Communication Strategies for Donor Retention

Donor Cycle Image

In times when operational costs for organizations are increasing and donor prospects are lower, the need for a donor retention strategy takes on renewed importance. With the unprecedented economic upheaval and evolving business practices due to COVID-19, finding ways to communicate effectively and retain donors is crucial. Donor retention is part of the ongoing donor process that includes identifying prospects, building relationships, and donor stewardship.

Donor stewardship is the process that occurs once a donor has given to your organization. Stewardship refers directly to the continued communication and relationship building that happens after the initial transaction, which directly affects your donor retention rate. 

This guide covers the importance of donor stewardship in order to maintain donor retention, explains why donor retention is economically beneficial compared to acquiring new donors and how it increases your organization’s rate of return (ROI). The critical components of a consistent messaging plan to facilitate keeping donors informed of the impact their donations are having on the cause they care about and highlighting your organization’s continued appreciation for their support is explored in detail.

Keep reading or “jump” ahead to these sections:

Building and Maintaining Donor Relationships

Donor Cycle Image

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  • Beginning the Cycle with Donor Cultivation

Donor cultivation is the process of identifying and engaging with possible prospects, sharing your organization’s mission, and beginning to build a relationship before requesting a gift. Donor qualification determines which potential donors have the ability to give to your organization, and at which level they can be expected to contribute. WealthEngine’s wealth modeling feature works to help determine the status of each prospect, so you can easily identify which areas of your organization will appeal to them and which level of contribution is the best fit. 

The donor cycle begins as soon as a prospect is identified. Help these potential donors familiarize themselves with your organization’s mission, and explain why your cause is relevant to each donor. WealthEngine 9’s Engagement Science feature allows you to utilize personalized information and interact with your donors through targeted campaigns designed to increase engagement.

Insights provided by the WealthEngine 9 comprehensive platform dig deeply into the lifestyle of your donors, so you can understand what motivates them, which allows your organization to create meaningful relationships centered around your mission and your donors’ interests. By analyzing relevant wealth and lifestyle signals, WealthEngine gives you the necessary tools to personalize your campaigns and boost your donor engagement.

Once you have utilized this information to appropriately target your messaging, continue the conversation, and explain why their contribution is important. Provide examples of the impact their support will have and make it clear where their gift will be going. This provides your donors with a clear understanding of their impact. Remember, it is important to find ways to personalize your message to make it relatable to each donor. 

  • Continue to Build Relationships Through Donor Engagement

Once a relationship has been established, it is crucial to continue nurturing a connection between the donor and the organization. Focus on keeping an open line of communication with supporters through consistent emails and newsletters featuring updates of your work and achievements. 

It is vital that the relationship between your organization and its donors be one built on two-way communication. Use all of your communication channels to solicit donor feedback through interactive surveys, polls, and reviews, and be sure to announce when elements of initiatives contain suggestions gleaned from donor feedback. This will demonstrate to your donors that their suggestions are listened to and when viable, acted upon.

Invite donors to events or activities your organization is hosting so they can witness how their gifts are being used. Donor engagement will increase the likelihood of recurring gifts while strengthening your relationships with donors, which will encourage them to remain active participants in your organization.

Cost of Acquisition

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  • Increase Your Donor Retention Rate

Once a relationship has been established, donor retention is the process of retaining donors and keeping them involved in your organization after their initial gift. The goal of donor retention is to have donors give more than once and see these donors become more involved with your cause. 

Using the model above as an example, assume the initial cost to acquire a new donor is $85 while the cost of sustaining donors is $12. This graph illustrates how donor retention is economically necessary for a nonprofit to survive, as sustaining donors is significantly less expensive than acquiring new ones. 

The average year-on-year donor retention rate in the United State is 46%, which shows that less than half of all donors remain active after their first contribution. This low percentage illustrates how easily money is lost through poor retention rates, as the cost to onboard new donors is greater than the cost of sustainment. 

It is also worthwhile to seek out donors who can donate their time to initiatives. Just because a donor’s financial outlook may not make them a promising cash donor does not mean that the resources they could bring to the organization as a valued volunteer should be overlooked.

The continued cycle of donor cultivation and stewardship is vital because sustaining current donors has a positive effect on your organization’s return on investment (ROI), and plays a crucial role in your organization’s survival. Maintaining relationships and encouraging donor engagement leads to a higher ROI as your sustainment costs continue to lower and your revenue stream increases during a donor’s lifetime involvement in your mission. 

By continuing the donor cycle past the first gift through communication and strategic donor engagement, the experience donors have with your organization can improve, and your donor retention rate will increase. 

The Importance of Communicating the Impact of Donations

So you’ve received a donation, now what? Making sure your donors see how their gift is supporting your cause will be vital in retaining them for future contributions. Some organizations give the option for donors to specify where they would like their donation to be used. Finding ways to showcase these impacts can strengthen the donor relationship. 

Start with a plan for communicating the value of each donation. Share the ways these contributions are being used to sustain your organization’s guiding mission, while also enabling the pursuit of important new endeavors that align with the values of the organization. 

Continually emphasize how the generosity of your donors makes these actions possible. In the digital age, it is easier than ever to keep in touch with donors, so you can easily focus your social media messaging to showcase the impact that is being made to benefit your cause.

It’s also extremely important not to forget the importance of personal contact. Send a handwritten note thanking your donors for their gifts; have a plan for you or someone from your team to speak with them personally when they attend events, and make a point of discussing all the ways their donations are being used, being sure to listen to any suggestions donors may wish to share. Making the effort to meet and speak with them as individuals and discuss the progress the organization is making thanks to their generosity can make all the difference when it comes to donor retention. 

Communication Strategies for Retaining Donors

Communication is the most important factor when working to retain donors. Focus on maintaining early contact with your donors. Personalization is also vital in nurturing the donor relationship and small acts such as remembering to acknowledge and express gratitude to donors right away, with a quick post-gift follow-up, such as a brief phone call or a personalized email thanking them for their continued support, increases the likelihood the donor will continue to feel connected to your organization and its goals. 

Timing is important, and maintaining consistent and efficient communication will ensure a donor feels seen and appreciated by your organization. Always let donors know that the important role they play in the organization’s success is appreciated and go out of your way to ensure each donor feels welcomed by your group.

Share meaningful content and a consistent narrative. When reaching out to donors to give updates on the impact their support is having, focus on driving your messaging through intentional content. Donors will appreciate, and most likely respond to, action-driven messages rather than fluff, and a consistent narrative illustrating how their gifts are being used will encourage continued donations to your organization.

Ask for donor feedback by conducting surveys and polls, and do your best to integrate their suggestions into your work. Don’t be afraid to use your communication lines to ask your donors what they think. Reach out and hold conversations with them, so you can tailor your communication strategies to their needs and avoid donor fatigue

Developing and Implementing a Successful Donor Stewardship Program

Donor Stewardship Program

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As you continue to search for new prospects, and implement donor stewardship programs, start by gathering and analyzing your information. Create personalized campaigns, segment donors according to their financial capacity to give and their shared interests, based on insights gathered by WealthEngine 9’s We Analyze tool, which features look-alike modeling, and use this information to create a plan to reach your target audience. 

