Increased Revenue Trade in a Sluggish Market for a Brokerage Firm

Our client, one of the leading brokerage firms in the country, hit a rough patch in 2000 when the internet boom went bust. The president of the firm’s active trader division needed help increasing revenue trades in that sluggish market environment.

We conducted a deep-dive analysis to understand key business drivers, measuring business health, and program results. This analysis included identifying “sweet spot” segments to assist the client’s active trader household penetration and revenue trade volume. Then we created a two-part strategy. First, we redefined and implemented a cohesive sales process that included their recent acquisition of a day trading firm. Then we marketed a mass active trader offer that would appeal to the majority of consumer active traders and compete head-to-head with industry giant, DATEK.

Our reengineered pricing structure and gain/share strategy, placed the client in a competitive position. By leveraging the day trading firm, we developed, launched, and marketed an online active trading product that was directly competitive with firms including Charles Schwab, DATEK, eTrade, and Ameritrade.

The result was a 26% year-over-year growth in retail daily average revenue trades and a 25% increase in new active trader households. Our strategy also lowered client attrition rates from 23% to 15% within the first year and increased the overall market share beyond our client’s 29% goal.