Best Practices - How US Banking Organizations Market Financial Products to High Net Worth Female Clients
Our research findings have uncovered six best practices that can be used by financial organizations and personnel, including banking organizations, to market financial products to high net worth female clients:
- Connect and communicate with HNW women on social media.
- Provide them with in-depth details regarding financial products and investment pitches.
- Locate and connect with HNW women via networking events and opportunities.
- Provide up-front product information and services that are designed to solve the complex financial problems of this demographic.
- Locate and connect with HNW women through a referral pipeline by networking with CPA's and financial attorneys who already have this demographic as clients.
- Give special attention and cater to the life changes and stages that HNW women experience.
Below, you will find a deep dive of our findings.
In order to fulfill this request, we searched extensively through industry reports, analyst reports, and insights from trusted media sites to locate any existing insights that directly outline how U.S. banking organizations market financial products to high net worth female clients. However, this research did not yield any specific enough results.
Therefore, we next conducted research on investment trends pertaining to high net worth females. This research included gaining an understanding of how this demographic discovers financial products, marketing methods utilized by investment managers, and factors that serve as motivators for women to seek out financial products. Using these insights, we triangulated a list of best practices that we assume banking organizations/personnel likely utilize and focus on when marketing financial products to high net worth female clients.
Below, you will find a list of the best practices we have identified. Information on how this demographic learns about financial products and how financial officers can intersect with them has been woven throughout these best practices. For this research, we have provided general best practices which we could logically assume are applicable to the U.S. demographic specifically.
Please note that according to the Global Banking Alliance for Women, high net worth women "want the same from the bank as all women -- inputs that increase their confidence," including "more and better information, education, and networking." Based on this insight, some of the best practices we have presented may be more geared towards women clients in general. However, we have selected those that we assume would be particularly applicable to the high-net-worth demographic, based on the aforementioned insight from the GBA for Women.
SOCIAL MEDIA MARKETING
Social media is a useful marketing tool to use in order to reach high net worth women. According to Spectrem Group, "high net worth women are more likely than high net worth men to use social media for financial purposes," and are also "twice as likely as men to rely on social media to communicate with others than the telephone."
EY recommends using digital communications to complement human interactions.
DETAILED INVESTMENT PITCHES
EY states that financial professionals looking to impress female clientele should provide "clear, substantive information and advice." Insights from Spectrem Group state that women in this demographic are expecting in-depth insights regarding the benefits of their financial investments.
According to Spectrem Group, millionaire women and ultra-high net worth women are focused on the following details when considering a financial investment/service:
- 76% of UHNW women and 83% female millionaires say that they consider a company's reputation before making an investment.
- 82% of female millionaires, 81% of mass affluent women, and 78% of UHNW women "consider the past track record of their investment choices."
- 46% of women say they are interested in socially responsible investments, with 34% of UHNW women and 45% of female millionaires say the same.
- Overall, women are very likely to consider how their financial choices/investments will impact their taxes.
According to the Global Banking Alliance for Women, high net worth women enjoy being presented with opportunities to network with other high net worth women. This gives them the ability to exchange information and expand their social circles further into the high net worth arena.
Investopedia also recommends relying on networking as a way to connect with the high net worth demographic, but to also do so in a way that targets a specific niche demographic; this could be specific high-income professions, or a specific geographic region. To accomplish this most successfully, Investopedia further suggests connecting with professional associations within these niches. Financial personnel can also network via hobbies typically enjoyed by the high net worth demographic (e.g. boating, golfing, etc).
SOLVE THEIR PROBLEMS
Investopedia says that marketing successfully to the high net worth demographic requires the financial institution to offer products and services that solve their problems and cater to their needs.
The high net worth demographic typically has "more complex financial situations than average income earners." Typically, they require asset management services and want to reduce their tax liabilities. According to the Global Banking Alliance for Women, a some key financial concerns of high net worth women are estate and family succession planning. Investopedia says financial organizations looking to market to the affluent demographic should "add specific services to [their] financial planing menu that speak directly to solving these complex issues."
GENERATE A REFERRAL PIPELINE
In addition to networking at the client level, Investopedia says that successful financial product marketing to the high net worth demographic can be achieved by networking with "local estate planning attorneys and CPAs who cater their practices to wealthy individuals," as these individuals often serve as a link between their clients and available services.
PAY ATTENTION TO LIFE CHANGES
According to EY, financial professionals looking to build strong relationships/business connections with female clients should develop a solid understanding of their priorities and goals, take time to understand their lifestyle (including culture and religion), and maintain a sufficient "human-machine balance in core advice models."
In accordance with this, EY also recommends that financial organizations encourage advisers to serve as financial coaches, both for the clients and their families. The Global Banking Alliance for Women states that a woman being close with her financial adviser is a sign that she values them.
A woman's financial needs will change as her life changes. According to Wilmington Trust, marriage, divorce, new babies, death of a family member, reaching retirement, and changes in business ownership/career "can all have an impact on a women's needs for growth and income." Therefore, we assume these different life stages and the financial needs at arise from them are areas where a banking organization should focus their marketing efforts.
In closing, we have provided an overview of the best practices that financial institutions and personnel, such as banking organizations, use to market financial products to high net worth female clients. We have provided a total of six best practices, which collectively provide information on how high net worth women learn about financial products and where financial officers can intersect with them.