HNW Wealth Managers: Five Proven Tactics to Find Investors

HNW Wealth Managers: Five Proven Tactics to Find Investors

HNW wealth managers must develop a comprehensive approach that emphasizes their differentiated value

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HNW wealth managers seeking to grow their relationships with investors face a shifting marketplace. Even among wealthy investors, innovations from mass market investing are beginning to have an impact. The shift from active to passive investment, the rise of fintech services, as well as other developments are raising questions about the value of HNW wealth managers. At the same time, there are also significant tailwinds- the overall market size of wealth investors is growing, and many of these investors bring complex needs that advisors are well positioned to address, including retirement planning in changing tax environments and intergenerational wealth transfer.

Within this marketplace, there are a number of basic strategies that don’t work well: cold calls, direct mail, print ads, and bare bones website. In addition, there are some basic checklist items that all HNW wealth managers need to be aware of to get ahead: be available, over communicate, and build relationships beyond the context of individual investment decision. Simply avoiding these pitfalls and meeting table stakes levels of client service will help you get off to a good start in growing your business with high net worth investors. But to truly succeed, you need to go deeper, and you do so by developing these five tactics proven to grow your business with high net worth investors.

Five proven tactics for HNW wealth managers

  1. Develop a comprehensive marketing strategy.
    Reliance on traditional advertising and minimal digital presence are significant barriers to growing your high net worth client base. Instead, you should develop a comprehensive strategic marketing plan that includes a much wider range of elements. Word of mouth and referrals-based prospecting is at the core of high net worth client growth. Many wealthy clients are more inclined to trust recommendations from friends and acquaintances over any other source. But don’t simply hope that by providing great service to your existing clients, they will advocate for you. Help provide them with the basic idea and values that you, yourself, would want to put in front of potential clients, your informal elevator pitch. One key part of this process is transparency. Help clients and other professionals, who are developing the trust required to refer friends and other connections, by giving them insight into your investment process and how that process would work for their connections.
  2. Find a unique standpoint, and make it a distinctive element of your pitch.
    Every potential client you are pursuing will have the option to select from hundreds of other HNW wealth managers. Many of these investment advisors will present a comprehensive offer to clients with a wide range of needs, so find ways to highlight what makes you stand out from the crowd. For instance, if you have a strong background with particular asset classes, a unique network of investment opportunities, or a value-added approach to key financial planning needs, be sure to emphasize these strengths when addressing potential clients. In addition, you should think about developing a client prospecting strategy around the kinds of clients who will benefit most from what you bring to the relationship.
  3. Your digital presence should be fully developed with a wide range of content.
    Your website should be more than just a basic set of contact and marketing information. It should also include a range of educational and thought leadership material that summarizes your value proposition andinvestment approach, as well as provides comments on market trends and developments. You should also have a well-developed and on-brand presence across LinkedIn and other social media platforms, which are responsible for a growing share of initial advisor discovery among potential clients. These platforms can each be used to accomplish distinctive goals, but they should work together to reinforce your core message.
  4. Within the context of your overall strategy, divide efforts between more direct marketing and community cultivation.
    These latter efforts can be time consuming without generating the most immediate results, but they will help you establish a foundation for a stable set of long term relationships and expand your pipeline of potential future clients. Be active and engaged at community networking events and professional gatherings. Find outlets to grow your voice with relevant client groups. Ideally, you want to project what kind of service you provide, as well as seeking out the kinds of clients who will make for the most rewarding relationships from your side as well.
  5. Develop narrowly tailored segments, and target your pitches accordingly.
    It may seem obvious that you should treat each potential client differently, however, this advice is often overlooked. Each prospect will have a different set of interests, needs, and personal affinities, and you should do as much homework as possible to put yourself in a position to address them as an individual. This is an area where maintaining deep relationships with your existing clients can help you succeed with referrals, as they will be in a position to connect you to new clients that know your offering and provide you with an introduction to the needs and interests of their friends and acquaintances.

In today’s market, it is important to go beyond a simple one size fits all strategy. HNW wealth managers must develop a comprehensive approach that emphasizes their differentiated value, grows their digital presence, engages them in community development, and targets narrowly tailored segments. All of these will help you take advantage of the opportunities and address the challenges of working with high net worth investors.

