Client Segmentation: A New Approach

Knowledgeable and fast. That’s the kind of response you want when you encounter a problem or simply seek information about a product. Your wealth management clients are no different. Faster response and greater personalization of service may be keys to keeping their business and deepening that relationship in this increasingly digital age.    

More effective client segmentation may help you reach these goals, according to a recent whitepaper published by SS&C Advent, which provides technology solutions and services to the investment management industry. You can download the free whitepaper, “The Secret to Wealth Management Profitability*.” (Please note you will be leaving Scottrade® property, entering a third-party website and will be subject to their terms and conditions. You may be required to provide personal information in order to access the material.)

The article says the old method of segmenting clients by AUM and offering a standardized menu of products is no longer enough. Metrics for better segmentation these days may include tax status, age, appetite for risk, total wealth, fee preference and the type of relationship the client desires --  frequent contact or high level. What’s the client’s communication preference? Is the client a good source for referrals even though his or her asset level is not particularly high? The article says segmentation at this deeper level may save you from spending disproportionate resources on certain clients or missing out on cross-selling opportunities.

The article says an automated process can help you collect information about clients from social media. The client may be impressed by a quick congratulatory note when you learn about a promotion or career change.

The article also says an efficient client management system can help you demonstrate your value to clients. You can easily communicate how you helped ensure that a portfolio stayed within risk parameters in spite of market volatility.

Resources That Can Help  

Explore the Scottrade® Strategic Resource Center to connect with SS&C Advent and other organizations that specialize in technology, compliance, research, education and marketing. Many of these resources offer discounts to advisors who custody assets with Scottrade. (Scottrade provides this resource for informational purposes and does not specifically endorse any of the businesses within the directory. Scottrade also does not pass judgement as to whether those services are appropriate for specific business needs. Be advised this is not a full and comprehensive list of businesses that offer these types of products or services and that advisors are responsible for doing adequate research before making any purchases.)

* By clicking on this link, you understand you will be redirected to SS&C Advent, a third-party website operated and maintained by SS&C Advent. Scottrade and SS&C Advent are not affiliated. SS&C Advent’s website contains information that may be of interest or use to the reader. Third-party websites, research and tools are from sources deemed reliable; however, Scottrade does not guarantee accuracy, completeness or timeliness of the information, is not responsible for statements, offers or products issued and makes no assurances with respect to the results to be obtained from their use. No information presented constitutes a recommendation by Scottrade or its affiliates to purchase any product or instrument discussed therein or engage in any specific strategy. Please research any product or service carefully before purchase.