The Fact: In the average practice, 43% of assets are concentrated with the top seven percent of clients.

The Implications: It is common to find a high concentration of assets among a small group of high net worth clients. If concentration is too high, however, it is often symptomatic of a practice with a large number of very low asset or revenue clients. It is important to understand average assets or revenue per client segments, rather than focusing only on an overall average for the practice. By digging deeper, you can ensure that you invest your time in client relationships appropriately.

The Idea: Once you have segmented your clients, complete a brief analysis that shows the average assets and/or revenue for each segment. This information will allow you to set service standards, which are clearly linked to the value of the client. While knowing the size of your average client is interesting, it will not help you structure service effectively.

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.

Attend CAIFA’s National Conference to learn more ways to achieve long-term success. Visit www.caifa.com for more information and to register.