top of page

PSA 4 - Client Segmentation

"Do not be afraid to go out on a limb...that's where the fruit is."

 - H. Jackson Brown Jr.

WHY is this meaningful to you?

Many Credit Unions already realize the importance of using some sort of client segmentation model. After all, if 80% of the organization's revenue is derived from 20% of its client, it makes sense to figure out exactly who these clients are. The right amount of time and energy must be invested in this highly deserving group of clients –to competitor-proof and attract more like them.

Think about the following questions:

  • Do I know which clients contribute significantly to my profitability?

  • Do they generate a significant amount of production? 

  • Do you have any unproductive clients who do not positively contribute to the Credit Union/Organization’s profitability?

  • How exactly does the 80/20 principle play out for you?

  • When it comes to managing these relations, are you allocating your time appropriately to your clients?


Now, most Financial Planners simply classify their clients according to assets, and assets are a logical starting point for any segmentation system. By moving to a more detailed system, however, you can offer better service to your high value clients, attract more qualified referrals and increase your productivity.  We highly recommend you follow the three-tiered Triple A Approach to create a meaningful framework for sorting and organizing your clients. 

WHO is this proven strategy designed for?


For those who want to meaningfully sort and organize all their clients - the first step in strategically allocating your time, energy and money.

WHAT should you expect?


You will: 

  • Know which segment every client or any prospective client falls into

  • Understand the significance of each segment and how it impacts your business

WHAT you need to know

HOW to Take Action & Implement Successfully?


You should spend more of your time with the clients who generate more of the revenue. Usually the top 20% of your clients generate 80% of the organizational revenue, so you should spend 80% of your time serving them. However, most organizations do exactly the opposite, wasting time and energy on the 80% of their clients who only generate 20% of the revenue. By using client segmentation and the A-AAA approach, you can avoid this trap.

  1. Review the Client Segmentation Worksheet. Use this worksheet to apply the CUSO segmentation system.

    • The criteria you establish will determine the future growth of your business - ensure that you have considered each option carefully.

    • Be confident that your definitions for each segmentation group will help you to achieve your goals and objectives.

    • Ensure that the system is meaningful to you, and can evolve with your business.

  2. Complete Section 1 to develop your Ideal Client Equation. This provides a starting point for defining your ideal practice in a quantitative manner and factors in two important criteria:

    • Desired income and/or assets

    • Capacity to service a manageable number of high value relationships

    • Consider the attitudes and characteristics of your Ideal Client

    • Consider the advocacy criteria which define your Ideal Client

  3. Complete Section 2 to develop your Knock-Out Factors. This provides a starting point for clearly articulating the 'deal breakers':

    • The specific and undesirable traits as defined by assets (or income) and attitude that you are not prepared to deal with OR

    • Identify individuals who are better suited to work with other representatives at the Credit Union based on their current situation and financial needs.

  4. Review and understand Section 3 of the Client Segmentation. This provides a starting point to create a meaningful framework for you to sort and organize your existing clients as well as, appropriately classify all new clients added to your business.

  5. Communicate the Ideal Client, Knock-Out Factors and Client Segmentation with everyone on your team, which may extend to those in the branch.

  6. Place a copy of the Ideal Client, Knock-Out Factors and Client Segmentation in your PSA Binder for future reference.

  7. Make sure your contact management system has a designated field for each client contact to store the client segmentation code.


Watch Here to Learn More




PSA 4/5 Client Classification

bottom of page