Customer acquisition and retention in European wealth management 2008

Published by: Datamonitor

Published: Feb. 14, 2008 - 40 Pages

Table of Contents

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?

Abstract

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