Client profiling linked to stronger due diligence and provider turnover

Advisers with defined client segmentation strategies more likely to assess and switch investment providers

Sahar Nazir
clock • 2 min read

Advice firms that have a defined client profile are increasingly likely to have a "distinct" due diligence process when assessing investment providers, according to data from Quilter Cheviot and NextWealth.

Among advisers with a clearly defined client profile, the majority (96%) also have a structured due diligence process. Meanwhile, only 4% of advisers with a target client profile lack such a process. This figure rises to 28% among those who do not segment their clients at all. Advisers with a defined target client profile also tend to work with more investment partners, an average of 3.6 compared to just 2.6 for those without a defined profile. Those with any form of client segmentation strategy work with an average of 3.3 investment providers, compared to 2.9 for those without one...

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Sahar Nazir
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Sahar Nazir

News Editor at Professional Adviser

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