Guide to Client Segmentation under Consumer Duty

This guide provides financial advice professionals with a comprehensive approach to client segmentation in the context of Consumer Duty. It outlines the importance of effectively segmenting clients to meet regulatory obligations and enhance service delivery. The guide discusses the evolving nature of client segmentation, emphasizing the need for firms to understand client characteristics and their impact on service experiences and outcomes. It presents methodologies for implementing segmentation, including insights from interviews with financial professionals and independent research. The document also highlights the significance of adapting service propositions based on client needs, preferences, and life stages. Additionally, it addresses the challenges firms face in evidencing their segmentation processes and the benefits of revisiting segmentation strategies to improve client relationships. The guide serves as a resource for firms at various stages of segmentation implementation, offering actionable tips and best practices to support their objectives.