Static vs. Dynamic – Are You Missing Real-Time Client Opportunities?

Is your advisor segmentation model a dusty old file, or a real-time roadmap? For years, asset management distribution and marketing teams have relied on static segmentation; a fixed way of grouping clients based on broad criteria like their firm/channel-type, total Assets Under Management (AUM) or a general production (sales) bracket.

The Problem with Static Segments

While this approach offers basic organization and a way to prioritize coverage of small-to-large opportunities, it ultimately fails to capture additional crucial segmentation elements: the advisor’s immediate needs, changing behaviors and current intent. An advisor who just placed his first allocation to your firm or aggressively marketing his services is fundamentally different from other advisors, regardless of their AUM tier.

The solution is moving from static sorting to proactive serving with dynamic segmentation. This approach is fluid, behavior-based and adapts in real-time to an advisor's changing needs and market conditions, ensuring your engagement is always accurate and relevant.

Defining Dynamic Segmentation

Dynamic segmentation is the process of continuously reviewing and adjusting advisor groups based on real-time data, behaviors, preferences and interactions, rather than fixed attributes.

Key Differences from Traditional (Static) Segmentation:

It moves the asset managers’ focus from who the advisor is to who the advisor is AND what the advisor is doing right now. This is a critical distinction in delivering timely and effective service. It is also not just one model, but several models—with various data and information sources—layered upon one another, informing critical operational and engagement decisions. The layers may include the following:

The Core Components

SS&C's Distribution Solutions team is available to help provide valuable data and insights, as well as to support dynamic segmentation projects.

There is a misconception that dynamic segmentation means advisor segments are constantly changing.

 

This is not the case!

 

For example, the Value and Opportunity metrics don't change often, but capturing changes in buying behavior, interests, firm changes, etc. enables asset managers to "segment the segments" and identify real-time changes, heightening prioritization and focus on engagement efforts.

Dynamic segmentation relies on three key components to work effectively:

1. Data Collection: Gathering data from all advisor touchpoints, including website visits, app activity, email engagement and CRM notes.
2. Segmentation Rules and Journey Mapping: Defining specific criteria that automatically move an advisor in or out of a segment. For example, an advisor who accesses the asset manager’s portfolio construction online tool is instantly moved to the "portfolio construction specialist" playbook. Or even more simply, a brand-new producing advisor is moved from prospect to client, which has implications for coverage and engagement plans.
3. Real-Time Updates: Automated systems that ensure the advisor’s current segment is always accurate. This prevents the asset manager from sending a retirement planning email to an advisor who has already confirmed he is focusing on wealth accumulation with the wholesaler two days ago.

Why Dynamic Segmentation is a Game-Changer for Asset Managers

For asset managers, adopting a dynamic approach shifts the focus from simply sorting advisors to proactively serving them. This is where coverage efficiency and client experience intersect for maximum growth.

• Hyper-Personalization at Scale: Dynamic segmentation allows asset managers to deliver targeted messaging and services that align with an advisor's immediate needs, which dramatically increases advocacy and loyalty. If an advisor searches articles on tech/AI stocks, your system(s) can instantly trigger a personalized outreach with commentary from your technology analyst and/or information on your high-growth portfolio.
• Improved Efficiency and Capacity: This approach helps asset managers allocate their most valuable resource, their time, effectively. By focusing on advisors who need a specific service right now or have the highest growth potential, distribution leaders ensure the right service model is applied to the right revenue tier, maximizing capacity.
• Predictive Targeting: Using behavioral data with artificial intelligence (AI) can potentially suggest two things: 1) an advisor’s next likely action and 2) the asset manager’s next best action with that advisor. This could include predicting their churn probability (allowing for proactive retention efforts), their propensity to purchase a new product (allowing for timely cross-selling), or the correct messaging and mode of engagement to move the advisor along the optimal experience journey.
• Maximizing Revenue: Dynamic segmentation ensures that marketing and distribution dollars are spent on the most relevant campaigns and activities for each group, leading to better conversions and a higher customer lifetime value (CLV). It ensures the asset manager spends the most effort on the advisors who offer the best mix of present and future revenue (and profitability).

Act Now

The financial lives of your clients are dynamic and constantly changing. The rise of fintech, real-time data and personalized digital experiences means a static segmentation model is no longer sufficient to maintain a competitive edge.

To build more resilient, profitable and client-centric distribution and marketing efforts, asset managers must move beyond traditional, static methods and embrace data-driven dynamic segmentation. By making your segmentation model as responsive as the market itself, you are not just organizing advisors, you are optimizing every advisor experience and future-proofing your firm.

Contact us to learn how SS&C can help you get started.