Marketing to the affluent millennial consumer, everything you need to know

marketing to the affluent

Marketing to the affluent millennial consumer is going to be a key skill for luxury companies. There is constant chatter about millennials and whether they work hard or are hardly working. It is time to put this debate aside and pay attention.

Why are affluent millennials important to luxury companies?

Millennials are going to have a big impact on our economy.  This means that you cannot discount them and their growing wealth. The number of wealthy millennials in the United States is increasing. Millennials make up nearly a quarter of affluent U.S. households. Where does their wealth come from?

Their wealth, in fact, can be attributed to inheritance and early professional success in the technology industry.

Affluent millennials are a key consumer segment. Moreover, you might find yourself competing against other luxury brands for their attention. Marketing to affluent millennials will need a new outlook. If you haven’t already, it’s time to start shifting your thinking and strategy. Luxury consumers are more valuable when they are younger as they spend 1.5 to 2 times more than older affluents. Their expenditure applies to both luxury goods and services.

How can you successfully market to the affluent millennial consumer?

To truly engage the affluent millennial, you need to learn everything you can about them. This will help you personalize not only your messaging but also the whole customer experience. Here are some ways you can better understand and market to affluent millennials:

WealthEngine’s Step by Step guide: Marketing to the Affluent Millennial Consumer

Step 1

Start by understanding the impact of millennials on your business. Affluent millennials show greater brand loyalty than other generations. Therefore, luxury retailers should strive to understand this group and their spending habits. You should have a good idea of the economic benefit this group can bring to your specific brand.

WealthEngine’s client, an iconic US-based Luxury brand, realized an ROI of 340% in just 60 days of running a direct mail campaign. The campaign helped them gain nearly 3x more revenue per customer. They were able to accomplish this by targeting a list of 22,000 households with $5M or above in net worth, and specific demographic and lifestyle attributes. Thus, their understanding of their customer led to a marked increase in revenue.

Step 2

Next, you should build on the information you already have by appending wealth, income, lifestyle and affinity information. What interests or attributes do they have in common? Do a majority of them live in one area? This information is key because it’s specific to your brand and your millennial buyers.

WE Screen can add these key attributes to your existing data. Through screening, you can develop a holistic picture of your millennial customers. Marketing to the affluent millennial customer begins with understanding their capacity to spend and their interests.

Step 3

Once you know the characteristics of your top millennial buyers it’s time to find more just like them. WE Analyze creates a look-alike model. This means you can take your screening data and run it through analyze. The solution then finds common traits and patterns among your top customers in this segment. These patterns can help you find more prospects just like them.

For example, you can find out that your customers are all between the ages of 28 and 32. Further, you can find that they are all concentrated in the Bay Area. This helps you find more prospects like them. Your marketing can already be directed to the older, affluent millennial in the Bay Area. Doing this would help you find prospects you might have previously overlooked. Secondly, it prevents you from spending on younger millennials who may not relate as strongly to your brand.

Step 4

Marketing to affluent millennials cannot be a one size fits all solution. Therefore, you shouldn’t market to all affluent millennials with a single message. This will not resonate with some of them. Be smart and focus on the ones that most resemble your customers. Then, you should personalize your message to this group.

Step 5

Finally, don’t disregard the power of taking immediate action.  Consumers are 22% more likely to consider a brand as a result of real-time marketing. Your customers and prospects engage with your website and other channels on a daily basis. Identify affluent millennials are as they interact with your channels. This will help you personalize their experience on the fly.

For instance, let’s say your website sells luxury shoes ranging from $200- $2000. Knowing your customer’s spending capacity and interests will allow you to customize their experience. If you know that affluent millennial user 1 prefers high-heels in the $600 range, the website can start showing products in that range. If user 2 prefers sneakers in the $300 range, then the experience can reflect those preferences right when they open your website.

What Else You Need to Know

There is an added benefit to marketing to the affluent millennial consumer. Engaging with and cultivating them now can help you build long-term brand loyalty and lifetime customers.

Increase your understanding of the affluent millennial consumer, contact us to learn more.