Wealth-X.

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Related image

HNW wealth managers seeking to grow their relationships with investors face a shifting marketplace. Even among wealthy investors, innovations from mass market investing are beginning to have an impact. The shift from active to passive investment, the rise of fintech services, as well as other developments are raising questions about the value of HNW wealth managers. At the same time, there are also significant tailwinds- the overall market size of wealth investors is growing, and many of these investors bring complex needs that advisors are well positioned to address, including retirement planning in changing tax environments and intergenerational wealth transfer.

Within this marketplace, there are a number of basic strategies that don’t work well: cold calls, direct mail, print ads, and bare bones website. In addition, there are some basic checklist items that all HNW wealth managers need to be aware of to get ahead: be available, over communicate, and build relationships beyond the context of individual investment decision. Simply avoiding these pitfalls and meeting table stakes levels of client service will help you get off to a good start in growing your business with high net worth investors. But to truly succeed, you need to go deeper, and you do so by developing these five tactics proven to grow your business with high net worth investors.

Five proven tactics for HNW wealth managers

  1. Develop a comprehensive marketing strategy.
    Reliance on traditional advertising and minimal digital presence are significant barriers to growing your high net worth client base. Instead, you should develop a comprehensive strategic marketing plan that includes a much wider range of elements. Word of mouth and referrals-based prospecting is at the core of high net worth client growth. Many wealthy clients are more inclined to trust recommendations from friends and acquaintances over any other source. But don’t simply hope that by providing great service to your existing clients, they will advocate for you. Help provide them with the basic idea and values that you, yourself, would want to put in front of potential clients, your informal elevator pitch. One key part of this process is transparency. Help clients and other professionals, who are developing the trust required to refer friends and other connections, by giving them insight into your investment process and how that process would work for their connections.
  2. Find a unique standpoint, and make it a distinctive element of your pitch.
    Every potential client you are pursuing will have the option to select from hundreds of other HNW wealth managers. Many of these investment advisors will present a comprehensive offer to clients with a wide range of needs, so find ways to highlight what makes you stand out from the crowd. For instance, if you have a strong background with particular asset classes, a unique network of investment opportunities, or a value-added approach to key financial planning needs, be sure to emphasize these strengths when addressing potential clients. In addition, you should think about developing a client prospecting strategy around the kinds of clients who will benefit most from what you bring to the relationship.
  3. Your digital presence should be fully developed with a wide range of content.
    Your website should be more than just a basic set of contact and marketing information. It should also include a range of educational and thought leadership material that summarizes your value proposition andinvestment approach, as well as provides comments on market trends and developments. You should also have a well-developed and on-brand presence across LinkedIn and other social media platforms, which are responsible for a growing share of initial advisor discovery among potential clients. These platforms can each be used to accomplish distinctive goals, but they should work together to reinforce your core message.
  4. Within the context of your overall strategy, divide efforts between more direct marketing and community cultivation.
    These latter efforts can be time consuming without generating the most immediate results, but they will help you establish a foundation for a stable set of long term relationships and expand your pipeline of potential future clients. Be active and engaged at community networking events and professional gatherings. Find outlets to grow your voice with relevant client groups. Ideally, you want to project what kind of service you provide, as well as seeking out the kinds of clients who will make for the most rewarding relationships from your side as well.
  5. Develop narrowly tailored segments, and target your pitches accordingly.
    It may seem obvious that you should treat each potential client differently, however, this advice is often overlooked. Each prospect will have a different set of interests, needs, and personal affinities, and you should do as much homework as possible to put yourself in a position to address them as an individual. This is an area where maintaining deep relationships with your existing clients can help you succeed with referrals, as they will be in a position to connect you to new clients that know your offering and provide you with an introduction to the needs and interests of their friends and acquaintances.

In today’s market, it is important to go beyond a simple one size fits all strategy. HNW wealth managers must develop a comprehensive approach that emphasizes their differentiated value, grows their digital presence, engages them in community development, and targets narrowly tailored segments. All of these will help you take advantage of the opportunities and address the challenges of working with high net worth investors.

Wealth-X.

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