In wealth management, there are important parallel trends that are redirecting the course of marketing, distribution and branding:
• Market segmentation is becoming increasingly precise
• Product/service sets, as well as the overall “client experience” are being redefined to align with segment needs – and traditional manufacturing and distribution approaches are changing in the process
• Branding and sub-branding are being used to support segmentation advances and to mesh with a new social media driven dynamic in brand awareness and brand building
These trends are being influenced by two primary forces: the need of wealth management providers to differentiate themselves in an overcrowded marketplace and demand among the wealthy for improved products and a more rewarding client experience.
Enabling these trends are advances in technology. The capacity to collect and analyze customer data has grown exponentially in recent years. So called “Big Data” initiatives have been started at most large financial service organizations and many are beginning to mine this data for insights into refined client segmentation strategies. At the same time, the widespread use of communications technologies, particularly mobile electronic devices, has enhanced the ability of marketers to deliver targeted messages to very specific segments. These technologies have also allowed marketers to monitor and measure response behavior, helping to build an engagement circle of increasingly more informed client modeling and improved messaging.
In the end these trends are expected to benefit wealth management clients looking for a more tailored experience and wealth providers trying to distinguish themselves by more effectively and efficiently meeting clients’ needs.