Find ways for donors to get involved beyond their initial gifts. Reach out when you need volunteers, especially if you have an event coming up that is being funded by their contributions, or when something exciting is happening within your organization. 

Donors who are actively involved in initiatives will see the impacts of their gifts first-hand and feel inspired to continue giving, which increases your donor retention rate. Donors who give of their time also need to feel they have made impactful contributions and be shown that their endeavors are making a difference. Continually prioritize highlighting the impact donor support is having on the sustainability and success of your mission using every form of communication available.

For more information about how your organization can more efficiently search for new supporters while retaining its current donor base and increasing its donor retention rate, check out a free demo of the WealthEngine platform today.

 

Retail Banking Customer Segmentation

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Retail banking, also known as consumer banking, offers financial services to the general public. Typical services offered by retail banks include checking and savings accounts, personal loans, credit card access, and mortgage loans. 

This guide covers definitions of retail banking and customer segmentation and a discussion exploring common types of retail banking customer segmentation, how data analytics are used in customer segmentation and the benefits of segmentation.

What Does Customer Segmentation Look Like in Retail Banking?

Retail banking services are commonly provided by financial institutions at physical locations, or branches, where customers can manage their money and speak in-person with a banking agent regarding other financial services or products offered. 

Most services can be provided at ATMs or through mobile banking platforms, which in recent years have gained substantial traction. Since these institutions have a broad customer base, banks often group their customers into categories based on similar traits, a process known as customer segmentation

Customers that make up a retail bank’s user base can vary widely by numerous factors including age, gender, income, lifestyle, etc. Banks can segment their customers into lists dividing their consumers into groups based on certain key characteristics and take actions that better align with each segment. 

Obtaining and acting on customer data through the lens of segmentation can have a massive impact on marketing and sales, retention efforts, customer service, and more. 

Carefully analyzing such a high volume of customer data can be daunting. By using tools and software like WE Analyze, retail banks can easily capture data such as spending habits, frequency, and capacity, and then use this information to identify the most appropriate time to make a loan offer. In turn, this targeted action improves the likelihood of retail banks earning increased revenue through customer loans.

A bank’s customer segmentation approach can vary widely and must be based upon the organization’s business model and priorities. Segments can be quantitative, such as by age and gender, or they can be qualitative, such as separation by values and interests.

Maximum value is obtained when banks merge both types of data to better understand the wants and needs of their customer segments, allowing them to offer the right product or service at the right time.

 

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Common Types of Retail Banking Customer Segmentation

There are numerous ways to segment customers. Traditionally, segments are demographic, geographic, or product based. With basic demographic and geographic information, a retail bank can tailor its marketing efforts so they are personalized to meet consumer demand. 

Here are some of the more traditional segmentation categories retail banks may consider:

  1. Location: Marketing efforts geared toward specific geographic areas.
  2. Gender: Beneficial when promoting male and female-specific products online.
  3. Age: Improve age-based predictions about customers. For instance, millennials are more responsive to digital marketing strategies, with most having an email account dedicated to promotional content and over 95% of them subscribing to email lists after “liking” a company’s Facebook page, whereas baby boomers tend to be more financially stable and have higher brand loyalty.
  4. Wealth models are helpful because they convert certain qualitative attributes into qualitative scores. Wealth modeling enables banks to know where to focus their acquisition and marketing efforts to target customers who yield the highest return on investment.

Once this information is gathered, banks refine these segments by analyzing the spending habits and capacity of their customers to increase revenue by knowing which product or service should be offered and when. In recent years, more emphasis has been placed on segments that incorporate customer spending behavior or interests, often getting quite granular with the variables, as there are many factors that impact a customer’s willingness to spend. 

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Sample Retail Banking Segments

Once a bank is able to categorize and understand the customer they are working with, they can use software to learn how to best assist them. These are three examples of retail banking segments and how they might be approached for relevant services and marketing:

    • A family living in the suburbs with two children under age six in a house less than 1200 sq ft, who have a net worth over $500k. This segment could be attractive to candidates looking for home loans to move into a bigger house.
    • An existing customer who has only a car loan for $30,000 with your bank, but is also a business owner. This segment can be approached for business banking, line of credit, or equipment loan/leasing.
    • An existing customer who has less than $50k in your accounts but who has also been flagged as an accredited investor. This segment could be open to your private banking or wealth management services.
    • An existing customer who has a net worth of over $500k and a child, aged 17, who has a debit card with your bank. This segment can be tapped for showing how to help their child build credit using a secured credit card. This works the same way as a debit card, (that their parents might be willing to fund), but their usage and payoff history is reported to the credit agencies to help start building a credit history.

For banks looking to get the most out of their segmentation, knowing how to use wealth and lifestyle information to target the right audience with the correct services is key to retaining customers, and predicting their needs.

How Data Analytics is Used in Retail Banking Customer Segmentation

Once retail banks begin collecting and screening key data from their user base, analytics can be used to turn customer data into actionable insights for each of their consumer segments. As previously stated, data analytics are most commonly used in retail banking customer segmentation to identify common traits or characteristics among customers to personalize service or product offers. 

Marketing software helps companies fill in the gaps in their customer database by using data enrichment, data cleansing, secure delivery and real-time updates to maintain high-quality data. Automation offers increased efficiency in comparison to resources lost when spent manually maintaining and updating databases, allowing more time to be allocated toward building stronger relationships with each customer segment.

 

Wealth screening through WE Screen uses proprietary wealth scores and ratings and merges them with current customer data, enabling companies to know more about consumers’ interests, political affiliations, net worth, and capacity to spend. These insights can be applied to segments to create a variety of initiatives such as reducing churn rates, improving satisfaction, and more. 

With WE Screen, banks can gather analytics on customers from their lifestyle segment using affinity scores applied to their data. 

Using a Look-alike Model

Using segmentation and affinity scores, banks can rank consumers by variables such as net worth or cash on hand to identify their most (and least) valuable customer segments, allowing them to concentrate special marketing efforts directly to their top consumers. 

Creating a look-alike model for these customers takes this application of data analytics further, allowing banks to target prospect segments they know will yield a higher profit. Look-alike modeling allows banks to gather and identify common traits from a certain customer segment and find new prospects who match those same criteria. 

Banks can use this information to create personalized messaging for potential customers who resonate with them from the very first interaction based on the segment(s) they fall into. This often increases conversions and builds stronger relationships with consumers.

Retail banks can use other basic consumer information to more quickly identify trends among customer segments and use it to further personalize interactions. Some of these data points include:

    • Acquisition source: Noting where a new consumer was acquired. This helps track where new customers are coming from, enabling banks to capitalize on those channels.
    • Initial spending: Banks can identify the first purchase a new consumer makes, helping them to make better predictions about customers’ future needs and purchases. 
    • Device usage: This enables banks to understand which devices customers use for various services, clarifying what actions can optimize those interactions and engagements.

Because there are so many pieces of customer data that can be analyzed, data mining is becoming increasingly popular for larger financial institutions. Banks use data mining to apply extensive analytics to current data and to spot trends that may not otherwise stand out. 

For instance, a bank can use data mining analytics to discover the top 5 attributes shared by customers with the highest lifetime value (LTV). Knowing those key characteristics, banks can concentrate their marketing efforts by creating personalized campaigns targeting high-value customers. 