Additional Articles:

Know Your Millionaire: Single Millennials

Redefining “Luxury Brand” for Your Luxury Marketing Strategy

Keeping in Touch with Your Donors

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In times of higher costs and shrinking donor prospects, it’s extremely important to manage your current donor relationships. Your best donors are your current donors. That’s not to say you should let your prospecting go. Instead, it means you need to maintain a high-touch approach with your current donors, while you are out prospecting for new donors. Don’t fall into the common trap of thinking that a regular donor will always be there for you.

How to Keep in Touch

You need a plan. This plan is a nurturing and promotion plan. You want to retain your current donors and encourage them to increase their gifts. You also want them to network on your behalf.

In today’s age of global communications, there are many channels for use to keep in touch. Your organization should use all of them (unless someone has opted out of a particular mode): social media, events, emails, annual funds, newsletters, etc.

But… don’t overdo it. You want to keep a donor interested; you don’t want to end up deleted before read or marked as spam. Keep in mind – most of these communications should not be asks. That’s right. Timing is everything. If you ask your donor at every chance, it dilutes their interest. You want your donors excited about your work.

If a donor, no matter their level of giving, asks a question or makes a suggestion, have someone from staff personally reach out to address their concern. Your donors will feel closer to your organization. Think about how much you appreciate an actual person on the phone in this age of computer response. Your donors feel the same way.

A Personal Touch

Rather than a one-size fits all, consider a multi-class approach. You want your donors to continue to give to your organization. You also want a donor, when they are able, to increase their gift. This can be a simple process, by grouping your donors by Low, Middle, High and having a development plan for each class of donor.

Be truly donor-centered. If you treat people, no matter their level of giving, as an integral part of your mission, they will respond in kind.

For more ways to manage your donors and increase their gifts check out Growing Individual Gifts: An Analytic Approach to Data-Driven Success.

Create Your Own Affinity Score

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In the fundraising world affinity scores are often discussed. And with good reason. We all know that a wealthy constituent is just that – a constituent. When you have a wealthy constituent who is also engaged with, or has an affinity for, your organization; then you have a prospect.

So what is an affinity, or engagement, score? And how do I get one?

Affinity can be measured.  Assuming you have a donor management system or database, and that you have, over the years and with some degree of consistency, collected data on your constituents and prospects, you can use the data points you’ve been tracking to quantify affinity.

Constituent behavior is the key to quantifying affinity.  Does your constituent attend events at your organization? Volunteer?  Contribute? Contribute with frequency?  If the answers are “yes,” you’ve got yourself a prospect!  But what if you have 10,000 or 100,000 constituents in your database? It’s not as easy to identify those who are true prospects from among all those who aren’t. That’s where a scoring model comes in handy. 

Score your constituents rather than evaluating them individually

Rather than looking at each of your constituents individually for their behaviors that provide clues to their affinity for your charity, wouldn’t it be nice to have a formula against which you could score your entire file?  That’s exactly what a scoring model does. 

There are a number of ways to develop a formula, or model, to score your constituents. One approach combines analytic and qualitative approaches and be done by any person or group within your organization. An Analytic and Collaborative Method for Developing Affinity Ratings provides steps and guidance for developing your affinity ratings.

Another approach is us to develop a unique and statistically rigorous scoring model through predictive modeling. If you have the resources on staff, this can be done in-house, but for many it is more cost-effective and efficient to work with a vendor or consulting partner to develop one.

Regardless of your approach for developing your scoring model you will find it an invaluable aid in prioritizing prospects and developing meaningful segmentations for personalized appeals and communications. Measure the effectiveness of applying different strategies to move prospects along the continuum of affinity for your organization.

WealthEngine Expands Presence as the Leading B2C Wealth Data Provider in the Financial Services Industry

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WealthEngine brings premier wealth intelligence to advisors through world-class solutions and partners

April 4, 2017 – Bethesda, MD – WealthEngine (WE), the leading provider of predictive marketing, analytics, and audience development services, continues to expand its presence in the financial services industry through partnerships with financial services institutions and financial advisors and solutions that best fit the industry’s needs.

