Retail Marketing: Using Technology to Drive Personalization at Scale

retail marketing

We’ve heard that personalization should be at the core of retail marketing strategy. Does this mean that you send discounts on jeans to previous customers who bought jeans? Yes, that’s a part of it, but there is so much more. Every touchpoint needs to make the customer feel like they are having a one-on-one conversation with you. However, from a business standpoint, your strategy needs to be scalable as well. The question then becomes about balancing scalability with that personal touch.

Bob Ghafouri, Senior Managing Director, Founder, Bloom by Accenture recently addressed this question and others at WE Prosper Summit.

How Can You Scale Personalization?

Platforms are disrupting every industry. Retail marketing is no different. In fact, platforms can enable you to achieve personalization at scale. They are able to do this by focusing on three elements:

  1. Experience Disruption- creating a frictionless customer experience that makes everyone pivot. Eg: AirBnB made it so convenient to find the comfort of home in a new city that people started to prefer them to hotels for certain types of trips.
  2. Business Model Disruption- changing the value chain or existing business models to find an advantage. Eg: Dollar Shave Club cut out other players in the value chain and went direct to consumer. By doing this, they were able to keep costs very low and provide value and convenience to their customers.
  3. Technological Disruption- when technology enables you to take leaps, speed up innovation or benefit from convenience. Eg: Amazon’s Redshift platform- a new business could use this to launch themselves into the market in a matter of days

These disruptions all allow retail marketers to personalize their offerings. For instance, experiences can be curated to meet customer preferences. Similarly, value and/or convenience can be factored in based on what is most important to each customer segment. With the help of technology, these offerings can remain customized but can be scaled as businesses grow.

What do Retail Customers Want?

When it comes to retail, customers know what they want. They want personalization & control. This means that they don’t just want to be offered a multitude of choices. Options generated by retail marketing should cater to their preferences. Furthermore, they want to be in control of their journey and the information you hold about them. The statistics speak for themselves:

  • 45% of consumers left a website due to being overwhelmed by too many options
  • 82% of customers are willing to share data- as long as there is transparency, control, and service
  • 79% of consumers have never felt a brand was too personal or invasive
  • 81% of consumers will shop more if you recognize, remember, and make relevant recommendations
  • 75% of consumers want to control their journey

If you’re in retail marketing, the data above shows you that listening to your customers is a large part of the exercise. Let them educate you on how best to serve them.

How can Retail Marketing Address Customer Wants and Needs?

Think service design: a dynamic service experience is critical to getting 1:1 personalization. Customer experience should be designed in such a way that every touchpoint must feel personal. Focus on three elements to develop this design:

personalization

Personalized Shopping: Stalking is Not Personalization

You have several kinds of data at your organization. You don’t have to track your customer’s every move or stalk them in order to get insights. Personalized shopping can be driven by combining different types of data- both your own and that acquired from third parties.

You can use transactional or historical data + shared intent by the customer + insights from machine learning that can provide inferred intent. These three combined can provide actionable insights and be powerful to drive personalization. Further, your communication can be more proactive through these.

For example, your customer may have bought entry-level luxury handbags before. You then notice that they add a high-end luxury bag to their cart and abandon it there for some time. This shows you their intent or preparedness to spend on a big-ticket item. Using data science, you can analyze similar patterns among other customers to predict the value of their next purchase or even predict the likelihood of a big-ticket purchase on their next transaction.

When you have this kind of insight, you can send them tailored offers- maybe a personalized shopping experience in-store or a promotion offered specifically around high-end handbags.

Personalized Merchandising: Profiling is Not Personalization

Data and machine learning are powerful tools in retail marketing, of course. Data-driven segmentation can also help you refine personalization. However, even the best algorithm may not be enough to create something highly personalized. Applying human intuition on a digital platform is what will get you there.

For instance, let’s consider the previous example. Your predictive model indicated that the customer is ready for a luxury purchase in their next transaction. However, as a seasoned retail marketing professional, you may realize that the bag remaining in their cart is a sign. Your instinct can take you from prediction to anticipation. Prediction is about retailers being in control, but anticipation puts the control back in the hands of the customer.  In this case, your experience tells you that the customer is hesitant about making such a big decision.

