This article was generously provided by Denis Dionne, Director of Sales, Financial Horizons Group, Quebec Region.
Segmentation is a key factor for your business success. It leads to a satisfied client base and, better yet, it increases the value of your business! A segmented client base allows you to focus your actions on profitable targets and to form a better understanding of your clients.
Segmenting also enables you to sell the right products to the right clients, to better understand what your clients really want and to have more time for quality meetings with them. Now, I bet you are excited to segment your client base, right? And your first question is probably: “But where do I start?” With a plan divided into distinct stages!
- Make a business plan.
- What are your goals?
- What markets would you like to develop?
- What markets are you most familiar with?
- Do I have enough up-to-date knowledge in this area?
- Should I take courses or training to further develop my skills?
- Do I need to conduct market research to better get to know my clients? We can paraphrase the adage about the forest and the trees by rephrasing it as: “If you’re standing right next to a tree, you need to back up to see the forest”; that is why it’s important to consider this question.
- Who is my competition?
- Whom am I targeting?
- Do I need to upgrade my office computer equipment?
- Am I well positioned on social media?
- Is my goal to plan my retirement? If so, do I need to think about succession planning?
- Do I need to find immediate strategies to increase the value of my current client base before considering acquiring additional clients?
There are many different ways to segment. You’ve probably heard of the following methods:
Gold, Silver and Bronze or A, B and C. Use whichever terms your prefer. What really matters are the criteria used to ensure the most accurate segmentation possible:
- Level of Education
Overview of Segmentation Benefits
- Identify your most profitable clients
- Identify your least profitable clients
- Concentrate your efforts on the right clients
- Gain client loyalty
- Provide a V.I.P. service
- Eliminate the competition
- Discuss the needs for new products
- Create a sales opportunity with part of your business
- Create a target client base acquisition opportunity
- Consider the matter of succession and plan for it
- Plan for your retirement
- Grow the value of your business
Lastly, segmentation is essential if you want to have a new vision of your clients and be able to offer them products adapted to their personal circumstances. It will also allow you more time to meet with them. Your business will be optimized, your efficiency will improve and you will discover a newfound joy in the pursuit of your profession. In short, segmenting your client base will open up new horizons!