/crm-client-lifecycle

name: crm-client-lifecycle
description: "Design and optimize CRM systems and client lifecycle workflows for advisory firms, covering segmentation, household management, service tiers, and retention analytics. Use when the user asks about client segmentation models, building household structures, defining service tier SLAs, scheduling reviews, tracking lifecycle stages from prospect through estate, identifying at-risk clients, analyzing wallet share, consolidating held-away assets, or evaluating CRM platforms. Also trigger when users mention 'client segmentation', 'retention risk', 'at-risk clients', 'household linking', 'multi-generational', 'service tiers', 'Redtail', 'Wealthbox', 'Salesforce for advisors', 'referral tracking', or 'contact gap'."

CRM & Client Lifecycle

Core Concepts

Client Segmentation Models

Client segmentation assigns every household to a category that determines the level of service, contact frequency, review cadence, and resource allocation the firm provides. Without systematic segmentation, advisors default to reactive service — responding to whoever calls — rather than proactive, tiered engagement that matches effort to relationship value.

**AUM-based segmentation** is the most common starting point. A typical three-tier model:

| Tier | Household AUM | Typical Label | |------|--------------|---------------| | A | $2,000,000+ | Platinum | | B | $500,000 - $1,999,999 | Gold | | C | Under $500,000 | Silver |

AUM-based segmentation is simple to implement because AUM data is readily available from the custodian or portfolio management system. However, AUM alone is an incomplete measure of relationship value.

**Revenue-based segmentation** uses total annual fees generated by the household rather than asset levels. This captures value more accurately when fee schedules vary across clients, when some households pay financial planning fees in addition to AUM fees, or when clients have complex billing arrangements. Revenue data comes from the billing system and should be annualized to smooth quarterly fluctuations.

**Multi-factor segmentation** combines quantitative and qualitative dimensions for a more complete picture:

• Assets under management (current relationship size)
• Revenue generated (actual economic value to the firm)
• Growth potential (age, career trajectory, expected inheritances, held-away assets not yet consolidated)
• Referral activity (clients who actively refer new prospects)
• Relationship depth (number of services engaged — investment management, financial planning, tax planning, estate planning, insurance)
• Strategic importance (centers of influence, professional advisors who refer, board members, community leaders)

**Behavioral segmentation** classifies clients by engagement patterns rather than dollar amounts. Categories might include: highly engaged (frequent contact, attends events, uses the client portal), moderately engaged (responds to outreach, attends annual reviews), passively engaged (minimal contact, rarely initiates), and disengaged (does not respond to outreach, skips reviews). Behavioral segmentation identifies retention risk and helps advisors tailor their communication approach.

**Segmentation review cadence.** Client segments should be re-evaluated at least annually, typically after year-end billing and performance reporting. Major life events (inheritance, business sale, divorce, retirement) can trigger an immediate re-segmentation. The CRM should flag households whose AUM or revenue has crossed a tier boundary so the advisor can adjust the service level.

Household Management

The household is the fundamental unit of relationship management in wealth advisory. A household groups related individuals, their accounts, and associated entities into a single relationship view that reflects how the family thinks about its finances.

**Household composition** typically includes:

• Primary client (the individual who is the main point of contact and decision-maker)
• Spouse or partner
• Dependent children (relevant for 529 plans, custodial accounts, and beneficiary designations)
• Adult children who may be clients in their own right or future clients
• Trusts (revocable, irrevocable, charitable) established by the primary client or spouse
• Business entities (LLCs, S-Corps, partnerships) owned by household members
• Family foundations or donor-advised funds

**Account-to-household linking.** Every account in the portfolio management system and custodian must be linked to a household in the CRM. Account types within a household commonly include: individual taxable, joint taxable, traditional IRA, Roth IRA, SEP IRA, rollover IRA, inherited IRA, revocable trust, irrevocable trust, UTMA/UGMA custodial, 529 plan, entity accounts, and charitable accounts. Accurate linking is essential for household-level AUM aggregation, fee tier determination, consolidated reporting, and holistic financial planning.

**Household AUM aggregation.** The CRM should display total household AUM by pulling position-level data from the portfolio management system or custodian feeds. Aggregation must handle: accounts at multiple custodians, held-away assets (employer retirement plans, outside brokerage accounts, bank accounts) that are tracked but not managed, and assets under advisement (where the firm provides guidance but does not have discretion).

**Multi-generational relationships.** Wealth management relationships increasingly span generations. The CRM should support parent-child household linking so that when a client's adult child becomes a client, the advisor can see the full family relationship, track generational wealth transfer, and coordinate estate planning across generations. This is critical for client retention during the intergenerational wealth transfer projected over the coming decades — estimated at roughly $84 trillion through 2045 (Cerulli Associates estimate, published 2022; verify current projections).

**Primary