Knowing how likely they are to make a purchase empowers you to approach them with personalized merchandising. You may send them a video about craftsmanship on the brand of handbags they are interested in. Thus, you showcase the value of the product to them. On the other hand, you may realize that they are ready to make a luxury purchase but maybe the handbag is a bigger commitment than they are ready for. In this instance, personalization could be in the form of promotions on belts, wallets or other smaller items from the same brand.

Personalized Advisor: Chatbots are Not Personalization

Retail consumers seek experts just like anybody else. They are looking for personalization in the form of advice. While chatbots are a nifty solution to interact with customers at scale, they cannot replace real advice.

In the spectrum of virtual to real experts, there are three archetypes that are typically used in retail marketing.

Retail marketers are pivoting towards 1:1 personalized orchestration engines. These are not just about sharing advice but also listening to your consumers.

For instance, when a customer is shopping online your recommendation engine may be showing them similar products. However, customers seek advice more than recommendations. You can drive personalization by showing them how to pair the item they are looking at with others or how to style it for different occasions based on their lifestyle.

You could also offer advice in the form of answering frequently asked questions about the product. This can go beyond product specs to show how the product functions in different settings, how durable it can be, etc.

Thus, you can build personalization into the entire customer journey. By listening as much as recommending, retail marketers can ensure that customers control their own journeys.

Top 4 Retail Marketing Takeaways:

Here are four top takeaways from Bob’s talk on personalization in retail marketing.

  1. Consumers don’t mind that you have data on them. In fact, they preferred to be recognized and offered relevant offers. But, they want transparency and control over the data.
  2. Combine your knowledge of your customers with data science to gain insights.
  3. Become proactive in your communications, open yourself up to listening to your customers. Go from predicting customer behavior to anticipating it.
  4. Retail experiences need to be personalized in every step of the customer journey. In order to achieve this in a meaningful way, you need to combine technology and human instinct.

Catch a Recap of Making it Personal

Watch the full recap of Making it Personal, presented at WE Prosper Summit 2019.

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Donor-Advised Funds: How Your Nonprofit Can Gain Untapped Gifts

Donor Advised Funds

Donor-Advised Funds (DAFs) may seem out of reach, but reports show that they are growing at a rapid rate. Furthermore, DAFs have been making a significant impact on giving. For instance, a donor recently found out that his DAF had the ability to support early education impacting 80 children. The fund that went out to support this cause was in the ballpark of $170,000. This was possible through appreciated securities and growth of the fund in their portfolio.

If your nonprofit has not been leveraging Donor-Advised Funds to supplement your fundraising strategies, following our recommended best practices can help you get started. Make sure you get a copy of our best practices guide at the end of this article.

But first, let’s start with the basics.

What is a Donor-Advised Fund?

Amy Pirozzolo, Head of Marketing, Fidelity Charitable says, “A donor advised fund is like having a set-aside investment account just for your charitable giving.”

DAFs are a way for donors to make a charitable contribution and get their tax deduction immediately. However, funds, securities, and assets are held by a public charity. The donor can then recommend grants to go out to charities from these assets.

Three Key Benefits of Using DAFs

  1. The nature of these funds allows donors to be more thoughtful about how they allocate resources to charities. It takes the time pressure off when they have had a financial windfall. They can establish the DAF right away and receive a tax deduction. But, they still have time to think about how best to use these funds.
    In the words of a current DAF donor, these funds allow you to put 98% of the focus on giving and 2% on the implementation/technicalities of it.
  2. Assets can appreciate over time allowing charities to benefit from a higher value contribution.
  3. DAFs are also growing at an exponential rate when compared to the growth of overall giving. For example, giving overall grew 5% in 2017 vs DAFs that grew by 20% in the same period.

Profile of a Typical Donor

  1. The median age is 65. However, giving can begin as early as 55.
  2. 79% of them also volunteer their time with their money
  3. 68% have said that DAF is right for them because they have the money now but haven’t thought about how/where to give yet
  4. 76% give appreciated assets (privately held assets or publically traded stock)
  5. 76% give because it is an investment growth of charitable assets
  6. 27% give because they had a financial windfall

Before we get to our best practice recommendations, let’s understand some commonly held misconceptions about Donor-Advised Funds.

Donor-Advised Fund Myths- What is actually true?

