We’ve noticed there’s an increasing demand for marketing strategies that effectively reach high net worth individuals (HNWI). Globally there’s around 33 million people who are classed as a HNWI – but this is only going to grow exponentially.
Global HNWI wealth is forecasted to almost triple in size from 2006-2025 to surpass US$100 trillion by 2025, mainly driven by strong Asia-Pacific growth. This is a huge market to tap into, but it’s not easy. Secret, lucrative, elusive; many HNWIs are cautious about revealing their true wealth, providing a hard task for marketers who want these people as customers.
Whilst we don’t claim to be experts in this field by any means, we do have experience in creating tailored content and marketing collateral that seeks to attract and convert HNWIs. The following considerations should help you when deploying your marketing strategy to catch the eyes of the elite.
It probably comes as no surprise that competitive or vanity-driven activities are the preferred pastimes for the super rich. Let’s look at golf for example. The expense of the clubs, the chauffeur driven buggy, exclusive membership to a golf club; it enables them to distinguish themselves from the rest of the world, aka, us. Tennis is another preferred sport of HNWIs as it requires skill and a competitive streak, but it’s more exclusive to the rich market as lessons and training are expensive. Basically, their hobbies will either showcase their superiority or enrich their fabulous lifestyle.
For marketers this means developing products or services that aren’t accessible to the mainstream Joe Bloggs. Your offering should echo the purposes of their interests in that it will feed their ego or enable them to enjoy the good life. If your target persona is a keen golfer, your content marketing or social media strategy should play up to this to invoke an emotional connection with your brand and prove that you know what makes them tick.
Attitude to Money
Yes, they’re big spenders, but more importantly they are clever spenders, using their financial acumen to make justified purchasing decisions. Despite their substantial wealth, they aren’t going to wistfully take unnecessary risks with their money and overspend, hence why endeavours that surround wealth accumulation (stocks and shares) are far more appealing than activities that put their money at risk (gambling). However, they still offer rich potential for marketers to drive big revenue numbers; you just have to add value.
What we mean by this is that HNWIs expect the privilege and exclusivity to go beyond just the goods or service. They want a commercial relationship that will continue to give them value, perks and rewards in the long run, such as a members club, VIP status or a ‘gold card’ initiative.
Like a lot of things, the journey is sometimes more crucial than the destination, and it couldn’t be more true for HNWIs who relish in an experience. From your first point of contact to the final transaction, HNWIs want their prestigious status and intellectual prowess recognised and respected. For example, fine wine is a typical investment for a HNWI, but they establish themselves as a wine connoisseur instead of a mere hobbyist. For those who sell vintage wines to this market ensure that the customer service experience is supported with education, exclusive product insight and interaction, that relates back to the ‘adding value’ we were discussing earlier. Whilst they expect a white glove service, they also want to be involved in the process. We suggest that brands who want to do business with a HNWI establish yourselves as a liaison, consultant or concierge that implies you care more about the relationship than just the sale.
From acquisition to retention, your strategies should reinforce the notion that your product or service is unattainable to the average person and that the experience will add financial value in the long term. It’s a tricky job, especially as they are surrounded by influencers who might research or purchase on their behalf (it’s a busy old life, the good one), so it’s vital that you utilise the right channels and adopt the right messaging.
If you’re serious about marketing to high net-worth individuals, you need a team of experts to create a sequence of highly targeted email workflows and ads that will educate your prospects and make them aware of who you are.