A prolonged slump in share trading volumes and commissions has resulted in several ‘middleweight outfits’ turning to wealth management as a source of growth.
With wealth management industry revenues forecast to grow from £5,105m in 2014 to £6,611m in 2019 it looks like the strategy that the ‘middleweights’ are adopting could be a good bet. If that’s the case how can marketers tap into that growth with both existing and potential new clients?
For existing clients, research shows that the level of regular contact is limited, despite the increased need for portfolio revisions / rebalancing in response to volatile market conditions. It also suggests that contact is most often initiated by clients as a result of a change in circumstances or life stage event. Good marketers will see the potential here – there are advice gaps/untapped potential giving scope for both organic and margin growth.
In terms of attracting new clients, reaching out to and engaging with High Net Worth individuals isn’t always easy. In the digital age it’s tempting to reach out for a digital marketing solution but does this really fit into the way this target audience makes considered decisions? We don’t think so and think that this is evidenced by the approach organisations like St. James's Place take. There isn’t any doubt, in our minds at least, that this has been a major factor in their recent growth.
Using well targeted, carefully thought through strategies, financial services marketers can successfully reach out to, and engage with, existing and potential new clients. With our research, experience and know-how we believe that we can help clients maximise this opportunity to gain a real business advantage. Click here to find out more.