 

Myth

Fact

DAF donors are typically wealthy The average DAF donor has a bank balance of $17,000
DAF contributions are always major gifts Gifts have a wide range, but the average is about $4000
Money doesn’t move when it ends up in a Donor-Advised Fund On average 37% of funds go to charities in year 1, 74% within 5 years and 88% within 10 years
DAFs are limited in number Over 1000 charities have DAF programs

 

5 Best Practices for Nonprofits to Get These Funds

Learn how best to fish in your own pond. Identify prospects for DAF giving from within your donor base.

Download our best practices guide here–>

How to Personalize Engagement: 10 Key Takeaways From WE Prosper Summit 2019

The power of personalized engagement is undeniable. WealthEngine’s WE Prosper Summit 2019 brought together industry experts. They discussed the importance of personalization across industries. Speakers explored how data, AI/ML, and other technology drive tailored outreach and positive social impact.

Experts at the WE Prosper Summit 2019 spoke from their varied perspectives. From those talks, we found that the following key principles exist across industries:

Personalized Engagement can Deliver Exponential ROI

1.  Personalized Engagement is more than just a trending topic.

The WE Prosper Summit confirmed that personalization is more than just a buzzword. Speakers confirmed that it is at the epicenter of all successful fundraising and marketing.

For fundraisers, personalization could be the difference between receiving $50 from a donor or $50,000. For marketers, it enables them to stay informed on customer life stages. So, this means you can predict purchases and keep customers, thereby increasing LTV.

2. There is a fine line between personalized and creepy.

When you completely rely on technology to drive personalization, you may end up crossing a fine line. Stalking, profiling, and chatbots aren’t effective methods in learning more about your clients. In short, organizations need to find a way to make communication feel personal without losing sight of scalability.

This leads us to our next set of takeaways…

Technology Needs to be Balanced with the Human Touch

3. Data and AI are making huge strides in both the nonprofit world and in marketing.

AI is always exploring the frontier of what is possible. It is a great tool to test and refine your personalized engagement strategy. So, when data is combined with machine learning, it can predict behavior. This can help you be proactive in your outreach.

4. The value of the human touch cannot be undervalued.

It’s important to not be overly-reliant on technology when you’re personalizing your outreach. There are several cases where technology has been used as a substitute for a personal touch. Your donors and customers want to be engaged in authentic ways. They must sense transparency and relevancy in your communications with them. So, you can achieve this by balancing scalability with the human touch.

5. Your data strategy cannot just be to collect lots of it.

Basically, volume does not equal value.

Mathematician, Clive Humby has said that “Data is like oil…”

So, you have to refine data and process it correctly for it to be valuable. Moreover, data collection and insights must add value to your overall business strategy.

6. Combine your data with data from other sources to personalize engagement.

Your data is unique to you but you can increase it’s value to supplementing it with information from other sources. For instance, WealthEngine customers have access to wealth, demographic, lifestyle, and affinity data. These help them gain a more holistic view of their contacts. Similarly, data and machine learning can generate unique insights.

Combining your data with machine learning technology can generate insights that no one else has. These insights can then help you drive personalized engagement. Furthermore, you can use this technology to refine your analysis over time.

7. AI is not out of reach for nonprofits.

By understanding the technology, you can reduce repetitive tasks. Additionally, you can test your strategy and learn from it so that you are constantly refining your outreach.

Impact is Going to be the Next Industrial Revolution

8. Impact is going to affect all organizations.

All stakeholders have an interest in corporate social responsibility. Thus, usher corporations towards public good.

9. Millennials are going to be major influencers of the economy.

They will buy from brands, work at companies, and give to causes that are closely aligned with their principles. Thus, understanding them will be key to driving personalized engagement.

10. Donor-Advised Funds (DAFs) can add to fundraising bottom lines.

DAFs have been growing at a rate of 20%, almost 4X the rate of overall giving. With this being the case, all nonprofits have to do is facilitate receiving funds through them.

Learn More about WE Prosper Summit 2019- The Power of Personalized Engagement

Interested in learning more about what our industry experts had to say? Learn more about the latest trends in prospect engagement.

 

Identity Resolution For Best Match Rates & Unique Pre-Built Profiles

identity resolution

As the proliferation of data continues, identity resolution or entity resolution becomes a topic of greater importance. You may be wondering how such a specific technicality may affect your business. Our in-house expert, Glen Ireland actually answers that question and more on our podcast. Let’s begin with the basics.

Listen to the full podcast here:

What is Identity Resolution?

Identity resolution is the process of matching data from multiple sources with one entity. It can also be referred to more generally as entity
resolution. Basically, when several data points are matched with a person and the association is confirmed, it is identity resolution.