Data analytics performed on customer segments can also be used to create more efficient predictive models for retail banks. When machine learning is integrated, it can use these models to create a smoother customer experience by better forecasting what customers need and when. 

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Machine Learning

Machine learning is gaining traction and is predicted to have a positive impact on nearly all aspects of larger technology-driven organizations, with 57% of technology professionals expecting machine learning to contribute toward improved customer experience.

Benefits of Retail Banking Customer Segmentation

Through a solid understanding of their customer segments, retail banks can personalize consumer experiences and quickly form genuine relationships with new and existing customers. Improving these efforts leads to reduced costs and increased revenue. A list of common benefits derived from customer segmentation follows: 

    • Lower Acquisition Costs

Through customer segmentation, banks can deploy more personalized initiatives that increase the likelihood of prospects becoming customers. Banks can also generate specialized efforts toward segments that yield the highest profitability. One way this can be achieved is by using a look-alike model

    • Increased Sales

By knowing customer interests, habits, and desires, banks can offer customers exactly what they are looking for when they need it the most, leading to increased revenue. 

    • Customer Lifetime Value (CLV) prediction 

CLV helps banks identify their most valuable customer segments so they can focus on acquiring customers who generate the most revenue over time.

    • Decreased Churn

Creating a personalized experience for retail customer segments increases customer satisfaction, often leading to increased customer retention and brand loyalty, decreasing churn rate.

    • Improved Marketing Campaigns

Using customer segments, retail banks can determine the best way to attract new customers, build brand loyalty, and promote specific products. Having a better understanding of the target segments will lead to increased conversion rates

Customer segmentation makes marketing, product development, and even customer service more effective by helping retail banks gain further insight into specific groupings within their customer base. 

To begin segmenting your customer list, visit WealthEngine today to see all of the powerful tools our platform offers to help organizations turn data into action. 

5 Critical Steps for Successful Giving Tuesday Now Follow Up

These 5 critical steps for your Giving Tuesday Now follow up will increase your fundraising beyond what you capture from initial donations.

Giving Tuesday Now follow up

As many nonprofits send appeals for donations to help in their response to the massive economic downturn caused by COVID-19, most will not know the true potential of their donors. You can fix this. Use these steps to generate bigger donations from your Giving Tuesday Now follow up efforts.

1. Share Your Impact in #GivingTuesdayNow Follow Up

You may have a set of thank you letters to use in your initial Giving Tuesday Now follow up. Send your emails and letters out quickly to acknowledge donors for their contribution. If you received donations electronically, send your follow up by email. For paper check donations, respond in kind with a printed letter.

Mention the impact you are having. Donors want to feel that their contributions are making a difference.

giving tuesday now toolkitFor more messaging ideas, use WealthEngine’s Giving Tuesday Now Toolkit, which contains many templates that you can copy/paste and edit to customize your words.

2. Screen Donors to Know Who Can Give More

You will get donations of all sizes, $10 or $1000 or more. How many can – and would – give far more than $100? How many are millionaires and should be targeted for major gifts? There’s a very strong likelihood that if you nurtured these high capacity donors properly, they would donate more.

Find the Major Gift Donors Hiding in Your #GivingTuesdayNow List

Nurture donors with high estimated giving capacity and propensity.

Leslie VanSant, Chief Philanthropy Officer, at the Rainforest Trust had a donor who regularly gave a small donation, under $500. She did a simple check in their WealthEngine account to see this donor’s estimated giving capacity. Leslie saw that the donor had much greater potential than her past donations. This was an opportunity for building a stronger relationship.

Through personalized engagement resulting from her wealth screening using WealthEngine, the Rainforest Trust soon got a $25,000 donation from this donor.

Listen to Rainforest Trust share their strategic plan that enabled them to grow from 1000 donors per year to 1000 per week →

After your donations from Giving Tuesday Now are in, it’s time to investigate. You now have the opportunity to nurture many new donors who can give much more than they gave.

Screening your donors for their actual giving capacity and propensity will be the most important thing you do in your Giving Tuesday Now follow up. It can double or triple the funds you raised.

If you use Salesforce, get the WE Insights for Salesforce connector to append your donor record with these details instantly. For other tools, use WealthEngine’s API to save time and get all of the information you need right inside your CRM/DMS.

3. Take a Closer Look at Your DAF Donations

Fidelity Charitable reported that during the first 4 weeks of lock downs and economic turmoil, donors of their Donor Advised Fund gave $90 million to help nonprofits deal with COVID-19 issues. So, they challenged their donors to hit $200 million by today. Compare this to $60 million that was donated in all of 2017 in response to the seven natural disasters that year, such as the California wildfires and Houston floods.

Listen to Fidelity Charitable share the exact steps you can take to get donations from DAF donors →

Donors who participate in a Donor Advised Fund generally have a higher giving capacity than what they donated to your organization. Fidelity reports that their average donor has $17,000 in their DAF. Vanguard’s minimum amount to deposit in their DAF is $25,000 whereas Fidelity and Schwab have a $5,000 initial minimum.

When you receive a donation through a DAF of $50 or $500, it’s time to learn more about your donor. They should get special attention in your Giving Tuesday Now follow up. The simple fact that they used a DAF indicates that they likely can give more.

People use DAFs to set aside cash for future donations while taking the tax deduction on the total set-aside amount at once. This allows donors to decide which charities they want to support over time. With the havoc caused by COVID-19, DAF donors are being quite generous.

DAF donors often include their personal name in the donation. Use this to research the donor’s actual giving capacity.

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This adds to the information in your donor segmentation analysis so you get a clear picture of where to put your efforts.

4. Use a Donor Pyramid to Project Your Fundraising Potential

It is time consuming to nurture major donor prospects. With limited bandwidth, you and your team want to focus on the most promising opportunities for growth and expansion. Donor segmentation can be hard.

A donor pyramid is a wonderful solution. It can help you segment your new donor list to create a prioritized list of prospects. For many organizations, this is a manual exercise that requires knowing the scores, capacity, propensity and other information about donors.

WealthEngine’s upcoming release makes creating your donor pyramid very easy. Rather than manually sorting and segmenting your donors, our new Donor Pyramid Modeler allows you to see which donors fit into each giving tier instantly.donor pyramid

This saves you weeks, even months, of grueling hours manipulating spreadsheets and digging into the backgrounds of your donors.

The Donor Pyramid Modeler can automatically screen your Giving Tuesday Now list for appropriate follow up. Using data from WealthEngine’s scores and insights, you will know which new donors to nurture for additional giving. Appropriately assign them to your major gift or planned giving officers, or keep them on your annual fund campaign list.

Reserve your seat for a free Donor Pyramid Modeler trial →

You will also see the total giving capacity of your Giving Tuesday Now donors so you know your full fundraising potential. Try it and see how quickly it can help you find your best donation opportunities.

5. Identify the Shortest Path to Reach New Connections

WealthEngine’s connections enable you to see who in your circle of close contacts can put you in touch with others you are trying to reach.

You can find common connections through personal relationships, other nonprofit board members, and professional activities.

