The Elements

By Andrea Schlapia   |   March 27, 2012

Take The First Step Towards Greater Efficiency With Client Segmentation

Categories: Blog, Client Segmentation, Operational Effectiveness

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


Andrea Schlapia
Organizational Development and Human Capital

Andrea Schlapia, RCC™, HCS, sHRBP, is the Founder and CEO of Ironstone, which represents the culmination of her 20+ year career within the financial services industry. Her experience began as a financial advisor evolving into a consultant coach for advisors entering the field. This ignited her passion to support others through learning and development of best practices in order to achieve substantial results. To this end, she followed her desire into positions of senior-level practice management specialists for Dreyfus, Prudential, and DWS Investments prior to the realization of Ironstone.  Andrea’s focus is on practice management strategies to enhance and improve both business and personal life.

Andrea identifies 4 key performance areas known as the Fundamental 4™, which are required to design, develop, and sustain a successful business. Through coaching sessions and speaking engagements, she captivates her audience with interactive, high-energy presentations which are built with “how-to” strategies resulting in real-world implementation for significant impact. Andrea has been featured in multiple publications and audio broadcasts as a specialist and distinguished spokeswoman in the financial industry.

Learn more...

Leave us a comment, get our blog posts delivered by email, or email the Ironstone Team.

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

Post a Comment

Your email address will not be published. Required fields are marked *

We would love to hear from you!

  • This field is for validation purposes and should be left unchanged.

Contributors

Andrea Schlapia
Organizational Development and Human Capital
Connie Deianni
Mentoring and Employee Engagement
Guest Blogger
Practice Management
Dr. Heidi Maston
Organizational and Educational Leadership
Judith Bowman
Business Protocol
Laura Garfield
Idea Decanter Co-Founder
Mighty 8th Media
Strategic Partner
Nicole Anglace
Special Projects
Ruthann P. Lacey, P.C.
Elder and Special Needs Law
 Scott D. Calhoun
Legal Counsel
Sharon Gottula
Idea Decanter Co-Founder
TailorMade
Strategic Partner
Ironstone
Practice Management
close

Contact

Thanks for your inquiry!

We will be contacting you shortly. In the meantime please feel free to connect with us on social media and explore our blog posts.

Ironstone understands the importance of protecting your privacy. We will not sell, rent or give your name or address to anyone.

Latest Blog Article

3 Ways Advisors Can Easily Embrace Social Media

Successful financial advisors are busy financial advisors. You didn’t gain all those clients and their lifelong trust by sitting behind closed doors and waiting for them to arrive, right? Odds are that you’re active in your profession, your community, your network,  your church, your circle of friends, and more. While your involvement in those areas of […]

Read More>