1. Data-Driven Customer Satisfaction
Zohar Swaine, TD Ameritrade Institutional
Jaime Fitzgerald, Fitzgerald Analytics, Inc.
Architects of Fact-Based Decisions™
This material is designed for an investment professional audience, primarily Registered Investment Advisors (RIAs) and is for illustrative and informational purposes only. TD Ameritrade Institutional,
Division of TD Ameritrade, Inc., member FINRA/SIPC/NFA. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2011 TD Ameritrade IP
Company, Inc. All rights reserved. Used with permission. TD Ameritrade and Fitzgerald Analytics are separate and unaffiliated companies and are not responsible for each other’s policies and services.

2. TD Ameritrade — Overview
Approach to Serving the Individual Investor
Client Needs Trading Investing Advice
Multi-Channel
Delivery Web Phone Branch Education RIAs
Products/Open Full range of trading products, tools, and
Architecture information; planning services; investment
and cash management products
Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved 2

3. The RIA Model is Winning
Independent RIA Model Gaining Assets
Client Asset Growth: RIA Retail AUM vs. Wirehouse Retail AUM
40% +39%
20% 35 pts
+4%
0%
-20%
2005 2006 2007 2008 2009 2010E
RIAs Wirehouses
Sources: Cerulli “State of the Wirehouses” – Nov ’09, “RIA Service Agent Survey” – Q2 ’10, “Advisor Metrics” – 2010 Update. RIAs include dually registered advisors. 2010E represents estimated results based on
industry publications, public filings, and TD Ameritrade internal analysis.
Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved 3

4. ‘The problems of victory are more
agreeable than those of defeat,
but they are no less difficult.’
-Winston Churchill
Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved 4

5. Our Moment of Truth:
Growth Led to Declining Satisfaction with Service
Causes Effects Consequences
Growth / In ‘07-’08, Customer
Scale Satisfaction Declined*
Customer Asset
System Satisfaction Growth
Complexity
Competition Customer
Loyalty Profitability
Expectations
* Based on Client Satisfaction and Net Promoter scores from monthly TD Ameritrade Institutional surveys of representative panel of ~200
advisors, 2007 to 2008.
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6. Service Matters to RIAs…More Than Any Other Factor
Reasons Given by Advisors for Their Choice of Custodian
1. Service
2. Technology Platforms
Decision Factors
3. Fees
4. Reputation
5. Execution Speed
Source: “Cerulli Advisor Quantitative Update Report,” 2010, Cerulli Associates, in partnerships with the College for Financial Planning, the Financial
Planning Association, the Investment Management Consultants Association, and Morningstar.
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7. “If You Can Measure It, You CAN Manage It”
Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved 7

8. Example: Account Opening Metrics
Illustrative
1 2 3
Mail Room Application Task Assigned
Receives Scanned into to
Application Workflow Workflow Queue
 Success: 90%  Success: 90%  Success: 90%
4 5 6
Account Setup Compliance Account
Process Review Funding
 Success: 90%  Success: 90%  Success: 90%
Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved 8

9. Adapting the “Service Profit Chain” Framework
Operating Strategy and Service Delivery System
Employee Revenue
Retention Growth
Internal External
Employee Customer Customer
Service Service
Satisfaction Satisfaction Loyalty
Quality Value
Employee
Productivity Profitability
 workplace design
 job design
 service concept:  retention
 employee selection
results for customers  repeat business
and development
 referral
 employee rewards
and recognition
 tools for serving  service designed and
customers delivered to meet targeted
customers’ needs
Source: James Heskett, Gary Loveman, Leonard Schlesinger et al.
Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved 9

10. Our Organizing Framework:
The Service Chain with TD Ameritrade Institutional
Factors Driving Customer Customer Business
the Customer Experience Experience Behavior Impact
Brand Values /
Attrition/
Promises Loyalty
Initiation Defection
Products &
Services Service
(including tech Expectations of New
functionality) Advocacy
Customers Accounts
Commitments Expansion
Competitor Asset
Benchmarks Inflow
Routine Asset
Receptivity
Services Outflow
Service (to new info,
Our Service Provided offers, etc.)
Processes ( = Result of Our Bottom Line:
Processes) Moments Profitable Asset
of Truth Growth
Source: Adapted from Heskett, et al, Harvard Business Review, July 1, 2008
Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved 10

