Seeking Long-Term Partners and Not Just Clients
October 10, 2017
We’ve been marketing our research services for the most part of the year as well as maintaining and improving our stocks and economic research. The last time we had a major marketing thrust was in 2011 when we garnered two new clients at the end of the year.
This year is taking much longer than expected. It’s because we are aiming for clients with the same vision as ours in using research to actively gain more retail and institutional clients. We think our services and our clients’ marketing is a great blend. It is a partnership that will make us grow in the long term.
Our last two clients mainly used our research as a novelty since we use the value-investing methodology, while our first client took another path of forming its own team with the traditional research methods. We have to replace these former clients to sustain ourselves in the long term. Our marketing efforts have given us four solid prospects as of this time. Hopefully, they become long-term clients.
Generally from our experience, the market of local stock brokerages were not inclined to get stocks and economic research services even if they don’t have these capabilities. They saw research as a cost than a main tool, and surprisingly, many viewed themselves as small and have no plans of gaining additional retail or institutional clients at all.
There are around 200 stock brokerage houses in the Philippines. Around 40 of them are significant, while the rest are small players. Just around 15% of local stock brokerage houses utilize stocks research, and by that, we mean they have their own forecasts and valuations. The rest use the news and market tips as “research”. Less than 15% have their own economists.
This data is surprising to us because we are in the old school thinking that we are guiding and growing people’s investment with due diligence. We are actually enthusiastic in marketing especially to the houses without research capabilities. Our fee is lower than average, and our coverage is big. Some meet us with the same enthusiasm, but a few only seriously consider in subscribing.
We wish we have the savvy of Alec Baldwin’s character in the film Glengarry Glen Ross. His AIDA (Attention-Interest-Desire-Action) and ABC (Always Be Closing) gets him tons of clients according to him. However, we prefer the Dicky Fox method from the film Jerry Maguire. His is quality and care for a few or to many clients. He loves his wife. He loves his life, and he wishes the same kind of success to all.
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