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.
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.
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.
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.
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.
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.
Then, we apply machine learning algorithms that iterate and learn from each round of data analysis.
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 atrisk, 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 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 marketingtechniques 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.
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.
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?
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.
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.
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.
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.
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!
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:
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.
A donor research profile template can help you capture the most important giving capacity and propensity indicators of your target audience. Here’s what you should collect during your donor prospect research.
Donor Research Profile Template
A donor research profile template contains details that allow you to create an outreach strategy for your donor prospect. Be sure to add these sections in your template – or better yet, use a wealth prospecting tool like WealthEngine to manage all of this information for you. It will enable you to follow prospect research best practices.
General Contact Details
General contact details for your donor research profile include your prospect’s name, primary address, age, gender, and phone/email. It is important to know their primary address for your outreach efforts. Don’t confuse it with a vacation home that they visit only a few times a year.
Gathering family information as part of your donor prospect research is important because they influence your prospect’s decision. You can also research family members for connections to your organization.
For example, if your donor prospect’s spouse has given to a particular cause, you may be able to influence your prospect by making a meaningful connection to that cause.
Professional and Social Affiliations
In donor research, identifying your prospect’s affiliations, both professional and social, gives you tremendous insight into what they find important. As with family connections, you may find connections with their affiliations, too.
If your prospect is on the board of an organization that shares similar goals to yours, they may be more open to your messaging. Using wealth screening tools, such as WealthEngine, you can find and cultivate meaningful relationships with potential donors and their circles of influence.
An important part of your donor research profile template is a section on interests. Your prospect may have the capacity to donate to your organization, but not the inclination. If there is no history of related activities or expressions of interest in something related to your cause, it can mean that the donor prospect isn’t the best fit for you to pursue.
Real Estate and Stock Holdings
A very strong indicator of wealth capacity is personal property. One of the most predominant markers is the number and value of their real estate holdings. Wealthy people often have expensive homes and have vacation residences.
If they own a large amount of stock in a public company, they may be required to disclose when they sell. In your donor prospect research, keep tabs on this information so you know when they have a surge in cash.
While not all wealthy people buy luxury items, many of them do. If they own expensive jewelry, a boat, a jet or even a jet contract, it suggests that they likely have a large amount of disposable income.
Past giving is a strong indication of future giving. Your donor research profile template should have a detailed section that outlines your donor prospect’s prior giving history. This includes which organizations they have given to and the amounts.
It’s one thing if a donor wants to contribute to your cause. It’s an entirely different thing if they have the capacity to go beyond everyday giving of smaller amounts.
You may be wasting your precious marketing dollars to generate $100 or $1000 from a donor who could contribute $50,000.
Instead, do smart prospecting. When you use wealth screening tools, like WealthEngine, that include numerous data points on your donor prospects, you will know who warrants a more personalized outreach effort.
Interested in creating data-driven campaigns? Download our Data-Driven Major Gift Campaigns Workbook today!
Gather all of the information for your donor research profile template can be very time consuming. WealthEngine can provide you with all of this information instantly so your donor prospecting process becomes much more efficient.
Additionally, you can tag the donor prospects you want to monitor. This helps you stay on top of any changes that may affect your nurturing efforts.
Another key factor that many prospect researchers overlook is how to use the data in your donor research profile template to extrapolate a model to find “look alike” donors who are not yet on your radar.
WealthEngine’s modeling tools can create a profile of your best donor and scan it against 250 million records to find your next best major donors.
This saves you time and money and hones in on the exact audience that will enable you to achieve your donation goals.
In this age of data driven marketing and fundraising, reaching wealthy people requires a very personalized strategy. Wealth screening can completely change your ability to generate more money. It enables you to pinpoint the best prospects with laser-precision accuracy.
Here’s how to use wealth screening to generate millions of dollars.
What is Wealth Screening?
Wealth screening is the process of applying wealth-related information to a list of contacts to understand their giving and spending capacity and propensity.
When you append your contact database with wealth attributes, you will know who within your list you should reach out to. You will also know how to spark their interest, and – most importantly – how to connect with their network to expand your reach.
How Wealth Screening Works
There’s a good chance that you have millionaires in your database of contacts already. Wealth screening overlays your existing database with additional information about wealth, interests and other useful insights.
This results are astonishing. In a matter of minutes, you get a highly curated list of targeted individuals that fit your buyer personas like a glove.
Not only is this a dramatic time savings, wealth screening also identifies which prospects you should pursue. This can save a lot of money in your outreach campaign budget. The two key components as you screen a contact for wealth are capacity and propensity. The best prospects have both components, not just one.
For example, let’s say that your nonprofit focuses on political advocacy. What if a rich prospect that you are targeting has never donated to a political candidate or cause? That means that they may not be the best prospect for you. They have the money, but not the intent. Going after them is a waste of your time and resources.
However, what if your target a prospect has a history of giving to politicians who align with your mission? More so, what if they have a net worth above $10 million? This wealthy individual has both the capacity and the intent to donate. The person with these characteristics is an ideal prospect for you.
You can drastically lower your cost to raise a dollar or generate a sale when take into account your prospects interests and spending or donation history. As a result, you can spend your precious time focusing on those most likely to generate the most for your organization.
How to Do a Wealth Screen
While there are a few vendors that provide wealth-related data, only WealthEngine’s data includes extensive profiles on 250 million Americans and is updated regularly.
Screening for wealth is a fairly straight forward process. You simply upload your list and select which attributes to apply. WealthEngine runs the screening and provides you with new information about your contacts. You can also reach out to WealthEngine’s support team for guidance.
You can also use WealthEngine’s API to connect with your customer relationship management (CRM) tool. Another option is to connect an online contact or donation form to the API. This way, anyone who fills out a form can be screened on the fly. This allows you to show each prospect different information on the subsequent web pages or alert you if they are a strong match.
Interested in learning about the spending trends and lifestyle attributes of millennial millionaires? Download A Look at Wealth 2019.
Doing a wealth screen can be a game changer for your organization.
Here’s another common use of using wealth screening. It’s quite likely that at least one of your best donors or customers is on the board of an organization. A wealth screen can reveal which boards or organizations they are involved with.
You can then quickly get a list of the other board members and run a wealth screen on them, too. You might find that there are some who match your ideal prospect profile. To bring in new qualified prospects into your pool, all you have to do is reach out to your current donor or customer. Ask them for a warm introduction to their fellow board members.
Wealth screening provides insights like this that allow you to connect to the right people well beyond your network.
Wealth screening can be taken to a much higher level. You can create a model of your ideal prospect profile to find new prospects who match. This is known as predictive prospecting.
Using the concept of look-alike modeling, WealthEngine data scientists create a profile of your best prospects. Next, they match it against WealthEngine’s database of 250 million contacts. This generates a list of brand new prospects that look just like your best ones. Finding new people you should talk to becomes easy when you use a look-alike model. It takes the guess work out of prospect research. By implementing this data-driven process, you save a tremendous amount of time and money in finding your next big donors or customers.
If you pursue contacts without knowing both their capacity and propensity, you waste your precious time and marketing budget. Wealth screening and modeling saves you time, money and can help generate millions of dollars in more revenue.
A Grateful Patient Program can help you buy equipment to save more lives, fund new labs, or even pay for a canine program that provides pet therapy to patients. It can be the funding bridge that allows you to help more patients than you can through traditional hospital revenues.