The Way to Your High-Net-Worth Client's Heart May Be Through Their Computer Screen


“There are more millionaires in the U.S. than ever before”.

You’ve probably heard this industry buzz-statement more times than you can count. It’s no secret that wealth creation from our current bull market has been substantial. Naturally, the opportunity to secure a high-net-worth business is growing.

But is your firm positioned to attract high-net-worth clients?

The bad news is that everyone is vying for the attention of high-net-worth investors. Who wouldn’t? Less clients with more assets generally equates to larger revenues for your firm. The good news is with the use of a few simple tactics, you can cut through the noise to better garner attention from the wealthy and ultra-wealthy.

Let’s first look at the high-net-worth investor profile.

We know that high-net-worth investors require a more robust and sophisticated approach to wealth management. But by digging a bit deeper, we can uncover a few key characteristics that will help us better understand the HNW investor and prepare to cater to their needs and wants.

Noteworthy HNW Stats:

  • Nearly 90% of HNW investors under 40 expect all or most of their investment experience to be digital by 2020.* Nearly half of older investors feel the same.1
  • The ability to interact in-person and through automated channels, on demand, is significant in over two-thirds of HNW investors' decision to increase or decrease assets with a firm.2
  • 86.7% of HNW investors under 30 and 68.7% aged 30-39 would consider using automated investment solutions.1
  • Almost half of HNW investors aged 40 and over (49.3%) would leave a firm if digital channels weren't integrated. That percentage increases to just under 80% for younger investors.1

Technology is playing a large factor in the evaluation process among HNW clients. They expect their relationship to have a heavy digital component, and more importantly, display an understanding of the value delivered by technology – showing strong attitudes toward a seamless and integrated digital investment experience. 

What can you do?

Start with your website – the virtual front door of your business. This is the first opportunity to showcase your digital competency, and establish trust with prospective clients.

Instill authenticity and transparency throughout your digital communications. Tell your story, giving visitors an understanding of why you exist and whether your core mission aligns with their values. Be transparent with fees and services provided. Reducing uncertainty builds trust. It also helps you more easily communicate the full range of financial services provided by your firm.

While transparent and effective digital communication is key to resonating with prospects, it’s only one ingredient to the solution. Go a step further, and consider the functionality of your website. HNW investors have high digital expectations, and your website serves as a precursor to your digital competency within the investment experience. Ensure it is devoid of broken links, blank pages, and formatting issues.

Do an honest review of your website and ask yourself, “Does my web presence accurately reflect the full value I offer HNW clients?” The surge in wealth has created opportunity for advisors to increase their HNW business, but with it is increased expectations. Take some time to understand the HNW target audience and consider how well you’re positioned to align with their values. With a focused approach, you can better align with their preferences and secure consideration in a crowded market.

 

1United States Wealth Report, 2015

2World Wealth Report, 2017

*Original stat specified within 5 years - Capgemini and RBC Wealth Management Global HNW Insights Survey, 2014.