Segmentation at Supernova is not as simple as it sounds. Some advisors and some firms teach that segmentation is nothing more than division. That is, dividing your book up into three or four different categories. They may be based on amount of revenue, or the amount of assets in the account. Division is not segmentation.
Segmentation for Supernova means that you identify your ideal clients. There may be clients who meet your revenue target or asset target but who are not your ideal clients. Segmentation at Supernova means that you have one group of clients of no more than 100 households who all receive first-class, supernova service.
Supernova segmentation is designed to create a manageable practice. 100 clients is an optimal number. While production per client is important it is not the only factor. Growth of assets under management is a product of a well-implemented Supernova segmentation process. Segmentation is about maintaining high standards and helping every client get the exceptional service they deserve.
12-4-2 is the minimal service standard and becomes a key part of your brand. When you are successful at bringing in new relationships the segmentation process will continue, that is, every time you add a new relationship you will also in a relationship that does not meet your minimum account standards. You never want to have more than your maximum number of accounts. To be successful at acquisition, you will always be bringing in new relationships but unless you continue to segment your book you will soon create another unmanageable practice.
Remember, you grow your practice as a Supernova advisor not by adding a greater number of accounts and households to your practice but by continually raising your minimum. When you make a segmentation and ongoing process you are also making your organization an efficient and careful ritual, which allows you to be faithful in delivering 12-4-2.
Exceptional client service leads to exceptional growth and it all begins with understanding and making segmentation and ongoing process.