Client Segmentation Worksheet

Try our easy-to-use, interactive worksheet that allows you to analyze your clients and build client segmentation tiers.

The Client Segmentation Worksheet

Once you understand the value of segmenting your clients, it’s time to get hands-on analyzing your clients and organizing them into servicing tiers.

The goal is to know the Customer Lifetime Value (CLV) of each of your clients. To make better-informed servicing decisions, it’s important to consider the value of a client over the course of the relationship vs the revenue generated in a single year. Once you know the CLV of each client, you can tailor your service accordingly.

Step #1: Gather Client Records

Compile a list of your clients along with a few pieces of data. For starters, you’ll need the current annual revenue for each client. You’ll also want to know how many referrals you’ve received from each client, estimate how many years you expect to have the client relationship, and flag any clients that require extra care.

Step #2: Estimate How Much Business Your Client Will Refer

Happy, well-served clients are likely to refer others in their circle. That’s why focusing on your top clients should be a priority - to get more like them. A client in a lower tier may be in a position to easily double or triple their value to your firm. You want to include that potential in your calculation of relationship value to make sure these clients get your top tier of service.

Step #3: Identify Clients That Are Difficult to Service

Sometimes working with “high-maintenance” investors pays off; oftentimes, it does not. The amount of time and energy it takes to make a client happy should be considered when segmenting your clients. Those clients who don’t fully delegate day-to-day decision-making to you and instead insist on frequent hand-holding may be less valuable than a client who is satisfied with a more systematic servicing approach.

Step #4: Calculate Your Customer Lifetime Value (CLV)

A 35-year-old investor might not have the assets of a 60-year-old investor but might earn your firm much more money in the long run. To calculate CLV, multiply yearly revenue and referrals by the estimated years of service. Our calculator weighs referrals to 25% and calculates ease of servicing.

((Revenue - Servicing) + (Referrals x 0.25)) x Yearly Revenue = CLV

Step #5: Rank & Segment Your Clients

Once you have compiled your clients’ data, it’s time to begin ranking them. Decide what you want your segmentation thresholds to be. For instance, you may decide to split your clients into thirds - A, B, C. It should become clear what clients deserve your white-glove level of service versus a more automated level of service.

The Client Segmentation Worksheet

Try our easy-to-use, interactive spreadsheet that allows you to analyze your clients and build your client tiers. Also, check out our other client segmentation paper, “The Facts About Client Segmentation (and Why You Should Care).”

Download this guide to gain access to the interactive client segmentation worksheet.


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