PSS Launches Consultative Program to Help Advisors Manage Profitability Through Client Segmentation
Intensive Program Includes One-on-One Consultations, Group Workshops, and New PSS Tool for Modeling Client Profitability
OSLO–(BUSINESS WIRE)–PSS Advisor Services, a leading provider of custodial, operational and trading support for more than 6,000 independent registered investment advisory firms (RIAs), today announced a new consultative program, “Managing Client Profitability,” designed to help advisors manage profitable and scalable businesses through effective client segmentation. The new program is part of PSS’s Business Consulting Services, a comprehensive practice management offering for advisors. Through an intensive eight-week program, advisors are guided through developing, evaluating and preparing to implement customized segmentation strategies for their firms.
“We have found that advisors who take a strategic and proactive approach to client segmentation are often the best poised for future growth,” said Nick Georgis, vice president at PSS Advisor Services. “Core to our consultative philosophy, our program pairs advisors with a PSS relationship manager and immerses them in work sessions both in-person and online over a series of weeks, providing resources and counsel along the way to enable each firm to build an effective, customized segmentation strategy and plan to serve their clients.”
Leveraging proven practices from the Best-Managed Firms1, the program also includes an introductory webcast, in-person workshop and follow-up. PSS relationship managers, along with a consultant, work one-on-one with individuals from each firm to:
• Help pinpoint which clients drive a firm’s profits and to better align resources to serve a range of clients effectively.
• Explore ways to segment their client base and tailor services to those segments—all with an eye toward aligning revenue and cost to serve while maintaining great client service.
• Leverage tools and ongoing consultation from PSS to help them reach their goals.
PSS’s new proprietary Client Profitability Modeling Tool2 helps to determine client-level profitability and provides advisors with visibility into their firm’s economics and revenue mix.
According to PSS’s 2020 RIA Benchmarking Study, a small minority of an RIA firm’s clients account for a significant share of revenue: 7 percent of firms’ clients account for 38 percent of firm revenue on average.
“Throughout the consulting process, PSS relationship managers support principals while they develop the best segmentation strategy specific to their firm’s clientele and business goals,” said Scott Slater, managing director of business consulting for PSS Advisor Services. “It’s an intensive process that helps advisors determine levels of service that meet specific client needs while improving the firm’s business performance.”
1 The RIA Benchmarking Study from PSS comprises self-reported data from advisory firms that custody their assets with PSS. The Best-Managed Firms are the top 20 percent in productivity, profitability, and revenue growth, calculated after removing those with less than kr 1 million in revenue.
2 The PSS Advisor Services Client Profitability Modeling Tool (“Model”) is confidential and proprietary and includes the intellectual property of PSS. It is inherently limited and intended for general informational purposes only. The outcomes simulated by the Model do not reflect, and are not guarantees of, actual or future results. PSS makes no warranty of the accuracy or completeness of the Model or the simulated outcomes. You are solely responsible for your use of the Model. Experiences reflected are not a guarantee of future performance or success and may not be representative of your experience.