HNW Next Gen – Digital & Social Media Platforms for

Your Private Wealth Practice

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High Net Worth Client Engagement & Acquisition

For Wealth ManagementOctober 29-30 -- Toronto

A Day in the Life of April Rudin

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About The Rudin Group

• Integrated marketing, branding and communications strategies for the financial services industry.

• Helping UHNW / HNW community create client acquisition plans that take advantage of next generation digital platforms and communications.

Challenging “Business as Usual” Practices

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April Rudin

• Financial Services Industry Marketing Consultant

• Ultra-High-Net Worth / High-Net Worth Sector Specialist

• Digital and Social Media Engagement and Client Acquisition Expert

• Multi-Generational Communications and Media Relations Strategist

• Frequent contributor to national media outlets including The Huffington Post, BusinessWeek, Bloomberg, Reuters, Fundfire, Family Wealth Report and AssetTV

• High-Net Worth Advisory Board Chair for The Hedge Fund Association (HFA) and PAM Member of Advisory Board

CONSULTANT TO THE STARSOF THE FINANCIAL SERVICES INDUSTRY

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Our Agenda

• Why You Can’t Wait

• The Risks and Causes of Inaction

• Allocating Resources

• Best Practices in Social Media

• What’s Next?

Social Media Strategies For CFAs:

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Targeting & Messaging

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Most Financial Services Marketing Campaigns Are Targeted Specifically to “Boomers”

• 80 million baby-boomers in 2004 worth an estimated $59 trillion • Estimated $46 million by 2018 and continue to trend downward• Gen-X (estimated 45 million) and Gen-Y (estimated 60 million) worth $10

trillion in 2004 and their combined wealth is predicted to be at least $28 trillion in 2018

Get a “FaceLift”

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Don’t be invisible to Next Gen prospects:

Change the style, method and tone you use to present yourself and your firm online.

Baby boomers ask friends for referrals and then act on the advice. Gen-X/Gen-Y will ask for the same types of referrals from friends, but do their own research on the Internet as well!

Characteristics of the Young and Wealthy

Value transparency, community and mobile convenience

Trust friends more than their parentsEager to rate their advisors and others

Don’t trust the “suits”Ready to take advantage of affinity investment opportunities

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Findings on Gen D

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Source: “Accenture Wealth and Asset Management Services Market Research: Understanding the Generation D Investor and Advisor (Jan. 2013)”

75 MM people in the US belong to “Generation D”, a behaviorally defined group with higher income, assets, and education who:

–Are deeply “digital”, integrating online & social tech into their lives

–Are active investors

–Are striving to cultivate, maintain and pass along wealth

•Unsurprisingly, Gen D is somewhat distrustful of the financial community, banks, and advisors given the state of the economy and, most importantly, their inability to understand how the crash happened in the first place.

–Many have come to believe that Financial Advisors (FAs) are simply salespeople pushing the products that make their employers the most money, as opposed to the products that would most help their clients

More on Gen D

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•Nevertheless, they realize that investing is the “only game in town” – there is no other means to create, maintain and pass along wealth

•Gen D consists of Boomers, Gen Xers and Millennials. This provides a mechanism for projecting towards future need states of Gen D (Cohort Analysis), as a the differences in age groups are clues to both how cohorts are likely to change over time, and how population wants, needs and goals are likely to change as younger cohorts become more dominant

And They’re Ready to Take Control

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Baby-boomers(your clients) are transferring over $40 trillion to younger generations over next several decades

Wealth is being transferred to young people earlier than it was to previous generations. They are richer AND younger

A Sector in Denial

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Recently, I polled an audience of wealth managers and asked their opinion on whether next-gen wealth will abandon their parents’ advisors….

Over 90% said “No!”

All Evidence to the Contrary

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98% Of New Wealth Inheritors Change Advisors

According to:

Where’s The Failure???

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Boomers Talking to Boomers

Baby Boomers (ages 55 +) remain the largest group of wealth holders.

Established baby boomer wealth professionals are typically the ones with the biggest book of business

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Boomers Have Different Values

• They value trust, loyalty and long-standing relationships

• Represent 70 percent ($7 trillion) of total U.S. household net-worth

• Watch more TV than any other demographics

• Boomers value experience over product, need to know functional outcomes

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The Same, But Different…

• Boomers are apt to rely on personal referrals rather than perform actual research (conversation, email, or traditional print media)

• If friends “like” it they will, not inclined to seek outside opinions

• Boomers value experience over product, need to know functional outcomes

• Boomers lag in mobile 25% own smart phones or tablets in 2011

• Expected to grow to 39.8% in 2015

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Most “Baby Boomer” Iconography is Dated

♫ Go where you want ♪

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So Are Its Platforms

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So What’s the Hold Up?

