3 steps to catch and keep more mass affluent clients

By AdviceBridge

Rather than inherited wealth, mass affluent clients have accrued their wealth through hard work. They have risen from the middle class and are often well-paid professionals and small-business owners.

Mass affluent clients have between £100,000 and £500,000 investable assets, excluding property.

Research from LV= tells us that:

  • They are sensible with their finances, with a strong tendency to save.
  • 95% prefer low- or medium-risk investments.
  • 39% have children under 18, many needing to balance family support with saving for retirement.
  • 49% are older than 55 and are retired or nearing retirement.

The good news is that these consumers are open to taking help and advice from financial planners and advisers. Many know they need help with their retirement planning:

  • 60% of the mass affluent group have used a financial adviser in the past.
  • 70% would seek advice in the future.
  • 70% have good general financial knowledge.

So, what can you do to attract and retain more of this type of client? Here are three suggestions for how you can catch – and keep – mass affluent or high net worth clients.

1. Sub-segment according to specific needs

There are several variables that drive the behaviour of mass affluent consumers. Their wealth, age, or life stage dictate their financial requirements and lifestyle desires.

Broad offerings may not meet these differing demands. Sub-segmenting according to needs and wants may be more suitable and can give you a unique understanding of some of the specific needs of customers and help you develop a more defined value proposition.

Using well-defined client personas to help you identify client needs and wants can help you determine how different customers make financial decisions and give you a clearer understanding of their motivations.

Knowing more about your customer can help you better align your value proposition to their needs and values, and ensure you’re delivering your service in a way they are most likely to engage with.

2. Keep clients engaged

Clearly defined value propositions, along with targeted products and services, will help you keep the clients you win. Make your value proposition strong enough that they won’t be tempted to shop around for other solutions on offer.

Keep in regular contact. Even when clients have no immediate need for your services, it’s essential to keep in touch on a regular basis.

Remind them of your expertise by sending clients and prospective clients news and information in easy to read, timely chunks. Consider compiling a monthly, or bi-monthly, newsletter covering what’s been going on with your planning or advice firm, as well as what is going on in the world of finance, which will resonate with your clients.

Even a simple light-hearted list of things to watch or read can be enough to trigger interest and create a connection.

This small act will serve your entire client base and keep you and your firm in their mind, ready for the next time they need help or advice.

3. Differentiate your delivery

Once you’ve attracted and retained your mass affluent clients, you need to ensure you can make a profit from the business they bring. Develop differentiated, cost-appropriate models by identifying and using the right technology.

Younger mass affluent clients will place value on saving for retirement. As this segment is already heavily reliant on technology, having technology through which they can engage with you, their financial plan and their investments is key and this will help to sell the service you’re offering.

Tools that help your clients understand their finances better will benefit them by demonstrating how far their money will go. Such illustrative tools will aid you when engaging new clients as you help them plan and save to meet their retirement goals.

By showing people what they need to consider, you can help them make the most of their savings.

Personalise technology and improve efficiency with AdviceBridge

The financial planning platform from AdviceBridge enables you to work more efficiently and extend your services to more clients.

Whether you want to spend valuable time with your clients, make your business more cost-efficient, or automate your advice journey, the platform is a great way of maximising profits.

Get in touch

If you want to find out how AdviceBridge can help you grow your business, please get in touch. Email hello@advicebridge.com or call us on 020 3925 3850.