High-Income Clients are Not Created Equal: How Wealth Management Firms Can Deliver a More Satisfying Client Experience by Understanding their Differences

Financial advisors who think high-income clients have the same financial needs and goals are making a potentially costly mistake. This group varies in age, risk tolerance, attitude, spending behaviors, preferences and priorities. To outperform your competition—including robo advisors—you must understand how to deliver a more personalized, satisfying client experience.

As discussed in “The Mass Affluent: What Financial Marketers Need to Know About High-Income Consumers,” posted on TheFinancialBrand.com, financial goals and priorities for this group varies widely. Raddon, a financial services research company, conducted a study on high-income individuals and identified strategic considerations for four distinct segments—High Debt, Low Asset, High Asset and High Net Worth. The article highlights key findings for a combination of investment personas, including:

High-debt, high-income: Typically the youngest of the respondents, this group is likely to have student loans, which may attribute to their high loan-to-deposit ratio. This group is focused on reducing spending and debt.

Low-asset, high-income: These consumers have lower balance levels and lower debt levels, but also have student loans. This segment has a lower net worth and lower than average income and is less likely to use an investment advisor.

High-asset, high-income: This group is inclined to use a primary investment advisor and has high balance levels, the lowest debt levels and low loan-to-deposit ratios.

High-net worth, high-income: The most senior in age amongst the four segments, this consumer group has higher than average income; the highest average balances for deposits, investments and retirement savings; and the lowest of the loan-to-deposit ratio.

You Must Know Your Clients to Personalize Their Experience

While this article focused on branding and marketing to these segments, the findings can be applied to keeping clients in these segments loyal to your firm. Identifying and segmenting clients based on individual priorities, comfort levels, and behaviors enables wealth management firms and financial advisors to service their needs more effectively.

Those who do not invest in understanding each client will struggle to provide the level of service and engagement they expect—particularly for discriminating high-income clients. Winning their trust and loyalty is imperative and can be accelerated with the help of technology.

Use Technology to Provide a Better Client Experience

AKA Enterprise Solutions for financial services empower financial advisors to provide a more satisfying client experience by allowing them to:

  • Capture client-centric information throughout the investment lifecycle and relationship
  • View key metrics and trends in real time through custom dashboards and reports
  • Identify shifts in investment behaviors and client circumstances
  • Automate communications to improve client engagement
  • Target marketing and messaging based on segmented criteria

Getting started with a comprehensive wealth and asset management solution does not have to be complicated. New, cloud-based offerings like Microsoft Dynamics 365 are making it even easier to gain the insight needed to compete in a digitally connected industry. Contact AKA Enterprise Solutions to learn how to better understand your clients and deliver an exceptional experience every time.

By | 2018-07-06T17:41:43+00:00 March 8th, 2017|Uncategorized|0 Comments
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Contributor: AKA Enterprise Solutions

AKA is comprised of professionals with deep experience in business, technology, and their respective industries. Our team members regularly share their knowledge and expertise through blog articles. We hope you find them helpful, and we welcome your comments.

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