Our client constantly report high ROI and big increases in fundraising once they start using WealthEngine. Even in a climate with tight or frozen budgets, bringing in donations is the key to your survival. A tool as powerful and easy to use as WealthEngine can mean the difference between funding new initiatives or turning off your lights.

Request a WealthEngine Demo Today →

Financial Advisor Prospecting As COVID-19 Lockdowns End

financial advisor prospecting

There’s no denying the coronavirus disease (COVID-19) pandemic has changed many aspects of how we conduct business. With 29% of workers now able to work from home, compared to  just 7% who had that capability before, your approach to financial advisor prospecting needs to take into account new ways to reach people.

McKinsey reports that 89% of consumers feel their routines will return to normal in two months. As the country slowly comes out of COVID-19 lockdowns, the way you approach private wealth management prospects will be different. Thanks to WealthEngine’s Prospect Research machine learning technology, you are better equipped to handle these rapidly changing and challenging times than ever before.

A 90-Day Financial Advisor Prospecting Plan

This guide covers best practices for financial advisor prospecting. We will go over easy options, like content marketing campaigns, educational webinars,  and video conferencing. We will also go into cross and upselling to help you accurately target financial advisor prospects who are most likely to turn into clients. 

Most importantly, we will touch on how you can quickly segment your existing clients and prospects by expansion potential based on estimated investable assets, net worth and other wealth insights. Using data and predictive analytics to know your prospects, you can speed your time to closing new deals dramatically. These options are included in the wide range of advanced analytics provided by WealthEngine.

Download WealthEngine’s Guide to Financial Advisor Prospecting in a COVID-19 World

Best Practices for Financial Advisor Prospecting

Even during times of extraordinary circumstances like the COVID-19 pandemic lockdowns, it’s important to remember the basics when it comes to prospecting.

The first step is to narrow your focus to the specific customers you need to reach. Understand your target market and find common elements between those leads. 

Doing this will make you better equipped to define your ideal client within the current market. Armed with the information gleaned from your lead research, you will be ready to begin prospecting.

Create Content Marketing Campaigns

With your ideal private wealth client in mind, start creating content marketing campaigns. Write content that speaks to the issues your target customer is facing. Send them emails with financial tips on ways to cope as we ease out of the pandemic lockdowns.

Topics for financial advisors or brokers to consider exploring with their clients include:

  • Should you review your risk tolerance in light of recent heavy market swings?
  • How can you reduce debt to increase available cash?
  • What considerations should you take into account to rebalance your portfolio?

Prove yourself to be a valuable resource, consistently providing answers to the questions customers most often ask. When they’re ready to convert, you will be the foremost expert in their minds and they will trust the information you give. 

WealthEngine can help you strategize your campaigns by assessing your existing business processes and identifying potential problems and opportunities. WealthEngine helps you design and implement financial advisor prospecting campaigns through advanced data modeling and predictive analytics. For example, our proven system helped one of our clients increase average email open rates by 25%. Another client reduced the number of touches to get an initial meeting with a prospect from 5 to 2.7. They did this simply by knowing unique insights about prospects that only WealthEngine is able to provide.

Host or Participate in Financial Educational Webinars

The inclusion of educational webinars in your marketing campaigns is a demonstrably effective tactic for increasing your marketing content audience. A whopping 72% of customers admit they would prefer to learn about services via video: It is one of the best ways to get clients to consume your content.

Share the educational information – don’t sell! Host webinars on timely topics like those listed above. It will keep you top of mind and help potential customers understand why they need your services.

If creating fresh content requires too much time or slow internal approvals, share insights from your company’s web site or other content from reliable sources. You can post them on LinkedIn or other social media channels and provide commentary with a call to action.

When you pose timely questions, like the ones suggested above, you increase your chances of encouraging conversations with the right prospects. Then, coupling that outreach by focusing on the right audience segments using WealthEngine, you can reach high net worth prospects who may not be having with their existing financial advisor and could turn to you for advice.

Schedule Virtual Meetups

A certain percentage of people still prefer to meet face to face when consulting someone about their finances. Of course with social distancing measures, connecting with clients in person isn’t an option.

As a solution, you should offer digital meetups using video conferencing software. This technology allows you to give customers the personal interaction they’re looking for while keeping you and your clients safe. 

Leverage Your Current Customer Database

If you haven’t already, now is the time for you to cross-sell your current customers. Around 65% of a company’s business comes from existing customers, making them an ideal place to go when you start prospecting. While your existing clients have invested a portion of their assets with you, you can increase your total assets under management by exploring how well your clients’ other investments are doing.

A good place to begin would be to make a list of all the services you offer and choose one to prioritize. Then, take your current customer list and filter down to those who aren’t currently using that service or are not getting as high a return on investment that you are providing. If you find they’re a good fit, open up a dialogue with these targeted clients about your chosen service.

By applying WealthEngine’s lifestyle insights, you can start dialogs that relate to saving for college education, vacation homes, retirement plans, and philanthropic pursuits.

Upsell Modeling

Take the manual work out of finding potential cross-sell opportunities through filtering with WealthEngine’s upsell modeling wealth intelligence data analytics. It builds a formula which predicts and identifies upgrades or complimentary services that will appeal to your current clients. During the COVID-19 pandemic, automating your processes will help decrease your overhead costs. This will make financial advisor prospecting yield a much higher ROI. 

WealthEngine’s Inner Circle Feature

WealthEngine provides you with yet another way to leverage your current client list with its  Inner Circle feature. Simply upload a list of your closest contacts and let Inner Circle create a list of their connections. 

Once you have this information, you can ask the Inner Circle for an introduction to the secondary connection. This feature enables you to find the shortest path to a prospect by seeing their personal, nonprofit board, and personal connections.

The WE Analyze Tool and Look-Alike Modeling

It can be difficult and time-consuming to find new customers, even when we’re not battling a pandemic. With WealthEngine’s highly effective WE Analyze Tool, you can take advantage of look-alike modeling to create a list of your top sales leads based on the ideal characteristics of your target customers.

Even if your data is incomplete, WealthEngine will fill in the gaps with data on potential clients’ wealth, lifestyle, interests, and more. Then, WE Prospect scans your current customer lists to find new ones with those same traits. This is look-alike modeling, and nobody does it better than WealthEngine.

Use Predictive Analysis to Find Financial Advisor Prospects

WealthEngine’s predictive lead analysis compares new lists against your best customer list. Everyone on the new list is scored in comparison to your best customer list, then divided into segments. 

Using segmented lists enables you to prioritize your financial advisor prospecting efforts and concentrate your resources on the highest value prospects first. This saves time by pinpointing  your most valuable leads based on their likelihood of conversion.

Artificial Intelligence and Machine Learning

Using Artificial Intelligence to aid with prospecting will help you build predictive models by analyzing your database. These models can then be used to identify your next best prospects without requiring you to do the manual work. Machine learning continues to make your lists better through its rapid learning process.

Since artificial intelligence powers the WE platform, it’s able to quickly analyze records much better than you could manually. For example, if you provide a list of 200,000 people with over 50 attributes for each person, the AI could quickly handle this request and rapidly give you feedback. Again, the more you do this, the better machine learning will refine your unique model.

