Starbucks is a modern master at managing customer experience. Starbucks has pioneered the process of taking a basic commodity: coffee; through a service: providing a cup of coffee; to creating an entire customer experience around coffee.

Starbucks provides personalisation with a barista, not a robot, who puts your name on your personal cup. Customisation is also key. Starbucks estimates that it currently offers over 170,000 beverage combinations.

Why does Starbucks go to all this effort? Because personalisation and customisation shifts commodity goods, with commodity pricing, to a premium customer experience with premium pricing. 

Risk assessment provides the key for personalisation and customisation of financial services. Individuals, accustomed to being offered a high level of personalisation, also want investment advice that suits their individual preferences, needs and wants. Customisation requires knowing investors as unique individuals and engaging with them in a personal way. The financial advisor needs to understand client needs and provide client focused investment solutions. Despite its importance, little insight has been provided for how investment advice can best be personalised. The latest developments in risk assessment offers the advisor the opportunity for personalised and customised financial advice.