Research On The Appropriateness And Brokerage Profit Model

China’s implementation of floating commission system and lowering of securitiescommission standards since2002have resulted in a fierce commission competition amongbrokers. After the2012CSRC Innovation Conference, a series of innovative measureshave been put forward, and the year of2013witnesses the rise of Internet banking. Variouspolicies therefore have been introduced, which makes the broker profit modeltransformation more imperative. Securities companies only focusing on customer demands,improving the overall level of professional services and turning current traditional channelservices to appropriate services can achieve the shifting from extensive management tointensive management and improve their competitiveness. This article tries to make anexploration on brokers’ appropriate management both theoretically and practically in theface of securities companies seeking changes in profit model and brokerage restructuring.The article presents the brokers’ appropriate management means establishing aneffective and sustainable brokerage business model—appropriate service model, whichintegrates brokers’ business model, to break through the homogeneous competition withthe service differentiation strategy. Besides on the basis of theories like corporate strategy,relationship marketing and market segmentation, it focuses on how to carry out customerservice model hierarchical classification system, marketing service system, CRM systemproject, large data information technology and wealth management services. It also makesa detailed analysis on the impact of changes in the brokers’ profit model, and then providesstrategic advice for the further work on domestic brokers’ appropriate management. Theinnovation of this article lies in the introduction of customers hierarchical classificationmodel and its application, combining the practical exploration on DW securities, andputting forward wealth management is the development direction of appropriate service model, on which brokers should exert efforts to gain advantages in service differentiationcompetition.