Client Pruning: Is there an algorithm for this?
Hi, all. I was wondering if any of you have ever been in or seen a situation in which one FA's book had just gotten TOO big and he or she needed to decide which accounts to keep and which to pass on to younger financial advisors. How did they decide? Was there some kind of a science to it? How would you go about deciding what is a good client from a bad one?
My thoughts were, analyzing production credits gained from a clients transactions and dividing that by the amount of "effort" it takes to maintain the client. This effort could be defined by "Number of minutes spent on the phone per week" etc.
Any ideas? Especially on how to quantify "effort" spent on a client? Is it time? Exasperation levels? Does this client's "effort" level fall if he buys the FA a nice gift each christmas? Haha. All joking aside, and input (even jokes) is greatly appreciated.