For example, let’s say there’s a contact named Eric Smith in your database. You may find out from another data source that Eric Smith has a net worth of $10M. The problem is that there could be ten different people with the name Eric Smith among your contacts. Identity resolution comes in when you need to find the right one to associate the net worth with.

Businesses Can Also Face Identity Loss

Not only does entity resolution affect people, but it also affects organizations. Even if your organization deals with other businesses, identity resolution could become important for you.

For example, your system may have stored IBM as IBM, International Business Machine, and as IBM Corp. When you add new data, you may add each data point to a different entity. In this case, your data will not be able to paint a holistic picture of the entity for you.

In these instances, computers cannot make judgment calls. Human intervention may be needed. Of course, when you try to achieve entity resolution at scale, you can do this through algorithms.

Entity Resolution & Wealth Data Analytics

When it comes to your wealth data analytics, identity resolution becomes paramount. Let’s consider the case of WealthEngine. Identity resolution enables us to pre-form profiles about every adult in the US. These pre-
formed profiles allow WealthEngine to offer solutions like WE Prospect, and WE Analyze.

Furthermore, with entity resolution, you can perform a nationwide quick search. This means you can look up any individual adult in the US or create segments in the WealthEngine database.

Identity resolution lets WealthEngine procure data from several different data sources. So, each data source has its own unique identifier for each person. WealthEngine can then match all these data sources through entity resolution. This helps us build pre-formed profiles and to update and enrich them over time.

WealthEngine invests millions in acquiring high-quality data from different sources. This means you can learn more and more about Eric Smith on your contacts list with WealthEngine. This includes demographics, lifestyle, behavior, interests, and affinities. Our algorithms and data science help make sure that you have up to date and extensive information to work with.

Identity Resolution to Match Vendor & Customer Data

So, how do you match data from different sources and vendors? Although this is a complex process, two basic techniques can be used. For instance, the main attributes we use to match entities are their name and primary address.

A best practice for identity resolution is standardizing the format for names. To illustrate, turn nicknames into formal names, remove any punctuation from names, etc. You may also want to standardize addresses by reformatting them. The format should match deliverable USPS addresses. Those are two basic things that can be done to enable entity resolution.

There are also other sophisticated techniques to accommodate misspellings. We use some of these advanced practices at WealthEngine. For example, a vendor might send a record with a name that’s missing one character. Similarly, there could be a street name that’s missing two characters. In these instances, we use something called edit distance algorithms. We may also use this and similar techniques to accommodate misspellings in first names, last names, or street names when ingesting vendor data.

Advanced Technology for Higher Match Rates

The above were general best practices, but the process becomes complex at scale. Furthermore, as you ingest data from more sources, you need more sophisticated data science to ensure accuracy. WealthEngine’s industry-leading technology means that our clients can enjoy up to 90% match rates.

In fact, clients have confirmed that other analytics solutions offer about 30-60% while WealthEngine can get them to 90%. This is because WealthEngine has spent 20 years coming up with sophisticated techniques beyond the basics.  For example, we can also use attributes like spouse name or business name to increase that metric.

This is important because both husband and wife can make a decision on something. If you’re targeting a specific individual, you may want to bear in mind that the spouse might actually be the decision-maker. These could be decisions about a donation, about buying a particular product, or using a certain financial services firm. With this being the case, it’s very important to have identity resolution be as accurate as possible.

What Happens When There Is No Match

If a record from a vendor cannot be matched to a profile, WealthEngine has to decide whether or not to create a new profile. If the record coming in from the vendor is complete enough, and it seems like a person that is not already in the database, we create a new profile. For instance, there are something like 10,000 17-year-olds turning 18 every day. They would all be eligible for being loaded into the WealthEngine database.

In other situations, a customer record may match multiple profiles. In this instance of entity resolution, let’s say you add some extra pieces of information to WealthEngine. This may cause one customer record to match multiple WealthEngine profiles. Then, WealthEngine appends information from all matching profiles to the customer record to enrich it as much as possible.

Does this work?

Yes, because  WealthEngine sometimes has more than one profile per person. The reason behind this is that we want to shy away from over-merging. This means, you never want to use identity resolution to combine two different people.  WealthEngine tends to err on the side of what’s called under-merging, where one person is represented by multiple profiles in the WealthEngine database. In fact, competing solutions may have greater inaccuracy because of this.

