What Do Wealthy Clients Really Want? Hint, It’s Not What You Think
So you want to advise wealthy clients. What advisor doesn’t? The good news is more than a third of affluent clients do not have a financial advisor. Sounds appealing, right? Well, the needs of the affluent can be complex, so if you intend to target this audience here are a few things that you need to know:
What high net worth clients value
Recent studies show, contrary to popular thought, retirement is not the top priority for the affluent. Their approach to investing and building wealth is shaped primarily by their priorities and outlook. Priorities include a life well lived, health, family and financial security. Simply put, what makes their life more fulfilling is not necessarily money – it’s what they do with their money.
The top concerns of the wealthy
Their concerns are twofold. First and foremost, they don’t want to lose their wealth. Second, they want to leave a legacy to the next generation.
Expectations are higher
The wealthy have higher service expectations, largely due to the exceptional customer service they receive in their personal lives. The benchmarks against which high net worth individuals measure customer service are more extraordinary, thus making the challenge of providing exceptional service that much harder.
Be an expert at what you do
The wealthy don’t want to waste money on inexperience. They expect their advisors to speak to a large range of financial topics. Generally speaking, high net worth clients have legal and tax issues other clients don't. You don’t need to be an expert, you just need direct access to qualified professionals, such as lawyers and accountants, who will step in when needed.
Affluent clients need a full-service platform, one that includes goals-based financial planning; wealth management; and services that address investments, lending, tax and estate planning, insurance, philanthropy and succession planning. Simply put, the wealthy have complex financial needs that require hands-on managing and planning, so their advisors need to offer service options and products that simplify their lives.
You are the product
Because this demographic has seen every sales strategy you’re ever going to try, you need to take an outside-of-the-box and solution-oriented approach with them. They’re looking for guidance, not a product.
Be willing to do the work
It’s a great time to be an advisor who serves high net worth clients, but before you get started, know that advising high net worth clients is challenging. If you want to go after the big fish, you need to be prepared and willing to do the work.