IFA profits rocket with 'proper' client segmentation

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The "effective" segmentation of clients, including grouping them by value and differentiating the service they receive, can more than double a firm's profitability.

This is according to new figures collated by consultancy FP Advance, based on the details of more than 50 UK IFAs. They show advisers who carry out proper segmentation can help a business to a £240,000 profit per principal compared with just £100,000 when they do not. In addition, the figures suggest even minimal segmentation can significantly boost a firm's bottom line, while investing in technology can improve profitability ten-fold. The results come as a white paper launched last week by software provider 1st-The Exchange, suggested client segmentation is the area a third of advise...

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