Practices that segmented their client base reported a 127 per cent increase in profit, according to joint research from Business Health and Securitor.
Practices that did 'effective' segmentation such as differentiated services constant reviews reported a 15 per cent increase in profit.
In comparison, practices that did not segment their client base recorded flat profit.
The joint research analyses information from Business Health's data which includes information on more than 2000 Australian advice practices.
"Benchmarking yourself against your peers is a very important measure and we want to support our advisers with quality data," Securitor head Neil Younger said.
The report also found that 53 per cent of principals have an external adviser and a further 15 per cent have an external coast who they meet once a year.
Those principals that met quarterly with their coach reported a 94 per cent increase in profit.
The level of client contact also contributed to profit growth, according to the report.
Advisers who contacted "A" class clients less than 5 times per year reported a flat profit. Advisers who contacted these clients between 5 to 10 times a year reported a 174 per cent increase in profit.
"In particular, the research highlights the importance and profitability of key focus areas including the value of effective business planning, segmenting your client base and seeking external input," Younger said.
