Join host Matt Sonnen and a panel of COOs, as they share an open discussion about operational and technology best practices for the RIA industry, and shed a light on the tremendously important work COOs perform on a day-to-day basis.
All content for The COO Roundtable is the property of Coldstream Wealth Managment and is served directly from their servers
with no modification, redirects, or rehosting. The podcast is not affiliated with or endorsed by Podjoint in any way.
Join host Matt Sonnen and a panel of COOs, as they share an open discussion about operational and technology best practices for the RIA industry, and shed a light on the tremendously important work COOs perform on a day-to-day basis.
In Episode 74, Matt steps away from our usual interview format to share a vital message that could reshape how you approach your business. Drawing insights from his recent article in RIABiz, titled, How Fiduciary Duty Is Causing Confused Advisors to Run Bad Businesses, he dives deep into the crucial themes of firm capacity and RIA scalability. The primary function of a COO is to strategically allocate resources -- both human and technological -- across an expanding client base in a way that ensures every client experiences white glove service. In Matt’s mind, success as a COO hinges on a maniacal focus on Client Segmentation. Because we are all constrained by the fact that there are only 24 hours in a day, if an RIA is overly focused on providing extensive services to smaller clients, it stands to reason that larger clients may be underserved. This imbalance not only affects client satisfaction but also undermines business growth. In this enlightening episode, Matt addresses a common issue: many advisors and RIA owners are misinterpreting the concept of Fiduciary Duty, leading to poor client segmentation practices. Here are the key takeaways:
Two major misconceptions about Client Segmentation
The four primary benefits of Client Segmentation, according to Fidelity, and their relevance to a COO’s responsibilities
Various methods for a COO to calculate their firm’s cost to serve clients
Four steps RIAs should take to assess team capacity and the profitability of client relationships, according to Julie Littlechild
The importance of both Quantitative and Qualitative aspects of Client Segmentation
How to build a matrix of client service tiers
Why the 80/20 Rule is critical to your Client Segmentation analysis
Matt’s recent RIABiz article can be found here: How Fiduciary Duty Is Causing Confused Advisors to Run Bad Businesses
Fidelity’s research on Client Segmentation can be found here: Four Steps to Successful Client Segmentation
Fidelity’s research calculating the national average cost to serve a client ($9,222) can be found here: Scaling Your Financial Advisory Business
Julie Littlechild’s Kitces.com article can be found here: 11 Action Steps to Design an Extraordinary Client Experience
The COO Roundtable
Join host Matt Sonnen and a panel of COOs, as they share an open discussion about operational and technology best practices for the RIA industry, and shed a light on the tremendously important work COOs perform on a day-to-day basis.
