Advisors are always looking for ways to grow in assets and client service. Through new strategies and technological approaches, they can find growth in unexpected areas. Client segmentation is one of those areas, according to Alison Considine.
Considine, Head of Strategy & Business Development at Betterment Advisor Solutions, says that advisors often view client segmentation as challenging because it introduces friction. With the right implementation, however, Considine says these challenges can be overcome to produce both scalable growth and more tailored client experiences.
To learn how important client segmentation has become and precisely what benefits it can provide to advisors when implemented correctly, we caught up with Considine, who addressed typical views of client segmentation, how it can be reframed for growth, how segmentation works and its short- and long-term benefits.
WSR: What are the typical firm views of client segmentation?
Considine: RIAs have viewed client segmentation as controversial or an administrative, efficiency-driven tool because of the expectation it can introduce friction. Managing different client needs across platforms, custodians and service models adds complexity, overhead and operational risk if not done intentionally.
At its core, effective segmentation means aligning different client types with the right service model, technology and custodial setup. When done well, firms agree it becomes a powerful lever for scalable growth and differentiated client experiences.
The challenge is implementing segmentation without slowing advisors down. Firms implementing segmentation are setting up advisors to utilize different platforms and custodial solutions for different client segments, without creating unnecessary friction. The result: a more efficient operating model, clearer value for clients and a durable competitive advantage for advisors.
The challenge is implementing segmentation without slowing advisors down.
WSR: How can client segmentation be reframed as a lever for strategic growth?
Considine: When implemented correctly, client segmentation becomes a powerful organic growth lever. The top RIAs achieving the strongest organic growth are doing so by strategically segmenting their client base, building in differentiated service models, pricing and advisor capacity to unlock profitability and growth.
Segmentation also positions firms to capture the next generation of wealth by offering tiered experiences that evolve alongside clients’ needs. Platforms like Betterment Advisor Solutions make it possible to implement these differentiated models without adding unnecessary operational overhead, allowing firms to grow organically while maintaining consistency, quality and client satisfaction.
WSR: How does client segmentation work, and how does it translate into better service and an advisor advantage?
Considine: Effective client segmentation starts by grouping clients based on factors such as revenue contribution, financial complexity, goals and service needs. Firms then intentionally design service models and tiers around those segments defining meeting cadence, planning depth, investment strategy, pricing and advisor involvement for each.
Strategic client segmentation creates clarity around the client experience.
Strategic client segmentation creates clarity around the client experience. Clients receive services specifically aligned with their needs and expectations, while advisors gain structure around how they allocate time and resources. With the right partners, technology and resources in place, advisors can manage multiple segments efficiently without increasing operational burden.
The result is a more consistent client experience, improved advisor productivity and a scalable growth model. Over time, this approach allows advisors to maintain high-quality engagement across the entire client base, creating a competitive advantage in both service and growth.
WSR: What are the short-term and long-term benefits of client segmentation?
Considine: In the short term, segmentation helps firms address capacity challenges, improve advisor efficiency and reduce service friction. It brings immediate clarity around different client levels and how they are served, unlocking profitability and improving the day-to-day advisor experience.
Long term, strategic segmentation becomes foundational to sustainable growth. It enables firms to scale without sacrificing quality, build differentiated and personalized client experiences and create a pipeline for future client relationships. By aligning service models to evolving client needs, RIAs position themselves to retain assets across generations, adapt to market shifts, best serve clients at different stages and compete more effectively in an evolving advice landscape.
Jeff Berman, Contributing Editor and Reporter at Wealth Solutions Report, can be reached at jeff.berman@wealthsolutionsreport.com.
