Beware the Client Segmentation Route

Stephen Harris

14 March 2007

Strict client segmentation can obscure the best interests of the client, according to Jacqui Brabazon, the London-based global marketing director at American Express Private Bank. “When you’re running a boutique operation, which is what American Express Private bank effectively is, you can afford to look at clients as a segment of one” Ms Brabazon told WealthBriefing. “In our industry segmentation is very difficult to do well. It can also be risky,” she said. According to Ms Brabazon, Amex Private Bank prefers to approach people according to their common affinities but then treat them as individuals. “Even if people have similar issues springing from being, for instance, a professional or an entrepreneur, you shouldn’t necessarily treat them the same way. Having similar issues doesn’t mean that people have similar attitudes, especially when it comes to drivers such as risk appetite,” she said. Worldwide, American Express Private Bank has $23 billion in assets under management. Although the bank’s minimum criteria is $1 million, it focuses on acquiring clients in the $3-10 million range.