted indicators of specific products. The Oracle data is also based on best practices, providing two common constructs: one-click generation of expert built-in Kanban and custom kanban for actual analysis.
FIG. 7 Shence Fund Industry Data Visualization template (click to enlarge)
Scenario application capability. In terms of implementation, Shence has customized an easy-to-use application scenario library for the fund industry with its own professional ability. In addition to common analysis models, the functions in the scenario library are also highly compatible with the actual business indicators, and in continuous iteration.
Figure 8 Shence Fund Industry Scene Library (click to enlarge)
Product experience optimization and process optimization ability. The capabilities of this part can be divided into four categories: first, platform basic access and performance monitoring; second, service access and traffic diversion effect monitoring; third, multi-step process transformation analysis; fourth, user behavior path analysis.
In the face of specific business scenarios, how to do digital operation well?
1. Scenario 1: Online operation and effect evaluation
We choose pull new as a typical scene of online operation effect evaluation to analyze. Attracting new users is a difficult problem for many fund companies, especially for those companies that start their platforms late. The overall user flow is in the hands of third-party commission sales platforms. For companies that want to attract new companies quickly, it is necessary for the platform to reorganize its operating logic.
Figure 9 Shence Fund Industry Channel tracking scheme (click to enlarge)
Operators can use different dimensions to label the links of each channel to distinguish customers from different channel sources. Take baidu keyword advertising as an example. We can name channels by keywords, and once users first visit the link, their user id can be obtained. Then, if the user downloads the APP of his own platform from the application market through the landing page and completes activation, his user id will be identified and the complete user path will be recorded.
Based on the above content, the operation personnel can analyze the number of users acquired from each channel, the conversion rate of users in each link is better or worse, and finally how much revenue contribution they bring, so that the overall effect can be effectively evaluated. After that, the operation team will adjust the proportion of each customer acquisition channel according to the analysis results, so as to achieve a targeted target. In addition, combined with multi-end data opening, the continuity of user behavior in multiple ends will also be improved.
2. Scenario 2: Closed-loop operation construction based on a service scenario
At the level of refined operation, fund companies generally have a core KPI index of their own platform. Our recommendation is that fund companies build a complete operational loop based on business scenarios to help refine the implementation and iteration of operations.
If a platform wants to increase the trading volume of its own platform fund products, this goal may seem ambitious. However, if we break it down and break it down into small goals, it will be much clearer to set up the operation strategy.
Figure 10 Operation closed-loop based on business scenario (click to enlarge)
As a first step, we can acquire more new users and then promote the first investment conversion through novice guidance. Second, we can continue to nurture our existing high-value users to generate more investment conversion. Third, we can wake up our dormant zombie users and encourage their investment to return.
It can be seen that the above three small goals are aimed at different user groups. Next, the operation team can build labels according to different customers, complete in-depth insight into users, and develop operation strategies suitable for them according to the characteristics of the group users. For example, for new users, we can speed up their investment conversion by rewarding them for checking in and alerting them to investment opportunities during the induction phase. After different strategies are formulated, we can iterate our own APP platform according to their needs, so as to meet the different needs of users. This is also the fundamental reason why our own platform will have greater value than third-party channels. On the touch side, operations teams need to connect with users in a variety of forms and rules.
Finally, the operation team also needs to evaluate the operation of the operation loop, focusing on the three dimensions of target effect, user insight feedback and policy rule iteration.
3. Scenario 3: Building the user tag system
In the execution of the operation loop, the construction of the user tag system is particularly critical, this step is related to the depth and accuracy of our customer insight. For funds, we may be more concerned with the underlying numbers, such as total positions, total number of trades, event preferences and pattern characteristics. For example, event preferences, such as which funds users invest in most often, which sections they visit most frequently on the platform, and their last behavior, all have a clear reference value in building user tags. The operation team can build a variety of labeling systems based on these different characteristics.
Figure 11 Example of creating a dimension for the user label system (click to enlarge)
Shence based on the accumulation of profound service experience, created a set of comparison of the benchmark label system. It includes five dimensions of basic information, account characteristics, business characteristics, active labels and user value system, which is suitable for the reference of the company to build the user label system.
Figure 12. Example of user tag system’s underlying construction fragment (click to enlarge)
After building the tagging system, users will also be able to layer, but the user groups under each tag still need deep insight. For example, based on user profiles, we can extract the distribution of different groups in subdivided dimensions such as age, region and device, and compare it with the customer profile deposited on the platform. The operation team can also select typical high net worth users for analysis and carry out special maintenance for those who contribute a lot.
The above is the essence of live broadcast content of fund Industry digital Operation System construction by Yi Xiangwen, senior solution consultant of Shence Data. Follow shence data public number, reply keywords [fund 511] can see the complete live broadcast content, there are other courseware for you to download.