Your client database is rich with information about trends and patterns that can help you develop new ways of doing business, says Alan Middleton, executive director with the Schulich Executive Education Centre at York University in Toronto. Digging deep into your client data to find these gems is called “data mining.”

“[The database] is a core support to any sales or marketing effort,” Middleton says. “It is your base of information that will help you drive your business.”

Middleton offers the following advice on how you can become an effective data miner:

> Understand client behaviours
Performing simple queries within your database can give you valuable information about your clients’ behavior.

For example, you can create a list of clients who deposited more than $10.000 into their RRSPs last year, or which clients chose not to contribute.

Alternatively, you can run more complex queries. For example, you can identify which of your clients got married, increased their life insurance coverage and contributed $10,000 or more to their RRSP in the same year.

Knowing about these trends may help you when meeting new prospects.

> Enhance client profiles
Mining your database is a helpful way to develop a comprehensive client profile.

For example, if your database records tell you that your client, Mr. McGee, has not purchased segregated funds in the five years you have been working together, there is a good chance he won’t be interested in the new seg funds your practice is now offering.

Data mining can also give you a list of clients more likely to be interested in the new funds.

> Customize your message
Data mining can help you anticipate how certain clients might react to certain investment options you present, which can, in turn, enhance your client experience.

By tailoring your pitch or marketing materials to individual clients, Middleton says, you are sending the message that you are in tune with their financial goals.

Further, data mining helps you to avoid mass marketing to your clients. Instead, you can take an individualized approach to marketing — and to wealth management — which will help you build client loyalty.

Making full use of the data you have will allow you to target various segments of your clients with messages that are designed for them.

This is the second instalment in an occasional series on how you can use client data to help you grow your business.

Next: Run an “intelligence” business.