HNW Targeting and Retention Strategies
All the vital news, analysis, and commentary curated by our industry experts.
"HNW Targeting and Retention Strategies", report analyzes and sizes key segments of the global HNW market, and provides detailed recommendations how to best target and service these individuals. The report also provides a detailed discussion on the effectiveness of different HNW client retention strategies. It is based on our proprietary Global Wealth Managers Survey.
48% of HNW individuals are professionals, making them the largest target market, closely followed by entrepreneurs at 46%. While considerably smaller in size, providers will also find HNW expats an attractive segment thanks to their more complex affairs resulting in a greater need for wealth management services. Despite the above segments’ differing service requirements, we see very little difference when it comes to providers’ targeting strategies. While client referrals are the most successful means of acquisition, wealth managers should adopt a more differentiated approach. Providers targeting professionals will find external referrals an effective channel, while investment banking referrals will prove fruitful in the entrepreneur space.
Specifically the report –
– analyzes the size of the global HNW market and key client groups
– analyzes the proportion of HNW clients sourced via different client acquisition tools
– provides recommendations regarding the effectiveness of various acquisition tools across different target segments
– analyzes how to best service different HNW segments
– analyzes the effectiveness of different client retention strategies in the HNW space.
– 52.3% of global HNW investors reside in North America, but growth is more pronounced in Latin America, where the number of HNW individuals is forecast to grow by 48% between 2017 and 2021.
– Professionals make up 5 million individuals of the global HNW market, 4.8 million being entrepreneurs.
– 28.3% of HNW clients have been acquired through client referrals, making it the most successful channel.
– A longstanding advisor relationship is the most effective means of client retention, followed by portfolio performance and a firm’s brand image.
Reasons to Buy
– Understand the size and service requirements of key client groups
– Develop and enhance your client targeting strategies using our proprietary data on the effectiveness of various targeting strategies across key target groups
– Minimize customer churn rates by gaining a detailed understanding of the effectiveness of different retention tools
– Tailor your product portfolio to match demand patterns across the different segments discussed
– Understand what selected competitors are doing to successfully reach out to different target groups.
China Construction Bank
Bank of China
Agricultural Bank of China
China Merchants Bank
Table of Contents
Table of Contents
1. EXECUTIVE SUMMARY 1
1.1. Professionals and entrepreneurs make up the vast majority of the
10.5 million-strong HNW population 1
1.2. Key findings 1
1.3. Critical success factors 1
2. HNW ENTREPRENEURS AND PROFESSIONALS COMPRISE ALMOST EQUALLY LARGE TARGET GROUPS 8
2.1. North America is the largest target market, but growth can be found in Latin America and Asia Pacific 8
2.1.1. A comparatively high proportion of unadvised HNW wealth makes Asia Pacific an attractive target market 9
2.1.2. A focus on emerging markets promises rapid business growth, but reaching out to investors early on is paramount 11
2.2. Professionals constitute the largest target market, closely followed by entrepreneurs 11
2.2.1. Professionals constitute the largest target group globally 12
2.2.2. The entrepreneurial spirit runs high in Eastern Europe 13
2.2.3. HNW entrepreneurs are willing to expatriate to start their business ventures 16
2.2.4. While only constituting
11.4% of the global HNW population, the wider expat community also make for a lucrative target market in key hubs 17
2.3. The demographic profiles of key HNW segments differ only marginally, with the exception of inheritors 18
2.3.1. Female inheritors are an often overlooked segment 18
3. PROVIDERS SHOULD PURSUE A MORE TAILORED APPROACH WHEN REACHING OUT TO DIFFERENT SEGMENTS 20
3.1. A high degree of competition calls for tailored acquisition strategies 20
3.2. Client referrals are the number one source of new business, followed by relationship managers’ own contacts, and internal referrals 21
3.2.1. Generating positive word of mouth is paramount in the HNW space 21
3.2.2. Despite coming in second as a customer acquisition tool, internal referrals remain underutilized 23
3.2.3. The importance of relationship managers’ own contacts as an acquisition tool calls for a greater focus on brand building 25
3.2.4. Cold-calling is not an effective means of reaching out to HNW individuals 26
3.3. Targeting professionals means leveraging cross-selling opportunities with the SME banking department 27
3.3.1. Professionals running small businesses will appreciate a wide array of lending products 27
3.3.2. Given professionals’ broader servicing needs, close collaboration with the SME banking team is critical 28
3.3.3. Providers targeting self-employed professionals should place greater attention on external partnerships 29
3.3.4. Internal partnerships are a critical channel of new business in markets where wealth is predominately held in the hands of the mass affluent 31
3.4. Investment banking referrals are critical when targeting entrepreneurs 32
3.4.1. Globally, 7.8% of HNW entrepreneur clients have been sourced through investment banking referrals 32
3.4.2. Partnerships with accelerators will allow wealth managers to target entrepreneurs at an early stage 33
3.4.3. Involving the next generation of business owners is a must in countries with an aging entrepreneurial community 34
3.5. International providers enjoy an advantage targeting expats, but domestic ones will find external referrals effective 36
3.5.1. Reaching out to expats pre-departure and establishing intra-country referral structures is critical 36
3.5.2. External partnerships are particularly important for domestically focused players 38
4. WEALTH MANAGERS SHOULDN’T SOLELY RELY ON ADVISORS TO FOSTER LOYALTY 40
4.1. Advisors are critical in fostering loyalty 40
4.1.1. Having a CRM system in place minimizes the risk of client loss when a relationship manager leaves 41
4.1.2. Creating multiple client touchpoints within the organization reduces the reliance on a single advisor 42
4.2. Extensive brand-building efforts, an outstanding track record, and a wide service proposition all contribute to customer loyalty 42
4.2.1. While critical as a retention tool, the importance of a positive investment track also poses challenges in times of increased market volatility 42
4.2.2. Brand building on a corporate level has to be more of a focus 43
4.2.3. A broad product offering reduces the likelihood of clients reaching out to competitors 44
5. APPENDIX 46
5.1. Abbreviations and acronyms 46
5.2. Definitions 46
5.2.1. Entrepreneur 46
5.2.2. Expat 46
5.2.3. HNW 46
5.2.4. Professional 46
5.3. Supplementary data 47
5.4. Methodology 52
5.4.1. GlobalData’s 2017 Global Wealth Managers Survey 52
5.4.2. GlobalData’s 2016 Global Wealth Managers Survey 52
5.4.3. GlobalData WealthInsight 52
5.4.4. Global Wealth Model methodology 53
5.4.5. Effectiveness score 53
5.4.6. Service level of demand score 53
5.4.1. Exchange rates 53
5.5. Bibliography 54
5.6. Further reading 55
Frequently asked questions
Tel +44 20 7947 2745
Every customer’s requirement is unique. With over 220,000 construction projects tracked, we can create a tailored dataset for you based on the types of projects you are looking for. Please get in touch with your specific requirements and we can send you a quote.