Help Your Community

During this time, financial advisors should go beyond their usual community outreach programs. Your goal is to extend a hand that helps relieve stress and aids others as they struggle to make it through these economically uncertain times. For example, you could reach out to your clients and connect them with people who can assist with mortgage refinance. 

Even comparatively small gestures such as offering to grab groceries for elderly customers goes a long way toward building trust in the community. Of course, doing these things won’t give you immediate leads. However, if you’re able to go the extra mile, once this pandemic is over, your neighbors will remember your name. 

WealthEngine’s Financial Advisor Prospecting Software

WealthEngine’s predictive prospecting platform helps you focus your financial advisor prospecting funnel. The platform serves as a valuable educational tool that keeps your current customers informed while identifying new opportunities. Our filtering and modeling systems are unmatched and will help you successfully find, reach out to, and close new prospects.

Our application program interface (API) will connect seamlessly to your current customer relationship management (CRM) tool, such as our WE Insights for Salesforce, or other systems to ensure data is updated in real-time, giving you the most accurate view of your customers. WealthEngine is easy to use so you can spend your valuable time building relationships, not looking for new leads.

To get started with highly effective financial advisor prospecting using wealth data and analytics, contact WealthEngine today.

What Organizations Can Do Amidst COVID-19 and an Economic Downturn

This is an unprecedented time in modern history. With markets falling dramatically and lock downs and social distancing affecting the country, the full economic impact of COVID-19 remains uncertain. It is no longer business as usual. In the 2008 recession, organizations that focused on their return on invested capital came out ahead. Those who retreated faltered.

What can you do right now to minimize the risk of your 2020 goals slipping?

The answer starts with getting back to the basics: know your donor, know your customer.

Follow this proven 3-point strategy to keep your momentum in the midst of economic instability and uncertainty due to the coronavirus, COVID-19.

Managing in Uncertainty?

Read our guide to learn key strategies to protect and grow your organization amidst economic instability.

1. Engage with Your Community, Focus on Impact

Historically, during economic downturns, organizations that use this time to create stronger relationships come out ahead.

Being there for donors and customers gets you closer to them. The more you do for your community, the more goodwill you generate. This builds your brand and tightens your relationship with your audience.

To connect with your audience, share stories about the impact you are making on others during this difficult time. You will get attention by touching people’s hearts.

Luxury Brands

LVMH, home to brands such as Louis Vuitton and Fendi, is manufacturing hand sanitizers in their factories that normally produce perfume.  The goal is to help address the dramatic shortage of hand sanitizer, especially in hospitals that so desperately need it. By showing their commitment to a larger cause, they are reinforcing their brand. They have already received a sizable amount of free publicity for their efforts.

Financial Institutions

Banks are offering very low or no interest loans and short-term lines of credit to small businesses. WaFd in Seattle, an area hit very hard, is offering a $200,000 business line of credit for 90 days and is fast-tracking loans up to $30,000 for small firms that saw a 10% or more drop in cash flow due to the coronavirus. They are standing by their community and have prepared $100 million for these loans.

Charities

Just about every type of organization can have an impact. Celebrity chef José Andrés closed his restaurants and set up community kitchens to offer packaged lunches to those who aren’t able to get meals. As the founder of World Central Kitchen, his organization provides relief during natural disasters. While he loses money providing free meals, his attitude and approach is to pay it forward.

Travel and Hospitality

Several colleges have shutdown, leaving students with little time to move out and return home. One student got to curb side check-in at the airport only to find that her bag was overweight. She had packed her text books and other heavy items. Rather than charge $75 overweight baggage fee, the Southwest  Airlines rep asked if she was a college student returning home due to COVID-19. Exasperated, she said “yes!” The airline’s rep immediately waived the extra charge so the student could get home without added stress.

The student’s mother shared this heartwarming story on social media. While Southwest isn’t a luxury brand, the student and her mom (and many of her social media friends) now have a stronger relationship with the company. The airline rep’s gesture generated far more goodwill than $75 of advertising could buy.

Knowing what your customer needs right now will score points that will create a stronger relationship going forward. It will also help you increase your return in invested capital.

2. Stay Top of Mind, Don’t Retreat

With the Dow Jones losing so much of its value in a week, even wealthy consumers will feel (and likely be) less rich than they were a month ago. They may postpone previously scheduled meetings that you set up. Some might say that they are not in a position to do any business with you due to significant losses in the stock market. Others could hold back on financial commitments till they see a rainbow after the storm passes.

Staying top of mind is a critical element in maintaining momentum during an economic downturn. Those who retreat will lose market share.

While your first instinct may be to reduce your investments, retreating from activity can make your situation worse.  John Quelch’s Harvard Business Review article on How to Market During a Recession stresses that organizations should maintain their marketing efforts during a downturn. Again, it’s not business as usual. How you approach your prospects to build bonds will influence their lifetime value with your organization.

This blueprint works regardless of your type of organization. The Chronicle of Philanthropy recommends a very similar strategy for charities to connect with donors in a looming recession.

Now is the time to reach out with a personalized message.

Your outreach will be different for everyone so knowing what makes your prospects, donors and clients tick is critical. You can use your WealthEngine account to find insights to personalize your approach to donors, customers and prospects. Learn what types of causes they donate to, who their connections are, and other intelligence to prepare your conversation.

3. Strategize for a High Return on Invested Capital (ROIC)

In a tighter market for dollars, your competitors include everyone pursuing the wealthy client’s cherished bank account. This includes nonprofits vying for their cause, banks claiming they can manage wealth better, and luxury brands who offer unique lifestyles and experiences.

The stocks deemed as winners in the 2008-2009 recession had one thing in common. All of them had a high return on invested capital (ROIC) that outperformed their peers. The Financial Times reports that organizations who prioritized ROIC generated 15-20% growth whereas those who retreated lost 15% or more.

History will repeat itself. Inaction now will hurt your organization in 2020. Optimizing your invested capital can make or break your year.

The key to success is to make your outreach as efficient as possible. That’s why getting back to the basics, knowing your donor or customer, is so important. Wealth and lifestyle insights about your audience empowers you to craft your message in ways that your competitors won’t.

Small Gestures Build Big Bridges

The country’s lock down is preventing in-person meetings. Many organizations are scrambling to move online to conduct business. Their staff is simultaneously dealing with children who are now at home due to school closures. If you know a top prospect has children under age 18, something you can find instantly using WealthEngine, you know they are likely struggling with schools being shut down temporarily. Send them a link to kids activities. It can help them stay occupied while the whole family is self-quarantined.

Use wealth and lifestyle data to increase your return on invested capital. It can help you come out of our current economic downturn better positioned for growth than others who are competing for the same dollar. You want to show that you care now, not later when things are rosy.

Markets abruptly tanked, leaving many people nervous. Some people will be reluctant to commit immediately. This is precisely why you need to know who your best targets are.  They can withstand market fluctuations better than others.

We will eventually get out of this economic situation and you want to be as well-positioned as possible.

In every downturn, those who invest in getting closer to clients come out ahead.

New to WealthEngine? Maybe we can help →

Close 2019 Strong! WealthEngine 9.1 is Live with Refreshed Data

wealthengine dashboard 9.1
We’ve got a Thanksgiving treat for you to help you reach your #GivingTuesday and end-of-year goals. WealthEngine 9.1 is live and includes updated data and more to help you close 2019 and start 2020 strong!

