Customer segmentation vital to future success
Flexibility and effectiveness in segmenting customer needs is vital to maximising both business performance and client service for fund managers, a whitepaper by SS&C Advent has found.
The whitepaper highlighted the need to effectively segment customer needs to provide more accurate and efficient services to clients. Doing so would allow firms to consider how clients’ demographics, risk profile, tax status, career status, communication preferences and preferred fee models could be best served by their services.
“By identifying more specific and relevant client groups, you can better customise your service offering to their requirements to create the personalised experience they seek,” the whitepaper found.
The whitepaper also pointed to business performance as a key area in which segmentation can provide greater insight and results for advisers.
“It will help you determine the true profitability of your clients, and where to target your product marketing and service delivery efforts, both to optimise your internal efficiencies and achieve the greatest revenue results,” it said.
It contended that in an increasingly globalised and competitive wealth management industry, customer segmentation would assist firms maximise their competitive advantages by allowed them to identify the client types and asset classes that they would be best equipped to support.
Effective utilisation of technology would be imperative to effective customer segmentation, the whitepaper found. It suggested that data hubs, client relationship management systems and performance and risk analysis tools could all assist firms in segmenting client needs.
“Tried and tested solutions exist. The challenge lies in aligning your technology with your business strategy, and making the necessary systems changes and investments where gaps occur,” the whitepaper said.
AUTHOR
Hannah Wootton
Recommended for you
Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equity firm.
Asset managers may be urged to diversify their product ranges, but investment executives have warned any M&A deal should avoid simply filling gaps and instead consider long-term value creation.
Fund managers are entering 2025 with the most bullish sentiment since August 2021 and record high allocations to US equities, thanks to the incoming Trump administration.
An independent expert has ruled the Perpetual deal with KKR is no longer in the best interest of shareholders in light of the increased tax liabilities.
