The benefits of working with high-net-worth investors (HNIs) are obvious: more available assets across fewer accounts frees up time to seek higher revenue opportunities for your firm. But with these benefits come a unique set of needs - attracting, serving and retaining HNI clients.
Many HNIs are extremely confident in their ability to handle money and make smart investment decisions. They also don’t waste time. Hence, strengthening relationship becomes extremely crucial for your wealth management or advisory firm to grow business.
Here are six relationship skills that Orion Portfolio Solutions, a US based business solutions provider of financial advisors has listed in a white paper to help you impress HNI investors:
Make a good first impression
Because HNI investors are so highly sought after, you literally only get one chance to make a good first impression. Simply put, there’s no real incentive for them to give you a second look.
The white paper suggests that many HNIs will likely to visit your website, so give potential clients a reason to stick around. Among the basic requirements for interactive website are clean and modern design, intuitive interface and smooth functionality. Invest in your site’s user experience.
Emphasize communication
The ability to interact in person and through automated channels influences many HNI investors’ decisions to increase or decrease assets with you. HNI investors more than value good communication, they demand it.
One effective way is to stay in touch through a user-friendly mobile application and automated communication offerings like event-based notifications, which help increase client engagement by sending emails or text messages based on pre-determined triggers, such as account activity, trade notifications and personal milestones like birthdays or anniversaries.
Build trust
Keeping clients consistently informed about their financial health goes a long way toward building trust, but it’s not enough on its own, especially when it comes to HNI investors. Tackle that initial mistrust head on by being clear and up front about your values, investment philosophy and services. And don’t shy away from talking explicitly about finances. They’ll appreciate being aware of your fees and billing structure ahead of time.
Be social
Social media can be a dynamic tool for finding, engaging and retaining HNI investors. According to Pew Research, 64% of U.S. adults aged 50-64 years old were active on at least one social media platform. You can use social media to promote brand awareness while the platforms themselves offer unique opportunities to facilitate discussions and foster connections.
Give up control
You may be used to clients with no knowledge of the financial industry, who rely on you completely for advice and decision-making. However, many HNI investors have a higher level of confidence in their financial knowledge and ability to make investment decisions.
HNI investors value being part of the decisions you’re making with their money. They’re educated, self-assured and heavily invested in their financial outcomes. So include them in your process: the transparency and feeling of control will help make them feel comfortable working with you.
Be multi-dimensional
The unique needs of HNI investors can’t be met with one central solution — they require a wide range of services. Align your service model to include the services they value most like tax and legal advice, estate and trust management and impact investing or philanthropic.