Business Intelligence & Marketing Manager, SAL Heavy Lift
“The GlobalData platform is our go-to tool for intelligence services. GlobalData provides an easy way to access comprehensive intelligence data around multiple sectors, which essentially makes it a one-for-all intelligence platform, for tendering and approaching customers.
GlobalData is very customer orientated, with a high degree of personalised services, which benefits everyday use. The highly detailed project intelligence and forecast reports can be utilised across multiple departments and workflow scopes, from operational to strategic level, and often support strategic decisions. GlobalData Analytics and visualisation solutions has contributed positively when preparing management presentations and strategic papers.”
Market Analyst & Management, Liebherr-Werk
“COVID-19 has caused significant interference to our business and the COVID-19 intelligence from GlobalData has helped us reach better decisions around strategy. These two highlights have helped enormously to understand the projections into the future concerning our business units, we also utilise the project database to source new projects for Liebherr-Werk to use as an additional source to pitch for new business.”
Head of Key Accounts, Saab AB
Your daily news has saved me a lot of time and keeps me up-to-date with what is happening in the market, I like that you almost always have a link to the source origin. We also use your market data in our Strategic Business Process to support our business decisions. By having everything in one place on the Intelligence Center it has saved me a lot of time versus looking on different sources, the alert function also helps with this.
Marketing Intelligence Manager, Portugal Foods
Having used several other market research companies, I find that GlobalData manages to provide that ‘difficult-to-get’ market data that others can’t, as well as very diverse and complete consumer surveys.
Head of Customer Insight and Research, Standard Chartered
Our experience with GlobalData has been very good, from the platform itself to the people. I find that the analysts and the account team have a high level of customer focus and responsiveness and therefore I can always rely on. The platform is more holistic than other providers. It is convenient and almost like a one stop shop. The pricing suite is highly competitive and value for our organisation.
I like reports that inform new segments such as the analysis on generation Z, millennials, the impact of COVID 19 to our banking customers and their new channel habits. Secondly the specialist insight on affluent sector significantly increases our understanding about this group of customers. The combination of those give us depth and breadth of the evolving market.
I’m in the business of answering and helping people make decisions so with the intelligence center I can do that, effectively and efficiently. I can share quickly key insights that answer and satisfy our country stakeholders by giving them many quality studies and primary research about competitive landscape beyond the outlook of our bank. It helps me be seen as an advisory partner and that makes a big difference. A big benefit of our subscription is that no one holds the whole data and because it allows so many people, so many different parts of our organisation have access, it enables all teams to have the same level of knowledge and decision support.
Head of Consumer Sensory Insights, Givaudan
“I know that I can always rely on Globaldata’s work when I’m searching for the right consumer and market insights. I use Globaldata insights to understand the changing market & consumer landscape and help create better taste & wellbeing solutions for our customers in food, beverage and healthcare industries.
Globaldata has the right data and the reports are of very high quality compared to your competitors. Globaldata not only has overall market sizes & consumer insights on food & beverages but also provides insights at the ingredient & flavour level. That is key for B2B companies like Givaudan. This way we understand our customers’ business and also gain insight to our unique industry”
Senior Account Manager, TSYS
GlobalData provides a great range of information and reports on various sectors that is highly relevant, timely, easy to access and utilise. The reports and data dashboards help engagement with clients; they provide valuable industry and market insights that can enrich client conversations and can help in the shaping of value propositions. Moreover, using GlobalData products has helped increase my knowledge of the finance sector, the players within it, and the general threats and opportunities.
I find the consumer surveys that are carried out to be extremely beneficial and not something I have seen anywhere else. They provided an insightful view of why and which consumers take (or don’t) particular financial products. This can help shape conversations with clients to ensure they make the right strategic decisions for their business.
One of the challenges I have found is that data in the payments space is often piecemeal. With GD all of the data I need is in one place, but it also comes with additional market reports that provide useful extra context and information. Having the ability to set-up alerts on relevant movements in the industry, be it competitors or customers, and have them emailed directly to me, ensures I get early sight of industry activity and don’t have to search for news.