Study: Financial Scare Tactics Don't Work on Wealthy

Share this article:
In response to the volatile economy, many financial services institutions are changing their marketing campaigns to include alarmist messages about the future of the economy, thinking this will help them attract and retain clients.


But according to a study released yesterday by Forrester Research Inc., this type of marketing does not have any effect on the affluent -- those consumers with investable assets of at least $1 million. The firm suggests that companies wanting to attract and attain wealthy clients should breed loyalty and promote a cohesive, relevant brand experience.


Forrester Research said it recently surveyed 2,500 North American affluent households on the state of the economy, the market and technology. It found the millionaires to be confident about the economy and secure in their wealth.


"The bottom line is that retaining customers costs less than acquisition and loyal customers buy more frequently and spend more," said Ekaterina Walsh, a senior analyst at Forrester Research. "Loyal customers are a firm's best acquisition vehicle. One of the top three ways affluent investors learned about their most recently chosen financial provider was through some sort of referral."


Walsh said that to increase loyalty, companies must better understand their customers and their expectations. Customers do not separate their perception of a firm into individual interactions, but lump all their experiences and expectations into an overall impression of the financial institution.


"Affluent clients whose primary financial providers successfully integrate two or more desired services are 25 percent more likely to recommend the firm and 24 percent less likely to leave," Walsh said.


Financial firms should focus on the unique benefits of their services and integrate their delivery based on their target market's expectations.


Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Data/Analytics

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Data/Analytics

MeritDirect Opens San Jose Office

MeritDirect Opens San Jose Office

A force in direct mail, the company looks to expand its digital data services with a footprint in Silicon Valley.

Neustar Decides to Hand Data Over to its Clients

Neustar Decides to Hand Data Over to its ...

AK Media Insights Pro turns data over to marketers to create business-specific aggregations, integrate offline efforts, and probe deeper into their sales funnels.

Arthur Hughes, Who Wrote the Book on Database Marketing, Dies at 86

Arthur Hughes, Who Wrote the Book on Database ...

First published in the early days of the Web, Arthur Middleton Hughes's Strategic Database Marketing remains a bible for direct marketers.