Client Segmentation Is The Key To Profits, Schwab Consultants Say

Thursday, June 23, 2011 22:35
edit
Client Segmentation Is The Key To Profits, Schwab Consultants Say

Tags: profitability | Schwab

Schwab Advisory Services surveyed the top 20% RIA firms on its platform and discovered that yes, the most profitable practices focus on identifying the "best" clients and targeting prospects that resemble them.

This Website Is For Financial Professionals Only


 

As Schwab notes, the typical RIA derives 38% of its revenue from just 7% of its client list.

 

Teaching advisors how to tailor their operation to that exceptionally lucrative 1 in 14 clients helps "to better align resources," the company says.

 

"We have found that advisors who take a strategic and proactive approach to client segmentation are often the best poised for future growth," Schwab VP Nick Georgis explains.

 

So far, Schwab consultants are working with RIAs in Chicago, St. Louis, Minneapolis, Dallas, Newport Beach, and Seattle. More workshops are planned to roll out over the next six months.

 

 

 

Comments (0)

Write comment

You must be logged in to post a comment. Please register if you do not have an account yet.

busy