Update Your Records for Higher Accuracy

Outdated emails and phone numbers cost you time and money. Update your data now so you spend your precious time connecting with people instead of hunting for contact information. WealthEngine 9.1 includes:

    • 240 million updated emails
    • 140 million updated personal phone numbers
    • 167 million charitable donation records with confidence scores on match
    • 500,000 new donation records added monthly
    • Stock holdings for nearly 350,000 insiders
    • Many more updates coming soon!

Know Your Donor or Customer Instantly

Our new WealthSignalTM graphic shows you important information in a snap. Use it to help qualify the prospects that are your best bets. See their connections to find inroads that can lead to a warm introduction. It’s fast, easy and empowers you to make informed decisions quickly.

Drive Productivity with Actionable Intelligence

When you login, you’ll see a new dashboard with your recently visited profiles, tips, best practices, and the latest product announcements to help you drive your mission forward.

wealthengine dashboard 9.1

WealthEngine’s Integrations Change December 7

CRM/DMS Integrations

On December 7, 2019, any integrations that you are using to pull WealthEngine data directly into your CRM/DMS will automatically be directed to our new 9.1 platform.

Grateful Patient Program Clients

Starting December 7, 2019, please login to WealthEngine 9.1 (not 8.2) for your nightly screening results.

Not Using Integrations Yet? Get Started – You’ll Save So Much Time!

If you are using a CRM/DMS but haven’t yet integrated WealthEngine into it, please contact us. We’ll help you get set up so you see WealthEngine’s insights as part of your workflow.

Questions? We’ve Got Your Back!

We’ve updated our online knowledge base to help you find answers to your questions quickly. We have an updated library of documents, guides and videos that walk you through the improvements in WE 9.1 and drive more revenue to your organization using WealthEngine. Bookmark this page for quick reference.

Visit the knowledge base →

Start Using WealthEngine 9.1 Today

WealthEngine 8.20 will be available until January 3, 2020

Not a client yet? Request a demo →

Money In Motion – Find It, Capture It for Your Retail Bank

Money In Motion

You spend a lot of money acquiring new customers, yet 25% will churn within the first 12 months, and 50% of those will churn in the first 90 days.

By adding just one additional financial product to your customers’ portfolios, you increase retention, protect your client acquisition investment, and build lasting relationships. The challenge is knowing what they’ll buy next so you can personalize your customer journey.

That’s what WealthEngine does. It helps you know your customer in ways you never thought possible. It helps you capture money in motion. Here’s how.

How to Find Money In Motion

Meet Wendy, she’s a wealthy earner not done yet. Her financial journey begins with her first job, her first car, saving for retirement. As Wendy grows, her banking needs change. She marries Henry – a high earner not rich yet – and they start to invest, they buy a bigger house, start a business, and inherit wealth.

find money in motion

WealthEngine’s data and analytics help you find the Wendys and Henrys based on the financial product they need and when they need it.

Marketing Strategies to Capture Money In Motion

Using WealthEngine’s deep data and analysis, your bank can discover insights such as net worth, business ownership, inner circle connections, real estate, lifestyle interests, and much more.

Personalize your marketing campaigns by predicting which financial products your customers and prospects are likely to buy next.

Arm your front line with guided knowledge on what to recommend so they have a better first call with clients and identify the best opportunities to build deeper relationships.

Marketing Campaigns to Increase Lending and Deposits

For example, there are nearly 60 thousand millionaires in the Atlanta metro area. WealthEngine can tell you who doesn’t have a premium credit card, or who owns three or more properties, so you can identify top prospects for your platinum credit card or mortgage products. Adding our data to yours will enable you to take customer segmentation to a completely new level.

Another example: find growing families who need more space and are looking for a bigger home or a new car. They are ideal prospects for lending opportunities.

home loan prospects

Identify business owners or accredited investors who are about to have a liquidity event that will increase their investable assets. They are ideal candidates for increasing deposits with your bank.

Our modeling suite can answer key questions to find money in motion like:

  • How to deepen your share of wallet
  • What next best product to offer
  • Who is at risk of attrition

When you know other factors that are influencing a prospect’s life, you can find money in motion. WealthEngine can provide these insights to you.

Get Wealth Data and Model Results Inside Your CRM

This is all made easy with our integrations. You’ll have a 360 degree view of customers right in your CRM. Our API allows for data appends in real-time so that you always have the most accurate view of your customers.

WealthEngine is helping some of the biggest banks in the US reduce their time to close more business and increase their omnichannel marketing campaign effectiveness. We can help your bank find money in motion and drive a measurable impact on your marketing and customer retention investment.

Catpure Money In Motion

WealthEngine can help you find money in motion. Test drive our platform today to see insights you never thought possible.

How to Calculate Donor Lifetime Value to Predict Future Donations

donor lifetime value

Knowing donor lifetime value for each of your contacts can make your nonprofit fundraising efforts go much faster. You can use it to forecast the future giving of your constituents. Here’s how to calculate donor lifetime value, which can help you determine which donors to nurture more closely.

What is Donor Lifetime Value?

Donor Lifetime Value is an estimate of how much you can expect a particular donor to contribute to your organization over their lifetime.

There are many factors that go into calculating what this number should be. Not only should you take into account a donor’s wealth indicators but you should also look at their propensity to give to related causes.

One WealthEngine client found that by simply asking a specific 1% segment of their donors to contribute just $100 more in a year, they would generate over $200,000 in additional funds. In five years, this would generate more than $1 million in new funding from “underperforming” donors.

The beauty of creating such a model is that it can pinpoint exactly who to target and what your ask amount should be.

Want to learn more on how to nurture your donors for a lifetime? Download our Capital Campaign Thank You Letter templates to create that connection.

Creating a Donor Lifetime Value Model

The donor lifetime value wealth model takes into account the giving history to your organization, donation frequency, contributions to similar organizations, and other factors.

WealthEngine’s deep insights into donation habits start with financial data about a donor to determine their giving capacity. The model then uses philanthropic, demographic and lifestyle data as part of the data set to predict how much a donor is likely to give.

Aside from these factors, our data science team uses our proprietary database, which has profiles on over 250 million Americans, to calculate the donor lifetime value.

These insights can help you estimate the churn risk and future giving behavior of your existing donor base.  Armed with this information, you can maximize fundraising ROI across the donor’s lifetime instead of focusing only on your next campaign.

How WealthEngine Predicts Future Donations

WealthEngine’s methodology uses machine learning techniques to determine donor lifetime value.

  1. We start with randomized partitions of known giving history. Some segments of this data are used for calibrating the model and others are used to validate it. We also evaluate various types of predictors using the data sets our clients provide.
  2. Then, we apply machine learning algorithms that iterate and learn from each round of data analysis.
  3. Once the model is created, we cross-validate it to view the model performance. This gives an overall confidence level in the model.