How You Can Benefit From Identity Resolution

Identity resolution ultimately increases the accuracy of information for customers. This means you can simply search for a person and see all their information compiled into a profile. These profiles are built using data from several different sources. Thus, this presents itself as a convenience for you.

Secondly, having reliable entity resolution in place means you get higher match rates. For instance, WealthEngine match rates are very high, at about 90%. So, when you find out that Eric Smith’s net worth is $10M, you can be sure that it is the right person.

Furthermore, you can keep on enriching your contacts’ profiles with more information. With WealthEngine, the enrichment is automated in most cases. There is a small percentage of data that WealthEngine cannot match. However, with a feature called Find More in WealthEngine9, even this has a solution.

If your customer record does not match a WealthEngine profile, we will still store that record in your My Profiles tab. You can then click into the profile and do a manual identity resolution. First, use Quick Search to find what you believe is a match. Then use Find More to merge it into the uploaded record. Doing this, you can increase the match rate up to 100%. No other wealth intelligence solution can help you do this.

Increase Your Match Rate to 100% Starting Today

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Black Friday Marketing Campaigns for Luxury Retail

black friday marketing campaign

The holiday season is fast approaching. Now is the optimal time for luxury retailers to gear up for the busiest season of the year. Your Black Friday marketing campaigns need to be data-driven in order to ensure success. Before we analyze the holiday season and provide recommendations, let’s address a question that might be on your mind:

Do luxury brands do Black Friday?

The holiday shopping season, especially Black Friday, can be the biggest time of the year for retail. With this being the case, luxury retail stands to benefit from the general willingness to spend.

Of course, there is the question of whether offering luxury goods on sale dilutes your brand. But, when it comes to your Black Friday marketing campaigns, there are ways for you to participate without affecting your overall brand image. Many high-fashion labels such as Prada and Fendi participate in Black Friday, as Bloomberg reports. 

Now, let’s explore the ways brands approach Black Friday internet marketing or digital marketing strategy.

Your Black Friday Marketing Campaigns

There are several ways for luxury retailers to get involved during the holiday shopping season. In general, all retail categories see an uptick during this time of year, including luxury.

Even luxury buyers enjoy scoring a great deal or an exclusive find. Thus, as a luxury retailer, you can create excitement around Black Friday without tarnishing your brand.

Your digital campaigns can be focused on value-adds that are specific to the season. These don’t necessarily mean offering unreasonable discounts on large volumes of products. A well-timed marketing campaign can promote your holiday idea in a way that is reflective of your brand. The promotion can generate both buzz around the season and the exclusivity of a certain deal.

How best can you do this? Let’s consider a few examples from past holiday seasons.

Black Friday Marketing Examples for Luxury Retail

Many luxury retailers have taken advantage of Black Friday in the past. For instance, although Louis Vuitton’s flagship store did not feature any discounts, according to Business of Fashion, they did open their store earlier to encourage Black Friday shoppers to come in.

Another example is Bergdorf Goodman’s holiday marketing strategy. They offered Saint Laurent handbags at 40% off. Even though this is a significant discount, they limited it by offering it on a specific item. Other labels and products were sold at regular prices.

Masstige brands such as Michael Kors or Ralph Lauren have offered deep discounts of up to 75% off during this season. They can bounce back to regular prices after Black Friday without altering the value of their products or their overall brand.

Black Friday Marketing Ideas: In-Store and Online

Let’s consider some Black Friday marketing campaign ideas that you can implement and promote:

1. Deep discounts on limited pieces:

Whether in-store or online, you can manage the number or types of discounts you have. For instance, you can offer 75% off on fur coats, but limit the number of coats. Let’s say you offer 10 pieces per retail store and 50 online. Similarly, you can offer a discount on very specific items and maintain regular prices for all other products.

2. Longer store hours:

Black Friday excitement can also be created by opening your store early or keeping it open for longer hours. By doing this, you can attract shoppers who are out early or late without needing to offer major discounts.

3. Limited edition Black Friday collectibles:

Your Black Friday offer could be on a new collection or limited edition line of luxury products at full price. You can offer an early and exclusive preview of next season’s goods to Black Friday shoppers. This offers you another alternative to make the most of the season.

