Marketing to High Net Worth Individuals

Who are high net worth individuals?

High net worth individuals are working professionals or business executives or individual households having money worth greater than or equal to $100000. Their assets should be in the form of liquid assets. It is simply cash on hand or any other thing that is equivalent to cash. For instance, the conversion of any asset of an individual within a short period is known as a liquid asset. USA is the one of the leading countries having more high net worth individuals. The USA has 24.5 million HNWI, they contribute nearly 40% of HNWI in the world.

How high net worth individuals are classified?

Understanding high net worth individuals’ classification is the prominent process for marketing your products or services. Knowing your targeted audience’s net worth or which categorization they comes under makes the right business deal. The high net worth of an individual is divided into the following categories.

1. Sub high net worth individuals
2. High net worth individuals
3. Very high net worth individuals
4. Ultra high net worth individuals

1. Sub high net worth individuals

A person who has money worth between $1Lakh to $1million is a sub high net worth individual.

2. High net worth individuals

A person who has money worth between $1million to $5million is a high net worth individual.

3. Very high net worth individuals

A person who has money worth between $5million to $30million is a high net worth individual.

4. Ultra high net worth individuals

A person who has money worth at least $ 30 million is a high net worth individual

Steps Involved in Marketing to high net worth individuals

High net worth individuals prefer premium and exclusive products or services. Marketing to high-net-worth individuals involves well-organized plans and proper execution. The crucial process is discussed below.

1. Background research of high net worth individuals

Background research of high net worth individuals is the first prime action for marketers. The research includes:

• Their Profession or Business
• Their Average Annual Income and spending.
• Personal interest and hobbies
• Their investment and savings
• Their luxury lifestyle
• Their social activities
• Business market scale
• Their business strategies
• Their business meetings

Analyzing this background research report, a marketer can understand the pain points and their field of interest.

2. Know the efficient needs of high net worth individuals.

The requirements and interests of high net worth audiences are different from those of normal people. The most common requirements of them are listed below.

a) Well experienced Charted Accountant for Financial Advice

HNWI has complex financial situations as they deal with millions. They need well-structured profitable financial advice for their wealth to benefit from the tax. To protect and manage their assets they seek a well-experienced wealth management charted accountant or a legal advisor.

b) Planning and legal advice from the Senior Attorney

To overcome newly implemented government policies and acts regarding tax and assets, crucial legal advice and futuristic planning are required. A thorough knowledge of tax laws and acting according to the present and futuristic movement of government norms is essential for HNWI. A senior attorney or a legal advisor are experts in that, they can provide legal solutions and planning strategies.

c) Trendy and advanced professional needs

Today’s tech-savvy has taken prominent positions in the business world.  HNWI needs professionals who know trending technical tools and advancement. Processing all business entities in one place with advanced analytics provides the day-to-day update and progress of their businesses is a crucial thing that HNWI requires.

d) High-net-worth person’s interest in a luxury lifestyle

HNW individuals steer the luxury world. Their interest and demands are entirely huge and set a new trend in the world. The traditional luxury expectations of HNWI have now changed.

• They expect exclusive and ultra-premium services in the things they approach.
• They customize their needs and demand the product or services from the market.
• The significant needs for their physical and mental health are entirely exclusive and demand the best of the best.
• Their travel utilities, private parties, personal meetings, and family gatherings are always highly personalized by themselves.

3. Pick out the social media in which the high net worth persons are hyperactive.

Observing the activities of high net worth individuals on social media aids the keen actions of the targeted audience. A recent survey ranked the social media platforms that are prominently used by high-net-worth individuals.

They are:

• 47% of HNWI use LinkedIn.
• 42% of HNWI use YouTube.
• 30% of HNWI use Facebook.

Approaching the targeted audience on this platform takes the marketers close to them.

4. Effective email marketing campaign for high net worth individuals

A well-drafted email marketing is an eminent step to capture the desired audience. Every frame of an email needs to be equipped with eye-catching and informative content for the targeted audience. Having a customized collection of high net worth individuals email lists enables you to reach out to them with relevant content.

a) The role of the subject

The subject line of an email is the decider of opening any mail. Nearly 64% of recipients open their email by considering the subject line. The opening click rates are very important and allow the targeted audience to read your email.