Using a Model

Using these machine learning techniques, WealthEngine helps nonprofits determine very useful insights like:

  • Churn likelihood: probability that the customer will not donate anymore after their last donation
  • Next gift amount: expected amount of the donor’s next donation
  • Future gift count: expected number of donations within a 20-year period
  • Future gift total: expected dollar value of donations within a 20-year period
  • Total Donor Lifetime Value: Past plus expected future donation amounts

Equally important, the donor lifetime value model can help you identify the high-value donors at risk, including those with:

  • Moderate-to-high churn likelihood
  • High expected next gift amount or future gift total

When you know these valuable insights, you can identify approaches to increase the number and amount of gifts from your donors. You will know the potential for donor fatigue that occurs due to frequent contribution requests. This can generate higher conversions while saving your marketing investments.

Calculating Donor Lifetime Value for Your Nonprofit

WealthEngine offers multiple donor lifetime value modeling options. In addition to custom models, our popular 4-pack of pre-built models can shine a light on specific major gifts, planned giving and other opportunities within your existing base of donors.

Learn more about how to calculate and apply donor lifetime value to accelerate fundraising for your nonprofit. Take a minute to fill the form on the right and a WealthEngine rep will contact you very soon.

Financial Services Marketing Tips That Leverage Current Industry Trends

Financial services trends have all veered towards digitization in recent years. While these trends are indicative of progress, they can also present certain issues for marketers. Marketers at financial firms need to leverage technology and data to make their offerings resonate. With this in mind, let’s review financial services marketing techniques that will modernize your approach.

Omnichannel Marketing for Financial Services

One of the major issues in financial services stems from digitization. This means that more customers prefer to interact with FinServ professionals via digital channels. As a result, marketers are tasked with the ability to maintain a human touch in new ways.

The primary way to achieve this is by taking an omnichannel approach to your financial services marketing. This means that your customers must have a consistent experience no matter what channel they choose to interact with you through.

For instance, let’s consider the case of a retail bank. More customers bank online these days. Whether they use your website for a money transfer, your mobile app, or they come into a branch, they should have the same kind of experience. If your brand’s tone is more personable when local residents interact with their teller, the same warm interaction should come through, as if they were communicating with a chatbot.

Let’s consider different channels and how you can make marketing effective in each medium.

financial services marketing

Digital Marketing for Financial Services

Financial Services Marketing is now more reliant on digital techniques. It is possible and necessary to take an omnichannel approach even in your digital strategy. Your email marketing, content, social media marketing, among other strategies, should all reflect your core brand.

For instance, a customer care query could come in through email or via Twitter. Your response time and tone must be consistent across channels.

When it comes to digital marketing for financial services, one thing is crucial: maintaining a personal touch with your customers. Financial services marketing needs to build a high degree of trust. This can be enhanced through the human touch.

As a marketer, you need to find the right balance between leveraging technology and making your customers feel like they are receiving personal attention. Artificial Intelligence is becoming more adept at this over time.

Personalization comes from refined segmentation. Begin with understanding what makes your customers unique. Then, segment them on the basis of preferred channels, life stages, wealth indicators, etc. When you understand what each segment values, you can communicate in a way that truly resonates and makes an impact.

 

marketing for financial services

Let’s review different digital media and how you can increase engagement across them.

Content Marketing for Financial Services

Thought Leadership is a dominant theme under content marketing for financial services. This stems from the fact that financial products not only require educating customers, but they also require building trust.

However, for your thought leadership strategy to be effective, you need to offer real value to your readers. Clickbait or misleading titles guiding readers to pieces that don’t offer any insight will have an adverse effect on your brand.

To differentiate your content strategy, don’t just discuss trending topics in your industry. You need to weigh in on these topics by contributing your own point of view. This offers your customers insight into where you stand, plus it helps you stand out with your unique perspective.

Furthermore, content marketing needs to help solve problems and provide pertinent information. Your customers search for certain keywords, read your blog posts, emails,  or your how-to manuals in the interest of learning about something. When your content is written to help provide clarity or new information around a particular subject, it will automatically draw your customers in.

Email Marketing for Financial Services

Email marketing is all about personalization. This does not end by addressing your customers by name in your mass emails.

For email marketing to be effective in the financial sector, you need to understand customer preferences beyond the surface level. This means that you should know what product or service best fits their life stage. Further, it is important to know what kind of messaging would resonate with a specific customer. This extends to the tone of voice, images, and even the frequency of your email communication.

Automation tools for financial services marketing can help you understand what topics a customer is interested in. Knowing this means that you can tailor your communication to offer them the right solution at the right time. This, in turn, also helps build long-term relationships with customers.

Marketing Automation for Financial Services: Find Wealthy Clients

Many wealth managers and marketing teams fall into the trap of using the same old techniques for financial services marketing. Marketing automation for financial services is only possible when you know your customers well.

Personal networking, social media, sponsoring events, and other methods to meet wealthy prospects, are all useful techniques. However, you may end up spending your valuable time pursuing leads that are not qualified.

By using automated data analysis and prospect modeling, you can quickly screen and qualify prospects. Better yet, you can reduce sales cycle time and find new clients that are very much like your best ones.

How do you begin?

The answer lies in big data. You may already have large volumes of data. But, do you have the right kind of data? Furthermore, are you leveraging this data in the right way?

In other words, you can find wealthy clients that most financial firms overlook. When you tap into these methods for marketing financial services, you can shorten your sales cycle dramatically. Here are 5 strategies that will help you understand if you are using the right kind of data, the right way:

1. On-the-Fly Wealth Screening from Your Phone

You meet people everywhere: professional events, networking breakfasts, the gym, maybe even at your daughter’s soccer tournament.

Wouldn’t it be nice if you could enter your new-found acquaintance’s name into your phone and instantly learn whether they could be a good prospect for you?

You can.

WealthEngine’s instant wealth search feature lets you scan over 250 million U.S. contacts and see their wealth profiles. You will learn details on their interests, donation history, real estate, and other luxury property holdings and many other data points. The data is gathered from numerous publicly available databases and compiled into an easily accessible system. This information can completely change the game in your company’s financial services marketing efforts.

It also provides ratings and scores. These can indicate a person’s propensity to spend, to save, and to give (known as P2G).  Propensity-to-Spend (known as P2S) can indicate a person’s likelihood of purchasing luxury goods. You can then use these personalized marketing insights to guide your dialog appropriately.

propensity to give score on mobile
Example of what a propensity score would look like on your phone

2. Batch Prospect Research Before You Attend an Event

Let’s say your company sponsored an event, maybe a golf tournament, an art expo, or a dinner for charity. You’re going to attend these events to meet new people. You want to focus on the individuals who have the highest potential to do business with you.

Traditionally, you would mingle and look for introductions from those you know. You would spend time talking to many people to determine whether they are a qualified prospect.

There is a much better – and significantly more efficient – way to do prospect research. More importantly, this form of financial services marketing will help you find who you should talk to at these events.

Wealth screening can pinpoint exactly who you should look for so you spend your precious time effectively.

financial services marketing

Prior to the event, ask the host for a list of people who have RSVP’d. Then, you can upload the list into WealthEngine as a batch to do a wealth screen on everyone before you attend.

Within minutes, you will get back a list of the most wealthy attendees who will be at the event.

These are the people you should spend the most time with.

This method of marketing financial services allows you to do prospect research quickly. It will save you hours of wasted time pursuing unqualified leads.

You can also connect WealthEngine’s data directly to your customer relationship management (CRM) tool, such as SalesForce. When you use APIs in the financial services marketing, you can discover wealth insights on everyone as you add them to your CRM. There’s no need to login to WealthEngine or change your workflow.

