There has been much hype about client segmentation recently. But Paul Etheridge, founder and chairman of Prestwood Software, argues this is not necessarily the best strategy.
Some advisers are spending a considerable amount of time segmenting their client base into (for example) ‘platinum’, ‘gold’ and ‘silver’ clients, then designing a different level of service for each category. Is this a good use of time? Probably not. It can be argued that financial planners need only one segment (profitable clients) and only one service (comprehensive financial planning). Every client should receive the same service, albeit with the detail tailored to their specific circumstances. No time to lose The scarcest resource available to financial planners is time. Our res...
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