So, the subject line is a very crucial thing that should be framed by marketers. The word of it is between 6 to 10 is recommended and that is entirely about the main theme of the email.

b) The hook

• A hook is nothing but a line or phrase of a sentence that triggers the readers to take immediate action.
• An effective hook in an email converts your targeted audience to your customer.
• The hook of an email should be highly innovative while dealing with high-net-worth individuals.

c) Highlighting your product or service

• The body of the mail should not be only in long text format, it lowers the interest of the reader.
• The content of the mail describes your product or service to the recipient in a well-personalized manner.
• Many email campaign templates serve well-drafted business mail that captures high net worth individuals’ eyes on your business.
• The response or decision-making of your email is based on how innovative, informative and productive content you are given in the email.

d) Contact details

• Providing responsive contact details is very crucial in marketing.
• At the bottom of your email, the entire contact details of your business should be placed.
• If your email campaign works in the right way or HNWI has a thought to avail your service or product.
• The responsive contact allows them to contact you. mailing addresses, phone numbers, email addresses and all your social media IDs to reach out to you.

e) Consistent effort

• As we know every individual who may be a working professional, or a non-working person is busy in this tech world.
• Reaching high net worth individuals for your business is highly competitive, a unique and well-formulated marketing approach enhances their decision towards your product or services.
• Having seconds with high net worth individuals is in high demand, within that moment you have to make a positive response from them.
• While dealing with HNWI, factually it takes a longer time compared with ordinary business professionals.
• So well-customized and consistent marketing efforts are a crucial requirement if high net worth individuals are your customers.

The process involved in engaging high net worth individuals.

All required information and contents are available online for everyone in the world. Being unique and engaging high net worth individuals in this highly competitive environment is quite difficult but it can be achieved by outstanding strategies.

Showing your presence on all social media platforms with effective relevant content to your targeted audience is the initial step. The approach and response from the marketer side should be genuine and polite, it enhances the audience to build connection with your business. Immediate response to the query and strong customer relationship management (CRM) gain customer hope and satisfaction.

Promote your newly launched product or service, offers you provide with efficient features, your success rate, and customer satisfaction feedback in all social media platforms. In addition to that some effective tips are listed down:

• Create and produce valuable content.
• Add customized images, audio, and videos to your content.
• Use a well-personalized template for content creation.
• Conduct innovative email marketing campaigns with informative and interesting content relevant to HNWI.
• Maximize social media presence.

How do we build connections with high net worth individuals?

Before executing any marketing technique, get the customized high net worth email list based on your preference. Plan marketing strategies according to the requirements or interests of your audience. Some of the noteworthy criteria that high-net-worth individuals focus on are as follows.

• High net worth individuals deeply trust the authenticity of any business. Before investing any amount of money, one should go for the authentic and genuine background of the business.

• High net worth individuals are not exceptional in this case, they deeply verify your authentication. So that record your previous business success rate, make your business verified from legal systems, follow government norms and guidelines and get authenticated or valid approval for your product or service from the respective legal authority.

• Next to this, HNWI goes for your management and leadership skills. The investment from HNWI deals with millions, so they ensure your leadership and management skills.

• Share your previous work experience, speech at a big event, business writings and your success rate with big business deals.

• Proven success rate and genuine feedback of your product or services from your previous customers enhance HNWI to build connections with your offerings.

• It is not 100% guaranteed to get a positive response from HNWI even if you followed outstanding formulas. Dealing with HNWI takes time as the worth of the business. A genuine and consistent approach is very crucial for business to happen.

• Utilize advanced technical support for customer relationship management (CRM).

• Even how technology develops day by day still referral marketing works with high net worth individuals. They consider business referrals from their peer business profession or from the family circle.

Top high net worth professionals

SL.NO	NAME	NET WORTH	COUNTRY	BUSINESS
1	Bernard Arnault & family	$211 billion	France LVMH	LVMH
2	Elon Musk	$180 billion	United States/ South Africa	Tesla, SpaceX
3	Jeff Bezos	$114 billion	United States	Amazon
4	Larry Ellison	$107 billion	United States	Oracle Corporation
5	Warren Buffett	$106 billion	United States	Berkshire Hathaway
6	Bill Gates	$104 billion	United States	Microsoft
7	Michael Bloomberg	$94.5 billion	United States	Bloomberg L.P
8	Carlos Slim & family	$93 billion	Mexico	Telmex, América Móvil, Grupo Carso
9	Mukesh Ambani	$83.4 billion	India	Reliance Industries
10	Steve Ballmer	$80.7 billion	United States	Microsoft

Conclusion

Marketing is not simply showcasing or promoting your service or products. Effective marketing requires specific key skills and strategies. While dealing with high net worth individuals, pre-planned and well formulated executions are highly required. Understanding the required key skills to market with HNWI is an essential prior action. Be aware of the steps involved in marketing with HNWI and the categorization of them enhances you to frame the relevant approach. The comprehensive steps discussed above for marketing to high-net-worth individuals assist you for effective marketing outcomes.