4. Discounted shopping during a short window: 

When you do offer a traditional Black Friday sale, you can do so in a short window of time. For instance, if your sale prices are only available 6 am to 9 am, early birds will get in to enjoy the deals.  This also motivates and gives other shoppers incentive to shop earlier. The buzz from your campaign will last the rest of the day even when you roll back to full price.

5. Curate and exclusive experience:

Other alternatives revolve around creating a memorable customer experience for in-store shoppers. For instance, you can offer free personal shopper service on this day. Similarly, you could serve champagne in-store, offer double reward points, or free personalization on products.

This could also be held as an exclusive, invite-only experience for your most loyal customers.

6. Discounts in partner retail stores: 

As a luxury brand, you may not want to reduce prices in your flagship store or your own retail store. However, you can choose to offer discounts through your partner retailers or similar channels. For instance, luxury department stores or even off-retail stores can offer selective discounts on your products.

How to Use Data to Implement Your Marketing Campaigns

As we noted earlier, data-driven Black Friday campaigns tend to see more success. Learn more about wealth data implementation for Black Friday success by reading our article.

Essentially, when you conduct wealth screening on your contacts, you learn more about them. Analyzing your screening data can tell you what makes your audience unique. You can then use these insights to deliver personalized and effective campaigns.

Personalize Your Black Friday Marketing Campaigns

Use wealth screening and analytics to personalize your campaigns.

Learn More About Millionaire Buyers

Download a free copy of our 2019 U.S Millionaire Report today.

Financial Advisor: Prospecting Ideas Using Data Modeling

financial advisor prospecting ideas

If you are a financial advisor or a wealth manager, then you know that the financial services landscape is highly dynamic. Financial services trends and regulations change frequently.  Marketing in financial services generally has a long conversion process due to the sensitive nature of the information that clients have to share with their wealth managers. Financial advisor prospecting ideas and activities, therefore, have to constantly be refreshed.

Data-Driven Prospecting Ideas for Financial Advisors & Wealth Managers

Think about how you typically market a financial services company. Prospecting ideas for financial advisors generally means cold calling or relying on referrals. These approaches are not without their challenges or issues. Referrals, of course, can be an effective way to find new clients. However, even your referral strategy can become more precise when driven by data.

In fact, it can be even more beneficial to begin with data. You may already have plenty of it. But, it may be fragmented and uninsightful in its present state.

Wealth Profiles

Your data needs to be housed in a centralized database, collected and organized into wealth profiles. Even if you are an individual financial advisor or wealth manager, organizing your data can be the first step in gaining actionable insights.

prospecting ideas for financial advisors

Wealth Indicators

Take wealth indicators for example. They can be a great starting point in understanding where the greatest potential lies in your database. Furthermore, you can combine wealth indicators with demographic, lifestyle, interest, and affinity data. Doing this gives you a holistic picture of who your contacts are.

For instance, you may find two contacts who are both 55 and have a net worth of $8M. When you perform a wealth screening, you might see that prospect A is interested in golf, whereas prospect B is interested in opera. Imagine you now approach them with a richer image of who they are. You will be more likely to have an engaging conversation with them.

Other data-driven,  prospecting activities for financial services involve deeper analysis. Analysis and modeling can further elevate your prospecting ideas. Let’s explore how.

Data & Modeling: Using Deeper Analysis to Drive Prospecting Activities for Financial Advisors

Leverage Your Current Customers

 1. A Look-Alike Model

You can leverage your existing contacts through modeling. A look-alike model can analyze your best customers and look for patterns among them. These patterns can then drive your prospecting activities.

For example, the model may tell you that all your top clients have a net worth between $1-3M. That a large majority of them do not have children and that they prefer adventure travel. Geared with this persona of an ideal customer,  you can tailor your prospecting ideas to really speak to someone like this.

2. Inner Circle

Although this technically is not a model, WealthEngine’s inner circle feature can make a big difference to your referral marketing. Basing your financial services prospecting on data from this feature can give you a sharper focus. Your current customers can again be a great source for you to meet great new customers. A warm introduction from your client to his colleague or HNW friend can automatically generate trust.

Let Your Prospecting Ideas Get Predictive With Modeling

You can use wealth models to predict specific outcomes. Predictive models build a specific formula for your client base. The model then uses this formula to analyze your database. Everyone on it will be scored against the formula and divided into segments. These segments will, therefore, help you prioritize your prospecting activities. A formulaic analysis, like this, can help you with the following:

1.  Customer Acquisition

This model can help you identify a completely new customer group. The group will be a high-potential segment as it will have properties that are similar to your existing customers.

