Customer acquisition and retention in European wealth management 2008

Content

• Overview
• Catalyst
• Summary
• Methodology
• Executive Summary
  • Wealth managers who deliver exceptional service and investment performance will win the battle for Europe's mass affluent and high net worth markets
  • Customer acquisition is driving growth in the wealth market
  • Acquisition strategies should encourage clients and intermediaries to spread the word about service, image and client relationship management
  • Regular client contact and solid investment returns will help to demonstrate that a wealth manager understands the client's needs and has the capacity to meet them
• Market Context
  • Customer acquisition is driving growth in the wealth market
  • Wealth managers are acutely aware of the need to grow their client bases
  • Wealth managers are less concerned about client retention
  • Just below 70% of wealth managers reported client relationships of at least five years' duration
  • Despite long-term relationships, wealth managers should pay attention to an increasing tendency to defect
  • Planned strategic initiatives will impact acquisition and retention rates
• Customer Acquisition
  • Acquisition strategies should encourage clients and intermediaries to spread the word about service, image and client relationship management
  • Clients select wealth managers based on the quality of their service
  • Word-of-mouth gets the word around on service levels
  • Intermediaries are less important to wealth managers in the Nordic and Benelux regions
  • In a climate of economic instability, the value of branding and reputation cannot be discounted
  • Wealth managers plan to focus their acquisition efforts on executives, business owners, inheritors and professionals
• Customer Retention
  • Regular client contact and solid investment returns will help to demonstrate that a wealth manager understands the client's needs and has the capacity to meet them
  • Exclusivity remains elusive in the wealth market
  • Above all, clients need to feel that their needs are understood
  • Wealth managers should harness client demand for increased contact to strengthen their relationships
  • Clients demand investment returns that satisfy their financial needs and goals
  • Wealth managers may need to re-prioritise their strategies for client retention
  • Clients are reluctant to entrust a significant proportion of their assets to a single manager
  • Client retention increases scope for gaining share of wallet
• Appendix
  • Data
  • Methodology
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
• List of Tables
  • Table 1: What will most determine revenue growth in your market in the next two years?
  • Table 2: What are the most pressing concerns for your business at present?
  • Table 3: What are the most pressing concerns for your business at present? 2006 and 2007 results
  • Table 4: How long has your client base, on average, been with you?
  • Table 5: To what extent do you agree with the following? Clients are more likely to change their manager today than 2 years ago
  • Table 6: What strategic initiatives are you planning or implementing in the next year?
  • Table 7: In your experience, what are the key influences that determine a client's choice of wealth management service?
  • Table 8: In your experience, what are the most effective customer acquisition techniques in your market?
  • Table 9: To what extent do you agree with the following? Financial advisors are / will be an important distribution channel for my wealth management business today / in three years
  • Table 10: Which client types will offer the greatest potential in your country in the next five years?
  • Table 11: Which statement on client relationships do you most agree with?
  • Table 12: In your experience, what are the most likely reasons for clients to leave a wealth management service?
  • Table 13: To what extent do you agree with the following? Clients are demanding more face to face contact with their wealth manager now than two years ago
  • Table 14: To what extent do you agree with the following? Clients are demanding more general contact (i.e. phone, email etc) with their wealth manager now than two years ago
  • Table 15: What are your clients most interested in today?
  • Table 16: What is the best way to retain clients?
  • Table 17: Approximately what share of your clients' wallet do you think you have, on average?
  • Table 18: What is the most effective means of increasing share of wallet?
• List of Figures
  • Figure 1: What will most determine revenue growth in your market in the next two years?
  • Figure 2: What are the most pressing concerns for your business at present?
  • Figure 3: What are the most pressing concerns for your business at present? 2006 and 2007 results
  • Figure 4: How long has your client base, on average, been with you?
  • Figure 5: To what extent do you agree with the following? Clients are more likely to change their manager today than 2 years ago
  • Figure 6: What strategic initiatives are you planning or implementing in the next year?
  • Figure 7: In your experience, what are the key influences that determine a client's choice of wealth management service?
  • Figure 8: In your experience, what are the most effective customer acquisition techniques in your market?
  • Figure 9: To what extent do you agree with the following? Financial advisors are / will be an important distribution channel for my wealth management business today / in three years
  • Figure 10: Which client types will offer the greatest potential in your country in the next five years?
  • Figure 11: Which statement on client relationships do you most agree with?
  • Figure 12: In your experience, what are the most likely reasons for clients to leave a wealth management service?
  • Figure 13: To what extent do you agree with the following statements on client contact?
  • Figure 14: What are your clients most interested in today?
  • Figure 15: What is the best way to retain clients?
  • Figure 16: Approximately what share of your clients' wallet do you think you have, on average?
  • Figure 17: What is the most effective means of increasing share of wallet?