Client segmentation can be a powerful strategy for helping financial advice practices determine which products, fee structures, and communication strategies work best for each client group—provided you go about it the right way.
To clarify, there is no “wrong” way to approach client segmentation.
“Advisers can segment their clients in a lot of different ways, for a lot of different reasons and there’s no one right answer,” Business Health partner Tony Stephens explains. “The primary thing is to provide a service that clients or a client type will need and want, and that they’re prepared to pay for.”
So while no specific strategy around segmentation is “wrong”, per se, it’s crucial that you ensure the segmentation strategies you’re using are actually relevant to your client base.
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Advisely Team