API integration

3. Create a Model of Your Best Wealth Management Clients

Your financial institution’s research department produces financial models all the time. You can use the same concept of modeling to create a detailed profile of your best wealth management clients.

To illustrate, these models identify the characteristics of your top clients. You will learn your prospects’ demographics, assets, real estate and luxury property ownership like boats and planes, luxury goods spending habits, favorite charities, and interests.

This level of detail in financial services marketing is significantly more useful than simply knowing someone’s name and address. In fact, the more data you provide, the more information our data scientists can model.

Many of our clients learn that they are spending their time pursuing prospects who have a very low likelihood of turning into wealth management clients. Financial services marketing becomes a lot easier when you use machine learning to get deeper clarity on who your best prospects really are.

4. Finding New Prospects Who Match Your Model

Once you have a well-defined model of your ideal client, you can use it to find others who have similar characteristics. There are several ways to do this efficiently.

API Connected to SalesForce

If your wealth management firm uses SalesForce, you can use WealthEngine’s SalesForce Connector to instantly get a score of every new prospect you add. This way, you don’t have to change anything in your workflow to accelerate the marketing of financial services.

Just add names to SalesForce and we’ll instantly send you a match rate based on the model of your best clients. You’ll know right away whether this prospect is someone you want to spend your valuable time on.

Match Your Model to 250 Million Records

WealthEngine can also run your model against our massive database to find people you don’t know but who match your ideal client profile. This is one of the fastest ways to leverage financial services marketing to find wealthy clients who could become some of your best clients.

You can then reach out, invite them to breakfast, or a round of golf, knowing that they fit the profile you want to pursue.

5. Identify Money In Motion

Creating a model and prospecting for clients based on that model will help you identify people to pursue. Next, you’ll want to monitor their money in motion.

Money in motion refers to knowing when an individual you are tracking has a financial event. Real estate purchases and public company stock sales are examples of publicly available data, all of which WealthEngine tracks.

When you know that a prospect has a liquidity event, you know they are likely going to do something with that money. WealthEngine’s tools can email you a report as soon as someone on your watch list sells public company stock.

These wealth indicators give you more clarity on what’s happening in the lives of your prospects, giving you the ability to hyper personalize your marketing.

Financial Services Marketing Using WealthEngine

WealthEngine can help you create very detailed segmentation and analyses to focus on the exact audience you want to reach.

Know Your Client

Get insights like estimated net worth, cash on hand, investible assets, interests and passions. Know your client like never before.

Using Big Data and Fundraising Data Analytics for Marketing

fundraising-data-analytics.png

The evolution and growth of big data is transforming the way we market and connect with donors and prospects. But, what does this data mean for commercial non-profit markets, and how can it be leveraged? Let’s explore how big data and fundraising data analytics is influencing our practices, and how we can navigate through this new space effectively.

What is Big Data?

Ask 10 people, and you may get 10 different answers. Big Data can generally be defined as data from multiple sources, combined in ways to make it informative and actionable. By combining data from disparate sets, patterns and insights emerge, and this actually creates more data! As we recognize patterns and trends in the data, these relationships, not previously a part of the data set, become new bits of data ripe for mining and analysis.

As time goes on, bigger data sets are also generated because information is being collected from social media, smart phones, cameras, satellites, remote sensors and other newly emerging technologies. 90% of the world’s data today has been created in the last 2 years alone. Every day, we create an estimate of 2.5 quintillion bytes of data. That’s 2.5 with 17 zeroes behind it! Needless to say, there’s an enormous amount of data that marketers or fundraisers can take advantage of.

What does Big Data mean to the marketer or fundraiser?

 

To the fundraiser or marketer, Big Data is the ability to see each consumer or prospect in a 360-degree view, and to personalize messages and interactions with that individual to create the ultimate purchasing or donating experience. We all know relationships are the key to successful marketing. Making sure that our prospects have the best experience they can have with our organization, whether it is a luxury brand selling luxury goods, or a nonprofit seeking funding for their mission, will improve their results.

One of the key buzzwords in marketing these days is “relevance.” Companies and organizations are generating content and practicing content marketing, but the key to making content marketing work is to be sure that the content we put forth is relevant to the audience we are targeting. That’s where  fundraising data analytics and big data comes in. Knowing your customers’ likes and dislikes; buying and donating behaviors; relationships with others in your universe; and most importantly, their wealth, and buying or investing power, allows you the ability to make your messages truly relevant on an almost individual basis.

Want to learn more about how to utilize data in your fundraising strategy? Download our Data-Driven Annual Fund workbook today!

How can I harness the power of Big Data?

So, given the high volume of data points generated, and the barriers to accessing and processing all these points, how can marketing or fundraising professionals reap the benefits of Big Data? To leverage fundraising data analytics, and big data, the fundraiser and marketer must:

  • Capture
  • Curate
  • Transform
  • Normalize
  • Parse
  • Combine
  • Analyze
  • Report, and
  • Visualize

These actions and activities would require more resources than most small to mid-sized businesses have on hand. So how can the small shop leverage  big data? How can the mid-sized nonprofit use fundraising data analytics to continue measuring the relationship between investment and fundraising?  How can this data be utilized without investing inordinate resources on data collection, curation, and analysis?

Selecting the right Big Data Partner

The answer is finding the right partner. Choosing the right Big Data partner can make your marketing and fundraising messages resonate with your unique audiences. When you’re shopping for a data partner, consider the following questions:

Does this partner understand wealth?

While behavior is an important element, wealth is the true driver for both purchasing and donating.  Does this partner have experience curating data?  For all of us who have tried to merge two spreadsheets of different sizes, or import data into an existing structured CRM, or transform text into numeric data, we can begin to glean the many challenges of working with huge data sets that require many steps to massage into a meaningful whole.  It’s beneficial to work with a Big Data partner who routinely works with data sets of all types and sizes.

Is the potential partner willing to work with you to select the data you need to append, and to customize a data solution for your needs?

Too much data can be as bad as not enough data.  Make sure you get the right fit by selecting a partner who can assist by understanding your needs and providing a customized solution. It’s equally important that your partner is leveraging resources that allow you create a wealth search and help you understand a potential or existing donor’s capacity to spend, invest, or give.

Does the partner add value?

Data is the foundation for knowledge and insight, but you need a partner with a robust analytics understanding who can add value to your data with ratings and scores, predictive modeling, clustering analysis and other techniques.  Analysis is where the true value of data is derived.

Will the partner work with your data?

Much of your most valuable data resides in your own CRM or DMS.  By combining the data you have with additional Big Data sets, you can extract the most value. Having a partner who can work with both, and who understands your business needs and challenges will reap the best results.

Does the partner have all the data you need?

Shopping piecemeal for data is time consuming and difficult.  So finding one partner who has wealth, demographic, lifestyle, behavioral, and biographic data at the individual and household levels. This can parse, normalize, and combine all your data points, and saving you hours of aggravation.

 

Organizations of any size and any level of data competency can harness the insights of fundraising data analytics with the right partner. If you’d like to learn more about the power of  fundraising data analytics, contact us to speak with one of our experienced consultants.