Client segmentation about needs, not just assets

The financial planning industry presents an opportunity for better client segmentation, a greater understanding of client needs and then building tailored services around those needs, according to ipac general manager of financial planning Libby Roy (pictured).

Roy joined ipac in April this year, and the dealer group has already undergone a structural change that recently resulted in a number of key appointments, including general managers for each of ipac’s key states. Roy said she continued to be attracted by the group’s client care focus and the importance of the financial planning industry to the general public’s future wellbeing, and her aim was to maintain that focus on client care. However, she also saw an opportunity to improve the way ipac communicated its value proposition to customers and to further tailor its value proposition to particular segments.

“My key focus is to grow the business through innovation, and some of that I bring from my sales and marketing background and general business management,” she said.

There was some criticism in the industry about Roy’s appointment because she did not have a financial planning background — her previous role was vice president and general manager of global business travel with American Express. Roy said she had compensated for that lack depth of experience by surrounding herself with the right people: Ross Nayler has recently been appointed as head of sales, and the general manager roles for New South Wales, Victoria, Queensland and Newcastle have been given to Spiros Christoforatos, Michael Gilmore, Nick Brinkworth, and Tony Bottaro, respectively.

“Having a business management and strategic marketing background allows me to have a fresh perspective and to reconfirm where things are operating effectively,” she said. “It also allows me to test things, innovate and leverage off my background in other industries.”

Roy said ipac was more competitive in the pre-retiree and post-retiree spaces, however the offerings across the industry were “somewhat generic”.

“Therefore I think where the opportunity for growth lies is getting clearer about customer segmentation and really understanding the psychographics and the demographics of the different customer segments, and delivering a value proposition that meets those needs,” she said.

Roy said this approach was distinct from segmenting clients based on assets. Its client needs approach resulted in the launch earlier this year of ipac’s Aged Care business.

Roy said the transition into an aged care facility was a complicated financial and life event.

“So that’s a service we offer because what we’re aiming at is helping our clients through significant events that happen in a point in their life cycle,” she said, adding that ipac aimed to build further offerings using a similar approach.