Over the past five, and arguably the last ten years, many wealth management firms have moved their focus down one strata from the high net-worth (HNW) to the mass-affluent. Roughly, the former are those with over $1MM in investable assets and the latter are defined as having over $100K up to that magical $1MM. Either group is highly significant in total investable assets. But, the mass-affluent have about 10 times the number of participants. Where the high net-worth are largely serviced in a personal way, supported with tools, this model just can’t be preserved in the next strata due to cost.
To garner those mass-affluent assets, wealth management firms need to hold on to many of the tenants of their high-touch, high-cost advisory based approaches. But they need to be delivered in a way that makes economic sense. Successful firms are evaluating the components of their customer experience model serving the HNW. These components can be decomposed into attributes that include descriptors such as how they feel, frequency, value and others. These attributes can be translated into lower cost-to-service components. With the help of customer profiling, persona development and maintaining preference type data with usage information, firms are personalizing the treatments and tools so they feel special, almost personal.
By understanding the successful service components for the HNW, firms are finding more cost effective ways to optimize the client experience for the mass-affluent.