February 23, 2021 | Stamford, CT — Asset managers are discovering a new tool in the fight for increased profitability in an increasingly competitive institutional market: persona client segmentation. 

Like companies in many other fields, asset managers have always divided their client base by size, geography and sales channel. But as investment markets become more complex and the competition for institutional assets more intense, managers need new and more sophisticated methods to engage institutional investors. 

A new white paper from Greenwich Associates, Client Segmentation in Asset Management: Cracking the Implementation Conundrum, lays out the basics of persona client segmentation and provides a systematic implementation guide for managers.

“Client segmentation based on needs and behaviors has the potential to separate best-in-class managers from the pack,” says Mark Buckley, Greenwich Associates Relationship Director and author of the report. “However, without a blueprint, implementation can be daunting because complexity increases dramatically as managers move away from a one-size-fits-all approach.”

Solving the Implementation Conundrum
Due to the increased complexity and the firmwide changes associated with a switch to a persona segmentation strategy, asset managers need a detailed plan spanning multiple functions across the organization. 

The new Greenwich Report provides managers with a step-by-step approach that breaks down the implementation process into three main phases: 1) Segment current clients and prospects and define target segments; 2) Choose and test the segmentation implementation approach, and 3) Operationalize segmentation practices—including monitoring and continuous improvement.

“For an initiative this important, asset managers need to focus and work deliberately, following a detailed plan,” says Mark Buckley. “Asset managers who devote the time and resources to align customized sales and service strategies to the unique behaviors and characteristics of the market can increase sales effectiveness, improve client satisfaction and retention rates, and increase profitability.”