The WealthEngine Platform provides powerful wealth intelligence to financial advisors through its search and prospecting solutions. With over 240 million consumer profiles, each with 1,500 attributes, nearly a half trillion data points are leveraged to provide powerful marketing intelligence. With WealthEngine, financial advisors can:

  • Find new wealthy prospects by creating actionable custom prospect lists
  • Pre-qualify incoming leads based on net worth, income, and current assets
  • Grow their book of business by gaining access to clients’ connections for referrals
  • Strengthen relationships by better understanding clients’ lifestyle and affinity

WealthEngine has taken steps to position itself as the premier partner for all financial service institutions:

Integrations with Key CRM and Marketing Automation Platforms

WealthEngine has continued to gain momentum in the financial space as a complete solution that can integrate with technology financial services organizations are using. In 2016, the organization integrated with two significant technologies – this Industry Leading Financial CRM and Marketo.

WealthEngine extended the capabilities of an Industry Leading Financial CRM through its wealth scoring, predictive analytics and precision prospecting tools. The organization also integrated its powerful wealth intelligence data with the Marketo platform.

This Industry Leading CRM and Marketo are commonly used by those in the financial service industry. Integrating WealthEngine into these powerful platforms helps to empower advisors to build deeper, 1-to-1 client relationships, be more productive, and engage more holistically with clients anywhere and on any device. It also enables customers to gain new insights, more precisely target prospects, and engage audiences in ways that improve conversion.

Engagement with RBC Correspondent Services and RBC Advisor Services

WealthEngine has recently started to work with RBC Correspondent Services and RBC Advisor Services, a full-service clearing, custodian, and brokerage firm for independent broker dealers and Registered Investment Advisors, to bring wealth intelligence to its advisors through RBC Marketplace. The collaboration deepens WealthEngine’s penetration of the industry as a resource for financial institutions.

“Our clients are interested in using real-time data to not only define their ideal client before cultivating a relationship, but to also identify assets held elsewhere by existing clients,” said Brett Thorne, Head of RBC Correspondent and Advisor Services.  “Having access to prospecting intelligence needs to be one of our solutions to help clients achieve their business goals and become their clients’ primary advisor.”

Release of Wealth Management Solution

WealthEngine has designed and released a Wealth Management Solution to fit the needs of any financial services organization. The solution is specifically designed for the financial services industry and contains product components best suited to your goals, whether you are an independent RIA looking for a starter package or a large financial institution looking to execute complex prospecting campaigns. The solution contains components of the WealthEngine Platform, including the ability to search for individuals, build ultra-segmented prospect lists, find connections amongst current and prospective clients, and much more.

“We understand the challenges financial advisors face,” said Mark Logan, President and CEO at WealthEngine. “In such a competitive industry, the importance of understanding your audience and finding ideal prospects to build your book are key. We are excited to help individuals within the financial services industry overcome these challenges with our world-class suite of products that are the perfect complement within an advisor’s tool belt to help find new clients and increase their wallet share.”

About WealthEngine
WealthEngine™, Inc. is the leading provider of predictive marketing analytics, audience development and wealth intelligence services to nonprofit organizations, financial services, and luxury brands. Named a Cool Vendor in Data-Driven Marketing by Gartner, marketers and fundraisers use WealthEngine’s comprehensive insights to understand what drives consumer decisions and when best to engage them. Headquartered in Bethesda, MD, WealthEngine serves both the United States and the United Kingdom. For more information, visit wealthengine.com.

About RBC
Royal Bank of Canada is Canada’s largest bank, and one of the largest banks in the world, based on market capitalization. RBC is one of North America’s leading diversified financial services companies, and provide personal and commercial banking, wealth management, insurance, investor services and capital markets products and services on a global basis. RBC has over 80,000 full- and part-time employees who serve more than 16 million personal, business, public sector and institutional clients through offices in Canada, the U.S. and 35 other countries. For more information, please visit rbc.com. ‎