How to Market Your RIA to High-Net-Worth Clients

The percentage of high-net-worth (HNW) clients in the Registered Investment Advisors industry has risen steadily over the last few years, accounting for almost 15 percent of the market. Naturally, the goal of any growing RIA would be to acquire and retain a part of this market. The journey begins with marketing. This article contains tips and strategies for maximizing your access to HNW clients.

HNW Clients—What Are They?

A HNW client is generally considered someone with at least $1 million in liquid assets, excluding the person’s primary residence and less liquid assets such as artwork and intellectual property.

How to Attract High-Net-Worth Clients

HNW clients often have different goals and perspectives than other RIA clients. Their use of an advisor firm will likely have more unique parameters than other investors. Therefore, they will seek a firm that “gets” their financial needs.

Attracting HNW Clients

Methods for RIAs marketing to HNW clients vary, and a combination of all such methods will likely need to be used to get their attention.

• Referrals from existing clients and their families
• Marketing exclusive solutions and services targeting HNW individuals
• Optimizing networking opportunities

HNW Solutions

Because they have substantial assets, growing their portfolio, while necessary, may not be their primary focus. Marketing that focuses on increasing wealth may not in itself attract them. Rather, their priorities may include:

• Wealth management
• Tax optimization
• Estate planning
• Charity and philanthropy

Marketing should therefore convey responsible advisory services and long-term goals. Offers, incentives, and discounts will likely not be as important as the confidence of knowing your firm will take care of its long-term finances and legacy.

HNW Interests

HNW clients will definitely be interested in your firm’s values and commitment. Additionally, they will be interested in what services your firm can offer exclusively to clients in their financial circumstances. Therefore, your team needs to be able to offer next-level services, a sort of “white-glove treatment,” to HNW clients. Among such services, HNW clients may expect some non-financial engagement centering around their hobbies, philanthropic interests, and social activities. The benefit of participating in these nonfinancial engagements may include meeting other HNW individuals who may be future clients.

How to Manage High-Net-Worth Clients

However, methods for RIAs managing HNW clients are based on similar values and principles to managing any client, with additional investment. The reality is that your firm’s investment in the client should reflect the client’s investment in your firm. The greater their net worth, the more engaged your team should be. Retention of an HNW client will be based primarily on the level of service offered and whether they feel their wealth is in good hands. Top strategies for HNW clients include the following.

Offer Solutions With Value

Since HNW clients require unique solutions, train your team to offer some of the following professional services:

• White glove services. Go beyond what is typically offered by your competitors and even beyond what your firm may offer to clients with less net worth. Examples may include exclusive access to high-level events, personalized support and concierge services, and client community and networking opportunities.
• Comprehensive financial solutions. HNW clients often want more from an advisory firm than investment management. Tax strategies, estate planning, charity guidance and management, and other more complex long-term financial offerings are critical.
• Informative reporting. Provide HNW clients with periodic performance reports, risk reports, and other indicators for their financial planning. This serves to solidify trust and maintain a transparent, open relationship. Leverage software to help you provide real-time analytics to your HNW clients if it’s merited.

Create Strong Relationships

Creating strong relationships between your team and your HNW clients takes time and effort. The more trust and peace of mind you create, the more likely you will retain HNW clients and attract new ones. Allow clients to offer feedback to your team. Keep your whole team involved so your client feels confident about having a team on their side. Be proactive about communicating with the client and their family so that they stay engaged and know they can depend on you.

Invest in Your HNW Client

Investment in your HNW client can take many forms. For example, include them in your family or community by planning social or charitable events. Vary formal meetings with informal meetings that center around their hobbies and interests, such as golf, fishing, or philanthropy. Train your team to meet the challenges if you see a way to engage your client more personally.

Provide Niche Services

Recognize that HNW clients have unique needs and be flexible and responsive to their requirements. Be willing to go the extra mile to offer personalized services. Do they need help with property management, travel, or lifestyle changes? Are there ways your firm can facilitate their unique needs? Are there financial services no other firm offers to niche sectors of the HNW market?

Securing Your RIA With NAPA Premier

Building the level of trust and confidence required by high-net-worth clients includes protecting assets, both theirs and yours. One way to do this is by purchasing Errors and Omissions Insurance from NAPA Premier. This solution is affordable and cost effective. Call or go online today to get a quote or professional consultation.