Segmentation-effective Strategies—Reduction of the Risk of Losing a Wealthy Client

The article presents how the changes on the financial markets influence the choice of the appropriate segmentation strategy, how they support a personalized approach to the customer, and the accurate estimate of the customer’s financial capacity and to build lasting relationships with customers.

The authors suggest the special importance of this process in the Wealth Management segment, where it becomes a key factor in the battle for the customer, and mitigation of the risk of losing the customer. In addition, the authors discuss and give arguments that the individualization of needs, preferences or behavior is not possible for each client individually, but through an effective design of the process of segmentation the bank is able to reduce the risk of missed sales activities by constructing groups of similar set of the analyzed components. In conclusion, attention is drawn to two very important, from the point of view of the segmentation, areas of the segmentation analysis. First, preparing and building new customer segmentation strategies Wealth Management, do not forget the cultural diversity of the regions of the world. Secondly—the emerging EU Directives on Basel II, MiFID and the Prevention ofMoney Laundering make that the way of the customer segmentation must be consistent with the construction law facing the EU directives for the local regulators.