Segmenting Your Book of Business Effectively

A little organization can go a long way in segmenting your book of business. And it could also help you build stronger relationships—ultimately growing your book of business.

An effective business partner should help identify new opportunities within your existing book of business. But to get started, consider doing this exercise to help you find ways to maximize and grow your firm’s value.

Categorize each of your clients into one of the four areas below:

• Wealthy family
• High income earner
• Business owner
• Family planning

Now, keep in mind that some clients might fall into more than one area.

Once you’ve categorized your clients into these four areas, identify which one you want to focus on first. Your decision could be based on maximizing opportunity or simply having a strong competency in a certain area. Either way, you’ll want to hone in on a particular area to start.

Within that focused area, you can utilize resources like the ones we have here at Alphastar Capital Management to help you become an expert in that area by equipping you with the tools and resources available to our partnered financial professionals. Now, let’s break down the four areas.

4 Areas to Segment Your Book of Business

Wealthy Family

Characteristics:

• Over $2 million net worth
• Family or charitably inclined
• 55 or older

Questions to ask:

1. How do they plan on leaving a legacy?
2. Where is their “smart” money?
3. What will they do if they have a long-term care event?
4. What are their IRAs intended to do?

Related: How to Help Clients Retire with Financial Independence [Infographic]

High Income Earner

Characteristics:

• Professional
• Six-figure income
• 55 and younger

Questions to ask:

1. How are they protecting their family’s lifestyle?
2. Do they have a secondary retirement plan to provide flexibility at retirement?
3. What are their plans for paying for their child’s college education?

Business Owner

Characteristics:

• Has a mature business (over three years)
• Positive cash flow
• Any age and any business sector

Questions to ask:

1. Which of their employees are the hardest to replace?
2. Do you know how to protect ownership?
3. What will happen to their business when they retire, are unable to work, or when a team member leaves?

Family Planning

Characteristics:

• Over $2 million net worth
• Family or charitably inclined
• 55 or older

Questions to ask:

1. How do they plan on leaving a legacy?
2. Where is their “smart” money?
3. What will they do if they have a long-term care event?
4. What are their IRAs intended to do?

Your Next Steps

Our expert professionals can create exceptional opportunities for you and your RIA firm within these focused areas.

We can help you outline which questions to ask, what information to gather, and how to approach your clients in each quadrant. Are you ready to boost your bottom line?

Keep Reading: How to Set Expectation with Clients

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