The key to successful client segmentation is to factor in both quantitative and qualitative elements, which exist in every business relationship. Though revenue will always be a critical component in determining the value of a client, we should not overlook the qualitative impact of factors such as referrals, attitude and growth potential.

The majority of advisors segment their books quantitatively, by assets and/or production levels. This gives only a partial answer to the quality and impact of any given relationship in your practice.

Thus, segment your book both quantitatively and qualitatively, using five variables (on a scale of 1 to 3):

  1. Current revenue
  2. Potential revenue
  3. Center of influence
  4. Relationship quality
  5. Time consumption

Please review the The Client Service Toolkit, and explore the additional content and resources in this series.