The Elements Ironstone Blog

Current news and trending topics for sales and financial industry professionals

Take The First Step Towards Greater Efficiency With Client Segmentation

1 Comment

Take The First Step Towards Greater Efficiency With Client Segmentation

 Client segmentation should be one of your first steps towards creating greater practice efficiency and profitability.   Yet we have found that advisors are skeptical about client segmentation due to the fear of losing clients.  Firms that have implemented client segmentation have found that segmentation aids in the retention of your ideal clients.

Client segmentation is about improving customer service for all of your clients.  Use it to deliver solutions more effectively by streamlining and automating the services you offer.  Aligning the right level of advisor support to the client’s specific needs results in increased client satisfaction and in turn may even result in more client referrals.

Start your segmentation process by defining client value.  Viewing each group with different needs and priorities will present you with the ability to serve each segment based upon their needs, not the firm’s profits. Advisors often discover that they can expand some client segments, when they know specifically what costs they will need to put against projected revenues.

Begin your segmentation process by following these steps:

  •     Define client value – Identify the drivers of value in your client relationship
  •     Quantify client value – Create a rating system to gauge each client
  •     Test your system
  •     Define Segments
  •     Track segmentation data
  •     Define & Update Processes

A firm’s defined segments may look something like this:

  •  A+=top 2% of your client database
  •  A=next 18%
  •  B=next 10%
  •  C=next 50%
  •  D=next 20%

To make segmentation truly effective, determine the type of services and frequency to promote clear communication to clients and prospects.

Trying to provide the same high level of service to everyone can make it difficult to focus on the more complex clients and on the inevitable changes that come with growth and business development.

Ironstone can assist you in developing a client segmentation plan,   identify gaps in your existing plan and collaborate with you to develop a solution to achieve the results you are looking for.

Contact us for assistance in starting and improving your client segmentation plan.  View our Segmentation Guide!  SegmentationGuide

We want to hear from you!   Share your best ideas here, we always love hearing from you!

Follow us as we explore each of Ironstone’s Fundamental 4™!

  • Strategic Planning
  • Business Development
  • Operational Effectiveness
  • The Human Element

You won’t want to miss our next in the series:  The Human Element-Hiring & Onboarding

Advertisements

Author: Andrea Schlapia

Over 20 years of experience in the financial industry and thousands of business professionals • Founder and CEO of Ironstone, • Certified Myers-Briggs Master Practitioner, performance culture and sales communication strategist • Certified Executive Coach through Coach U • Dynamic and entertaining keynote speaker at national conferences, breakout sessions and “lunch and learn” events • Motivating and real-world tactics delivered through value-added programs for Wirehouse, Independent and Banking channels • Accolades for the highest program evaluations and continuous return-speaking requests. • Dedicated to inspiring people to achieve bottom-line results for sustainable change: Andrea works with entrepreneurs and business professionals from various fields, striving to find and fill the gaps of each practice entrusted to Ironstone's care. Email Andrea with your practice management questions: info@ironstonehq.com

One thought on “Take The First Step Towards Greater Efficiency With Client Segmentation

  1. Pingback: Client Management Databases-Use Them To Your Full Advantage « The Elements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s