11. Example Causal Map: New Account Opening
Customer Actions =
Customer Experience Customer Sentiment Business Impact
Quality
Customer
Accuracy Rate New Account
Satisfaction Scores
Speed
Time to Net Promoter
Assets
Open Account Scores
Experience
Quality of Exception-
Handling
Experience
Customer Service
Quality
Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved 11

12. Example: Account Opening Metrics
Illustrative
1 2 3
Mail Room Application Task Assigned
Receives Scanned into to
Application Workflow Workflow Queue
 Success: 90%  Success: 90%  Success: 90%
4 5 6
Account Setup Compliance Account
Process Review Funding
 Success: 90%  Success: 90%  Success: 90%
Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved 12

13. And Metrics Alone Wouldn’t Change Customer Experience…
Dashboards… Gaps/Opportunities Process Enhancements
Made it Which
possible pointed 1 2
to to needs
identify for
3 $
Which Created Better Results
Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved 13

14. Better Measurement Created a “Virtuous Cycle”
TD Led to
Insights About Improved
Ameritrade
Service Gaps Service
Institutional
Led To
Improvement And Client Operations
Our Client/
Opportunities Improved with Our
Customers
For Our Clients Help…
Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved 14

15. Impact on Results was Significant and Lasting
Client Satisfaction Net Advocate
95% 75% 75%
91%
70%
90%
65%
85% 60%
55%
80%
50%
78% 49%
75% 45%
J F M A M J J A S O ND J F M A M J J A S O ND J F M A M J J A S O ND J F M A M J J A S O ND
2009 2010 2009 2010
Scores are based on a 3-month rolling average. CSI is based on 11 point scale, that is, from 0 to 10, top 3 box = 8+9+10 rating points. Net Advocate is based
on [10+9 ratings] – [0+1+2+3+4+5+6 ratings]. Results for Legacy TD Ameritrade and Legacy Fiserv Trust Company combined November 09 and forward.
Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved 15

16. Our Journey: Data
Maturity
Level 1. Early Stage 2. Mature 3. Next Generation
 Barely exists in  Exists in abundance, but  High impact metrics
Data
usable form quality & value varies  Better data mgt / data quality
 Key scorecards
 3-Inch Binders
Analysis  Ad hoc  Decision tools & models
 Static
 Data-driven learning
 Fact-based optimization
Mgmt
 Gut decisions  Informed / Educated  People / Process / Data
Decisions
integrated
 Opportunistic  Short list / rough  Resource allocation optimal
Initiatives
 Reactive prioritization  ROI maximization
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17. Our Journey: Support
Maturity
1. Early Stage 2. Mature 3. Next Generation
Level
Business
 Available, flexible,
Intelligence  Scattered / Ad-hoc  Limited access
dynamic
Community
 Empowered by KPI
Experience  Overwhelmed by data
 Constrained by data gaps production, analysis of
Analyst deluge
drivers / causality
Databases  Decentralized / Ad-hoc  Centralized  Made available
Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved 17

18. Diverse Benefits from CXP Measurement System
1. People 2. Process
 Incentive Changes  Workflow Changes
 Confidence in Decisions Up  Six Sigma Process Improvements
 Cultural Shift  Earlier Detection of Issues/More Proactive
Resolution
3. Technology 4. Other
 Changes to Technology and Systems More  Less Trees Cut Down
Efficient
 More Transparency with Advisors
 Upgrades have been easier
 Competitive Advantage in the Marketplace
 Additional innovation built on top of
measurement platform
Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved 18

19. Key Concepts
Concept Key Implications
1. If you don’t measure what
 Agree on key drivers of results
matters, you are managing the
 Measure the drivers and manage improvement
wrong things!
 Beware of unintended incentives
2. Better Metrics != Better Decisions  “Walk through” processes carefully to find the real
opportunities to improve
 Managers care about results the most, and process
the least.
3. Managers don’t care about
 This creates a challenge because process
process…
enhancements are essential to better results!
 A clear causal model helped us a lot
 Demonstrate the need (tie back to pain!)
4. Executive buy-in essential  Create proof of concept with early wins
 Iteratively fund additional investments
Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved 19

20. Key Frameworks Integrated
Customer
Experience
Balanced Data
Scorecards Management
Questions?
Data-Driven Customer Satisfaction © 2011 Fitzgerald Analytics, Inc. All Rights Reserved 20