With new assets coming in, registered investment advisors (RIAs) are looking for ways to best service their diverse clientele, while also managing profitable and scalable businesses.

In response to this need, Schwab Advisor Services announced the launch of the “Managing Client Profitability” program where Schwab relationship managers consult with RIAs on how best to develop, evaluate and implement customized client segmentation plans. Introductory webcasts, in-person workshops, and one-on-one consultations with support from Schwab relationship managers and consultants are part of an eight-week program that helps advisors fully understand how to best implement the new segmentation strategies.

Scott Slater, managing director of business consulting for Schwab Advisor Services, offers these ideas to advisors on how to better align resources to serve a range of clients effectively:

• Define the experience – Begin tracking and identifying a specific experience for each client group understanding what it takes to serve each client.
• Delegate relationship management – It’s critical that advisors maximize principals’ and senior staff time and ensure that the right team member is supporting the right client.
• Right-size advice and planning offer – To determine a more consistent client experience, consider standardizing the offering, pricing and service model for specific groups of clients, based on common needs.
• Employ à la carte pricing – Use a set pricing method to help clients that need “add-on” services.
• Optimize processes for repeatability – Advisors should institutionalize systems and processes to ensure repeatability, the key to overall efficiency, consistency and reliability.
• Empower and engage employees – The last step is to align the firm’s people and gain their support and buy-in to create a scalable organization.
   

The new multi-week program has currently been rolled out to a target group of RIAs in Chicago, St. Louis, Minneapolis, Dallas, Newport Beach and Seattle, with other markets to come. If you’re an advisor interested in participating, contact your Schwab relationship manager for more details.

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