The Fact:
Seventy-four percent of financial advisors now segment their clients using a broad-based definition of value. On average, these advisors rate clients on five different dimensions, including assets, potential, referrals provided, revenue generated and influence.

The Implications:
Advisors are well positioned to take a more disciplined approach to managing their clients. Going forward, expect to see a defined link between client service and client value and expect this to have a positive impact on practice profitability.

The Idea:
The key segmentation challenge for advisors is maintenance. Despite the time invested in the initial segmentation process, many advisors do not have a system in place to ensure that ratings are up to date. Create a simple form that shows your rating system and include that in all client files. At the end of each annual review, re-rate the client and pass the form on to your assistant. If circumstances have moved the client up to the next segment, enter that information in your contact management system. By investing an extra two minutes in each annual review, all client segment ratings will be up to date and you should never need to rate all clients again.

The Next Step:
The Business Success Kit provides you with the tips, tools and templates that you’ll need to enhance practice productivity and profitability. It’s the most practical and comprehensive guidebook available for financial advisors. For more information, visit www.CAIFASTORE.com and click on the Business Success Kit.