“The number one productivity challenge for advisors is serving too many non-ideal clients,” according to the Cerulli Edge, U.S. Advisor Edition, 2024. As your practice grows, time becomes your most limited — and valuable — resource.
That’s why segmentation matters. By dividing your client base into groups based on shared characteristics, needs and behaviors, you can make smarter decisions about where to invest your time and how to structure your team’s efforts. The result is more meaningful engagement with your best clients — and more capacity to grow.
“Having a segmentation model is really step one into delivering that client experience. Number two, and equally as important, is how do you marry that segmentation model with your service model? You've gotta do both steps to deliver that superior client experience.”
— Jon Wainman, Advisor Practice Management Consultant at Capital Group
Effective segmentation is purposeful. It means prioritizing clients not just by current revenue but by the qualities that drive long-term value — like profitability, future potential, service intensity and strategic fit. A thoughtful framework helps align your time, team and resources around your most valuable relationships, supporting sustainable growth and stronger loyalty.
Use the scoring tool in this lesson to:
- Build a segmentation framework aligned to your business strategy
- Evaluate existing clients with a consistent set of criteria
- Grow with more purpose, clarity and confidence
When you align service levels with client value, you don’t just get more efficient — you create space to deepen your best relationships and scale your firm intentionally.
Data snapshot
Segment by key factors
Are you segmenting your client book? Often the starting point for segmentation is client profitability. But there are other factors that impact the long-term health of your practice and the effective use of your precious time and resources. Take a look at the top examples cited by other practices as their segmentation approach became more sophisticated.
INSIGHTS
Segmenting to deepen relationships
In this video, Jon Wainman discusses segmentation — and why dividing your client base into groups based on shared characteristics, needs and behaviors helps you build high-value relationships.
Jon Wainman
Advisor Practice Management Consultant
3MINVIDEO