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Are you a Flintstone or a Jetson?

Capture the Attention of “Generation D”

Help Me To Understand?

• Amplification of targeted messages/measurement and refine

• Brand Differentiation both firm/personal

• Enhanced Visibility/Name Recognition and Value Props

• Targeted Client acquisition and leveraging the “Money In Motion”

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How Allocations of Marketing Resources Have Changed

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Source: www.therudingroup.com

Today’s Fads Are Tomorrow’s Trash

• Keep pace with innovation

• Focus on how technology changes how people communicate

• Technology bridges generations emergence of “Gen D”

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The Social Media Imperative

Source: Copyright Spectrem Group 2013

UHNW = Net worth of between $5 million and $25 million

HNW = Net worth of between $1million and $5 million

Bl

og

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47% of UHNW56% of HNW

32% of UHNW31% of HNW

8% of UHNW8% of HNW

Regularly read blogs that pertain to financial topics19 % UHNW 16% HNW

How is Social Media Used?

Source: Spectrem Group 2013

Younger UHNW investors are more inclined to use social media as a communication tool and read their advisors’ blogs

• More than 25% of those under age 44 would follow an advisor on Twitter.

• More than 40% would read corporate blogs

• Over 30% rely more on social media for information than on traditional channels

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Generational Use of Social Networks

Source: Pew Research Center/American Life Project

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86% of 18-29 year-olds use social media

Over 70% of 30-49 year-olds use social media

50% of 50-64 year-olds use social media

What Platforms Are Musts?

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Platform Unique Factors Strategies and Best Practices

LinkedIn Business networking and relationship building, introductions

Structuring your profile and joining groups

Facebook Small Business/Personal branding/Consumer brands B to C, Business pages

Twitter Opportunistic, newswire, short burst in real-time Aggregating and curating content to attract

YouTube Most AuthenticTeach and LearnLook + Listen

In five years, all websites will be video

Google+ Feasting on SEO and Adword content Struggling to be all things

Blogging Thought-Leadership + POV, Complex ideas Content + opinion;Commenting and engaging with others

Primary Challenges to Social Media Marketing

• Industry / Organizational Inertia

• Available Resources

• Compliance Culture

• Reputational Risks

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Social Media Excuses are Actually Motivations

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“I don’t understand the benefits”

“We don’t have the resources”

“Our clients don’t use social media”

“We don’t have established policies and procedures in place”

“It exposes firm to undue reputational risk”

The Risks of Inaction

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Diminished or no brand visibility “Who were you again?”

Outmoded approaches to client acquisition

More Risks of Inaction

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Inadequate distribution of promotional and thought leadership materials:

Reduced market share – possibly all the way down to none

Business attrition:

Has the Ship Sailed?

Yes. Sort of. Many firms should pivot toward attracting new clients rather than focus on developing Next Gen relationships with existing ones.

Now is the ideal time to revamp your overall marketing to capture market share during a period of unprecedented generational wealth transfer.

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Strategic Client Acquisition

1. Look at your brand, its elements and your own firm’s differentiators

2. Determine your own unique differentiators = messaging

3. Target messages and activities by client type or persona

4. Design a social media strategy and detailed plan with accountability and timing

5. Execute the plan and monitor its progress. Make changes where necessary.

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Active Engagement vs. Passive Profiles

• Integrate with offerings and focus on firm activities

• Share successes via amplified social media platforms

• Lather…rinse…repeat.

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Creating a Referral Network For UHNW / HNW Client Acquisition

Non-profits

T&E Attorneys

Real Estate Attorneys

Matrimonial Attorneys

CPA Firms

WealthManaging

Firm

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Where it Can Go Wrong – HNW Social Media Miscues

• Abandoned attempts at social media

• No plan in messaging

– not niche-oriented

• Inconsistent posting or blogging

• Too much original content and

not enough curated material

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Have I Made my Case?

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Eat your Peas!

Q & A Discussion

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April Rudinapril@therudingroup.comtwitter: @TheRudinGroup

Thank You!

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