Our strategy

The Group’s focus on the three initiatives of established markets, client journey optimisation and institutional offering remains unchanged for the year ahead. The significant achievements made with the initiatives during 2020 place CMC in an excellent position to continue to deliver throughout 2021, thereby deriving future value for, and supporting the diversification of, the Group.

Success of the strategy is measured across three initiatives:

Opportunity

The established markets of the UK, Australia and Germany generate a significant part of the Group’s revenue and, given the size and development of the markets, they also offer the greatest absolute growth opportunities. This means that we continue to focus on developing brand and product awareness with the aim of becoming the choice provider to new clients in these regions and offer the premium proposition and financial strength required to attract clients from competitors.

Priorities for 2020/21

  • UK: growth in net trading revenue generated from active professional clients and high value retail clients.
  • Australia: continue to grow the high value client base and prepare for regulatory change.
  • Continue to maintain market-leading client service levels in all three countries.

Underpinned by technology

  • Proprietary technology easily adapted to meet regulatory requirements.
  • Developing new products in response to client demand.

Progress against 2019/20 objectives

  • Significant growth delivered across all regions within the year in both professional and retail clients.
  • The Group continued to win numerous awards for client service and product throughout the year.

Opportunity

Mobile channels present opportunities for the Group to attract new clients and retain existing clients more efficiently by adopting a highly digital and targeted approach to the client journey

Priorities for 2020/21

  • Continue to improve customer experience across all touchpoints with CMC.
  • Continue to optimise customer retention and lifetime value.
  • Improve customer advocacy to drive greater share of voice.

Underpinned by technology

  • In-house development means that we can address pinch points in the onboarding process, and improve customer experience throughout the client journey.
  • Increased use of third-party analytical tools to identify gaps in the market and spend efficiencies.

Progress against 2019/20 objectives

  • Delivered numerous user experience improvements to our mobile and desktop customer onboarding processes, which has improved conversion rates.
  • Delivered premium content, tailored communication processes and notifications covering trading opportunities that help our customers stay abreast of opportunities in the market.
  • The high level of service we provide combined with the user experience optimisations have driven our Trustpilot score up to 4.5/5 at the end of March.

Opportunity

CMC Markets is set to play a key role in pricing and executing trades for an ever-growing number of institutional clients as there is strong opportunity to offer our award-winning platform to other institutions, through our API offering (electronic connectivity to the CMC Markets platform for institutions), white label (branded) and grey label (unbranded) propositions.

Priorities for 2020/21

  • Brokerage: strengthen the Group’s position as broker of choice for tier 2 banks, hedge funds, family offices and other institutional trading desks.
  • API: further optimise both the product and augment sales for what is already a globally recognised CFD liquidity provision solution to the brokerage community.
  • White label: expansion of our global B2B FX and CFD sales campaign, along with further deployment of our white labelled equity stockbroking business in Australia.

Underpinned by technology

  • Our technology allows us to win business in a highly competitive field.
  • Increased focus on development and sale of optimised B2B products across CFD and stockbroking businesses.
  • Increased investment in development of technology for FY20/21.

Progress against 2019/20 objectives

  • Progress was slower than anticipated during the year; however, significant technology development and infrastructure investment commenced in Q4 to remedy this, with substantial product improvements due to roll out in H2 FY20/21.