2. Conversion

In this case, you can identify customers who were successfully converted to higher spending. We will build a model that can understand these customers. The model can then pick out other customers who can be upgraded.

3. Upsell

The upsell model builds a formula to predict upgrades or complimentary services. Through this, you can identify customers who can be approached with other offers.

4. Retention

For any financial advisor or wealth manager, customer churn can be a major concern. Using the retention model helps you predict whether a customer will churn or not.

5. Customer Lifetime Value (LTV)

This model can predict the lifetime value of your customers. This way, you can focus your attention on those relationships that have long-term potential. How does this work?

The model uses your customers’ transaction history. Doing this enables it to predict churn. Further, you can also forecast the number of future transactions, the value of future transactions and even the next transaction amount. This type of analysis is possible using the latest machine learning techniques.

Therefore, data-driven, financial advisor prospecting ideas lead to more efficient prospecting activities.

Put Your Prospecting Ideas in Practice Today

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How to Market a Financial Services Company- Strategy for CEOs & CMOs

How to market a financial services company

Marketing a financial services business can often be complex due to the nature of the products and services. Customer decision cycles tend to be longer than other retail products. Moreover, a customer needs a high degree of trust to engage with a brand or organization. With this being the case, personalization becomes key. If you have wondered how to market a financial services company, the answer lies in building long-term relationships.

If you have your own firm or are a high-level executive at your financial services company, keep reading to learn more.

As a leader in financial services, you may not be concerned about marketing on a granular level. You may have a team that implements financial services marketing for you. However, knowing the overarching strategy of how to market a financial services company could prove beneficial in two ways: Firstly, you will weave marketing into your overall business strategy. Second, you will be able to collaborate more closely with your CMO and marketing team.

The next step seems simple- find wealthy clients. To do this, however, you need to start with the right kind of data. Furthermore, you will need the right strategy to build trust and establish long-term relationships with these individuals. You’ll also need to stand out from your competition. Let’s examine what challenges might stand in your way.

Challenges in the Marketing of Financial Services

In a dynamic industry such as yours, trends are constantly shifting. Keeping up with them can pose several issues:

1. Digitization disrupts the industry, threatening customer lifetime value (LTV).

2.  FinTech companies are set to outrun traditional companies in the sector.

3. The volume of data has grown exponentially, posing challenges for analysts.

4. Data is stored on unsecured platforms and there rise is a marked rise of cyberattacks.

5. The growth of AI/ML adds pressure to balance automation and the human touch.

If you’re interested in learning more about these financial services issues, read our article on the subject.

Marketing a Financial Services Business

Before you think about how to market financial products and services, it is important to understand how to market your financial services business as a whole.

This begins with having the right brand strategy.  Let’s examine how you can build an effective brand for your financial services company. Follow these 5 steps:

1. Understand Your Audience:

In the financial services sector, your customers and their needs can be quite varied. When you analyze your database, you can understand who your customers are. For instance, WE Analyze can study your database and identify patterns among your customers. You could find out, for example, that you primarily have two types of customers- baby boomer men and millennial women. With this insight, you can create a brand that speaks strongly to both customers. You might even decide to create different product lines with different identities to serve these two diverse groups.

2. Talk to Your Customers:

Conduct a survey among major groups that you have identified. This survey should tell you more about your customers’ needs and preferences. This primary research, combined with other industry reports, can tell you how to position yourself best.

3. Build Awareness:

You have created a brand identity that best suits your story and your audience. Now, it is time to ensure that the right people become aware of your story. You need to curate imagery, typeface, language, and media channels that all reflect your identity. Use owned and paid media channels to promote your story to your audience. Ensure that your brand’s personality stands out from your competitors. You may, for instance, need to adopt a luxurious and business-like image to appeal to major corporate clients/executives. On the contrary, your tone and imagery may need to be more personal and relatable if you are appealing primarily to millennial women.

4. Refine Your Message:

As your awareness campaigns see results, you will learn more about which aspects worked well and what didn’t. As you analyze, you can continue to refine your messaging until you ensure that it resonates with your audience.

5. Find More Customers Like Your Best Ones: 

When you know what kind of person engages with your brand and your story, it becomes easier for you to find more people like them. In fact, WE Analyze can generate a look-alike model. The model can help you go through your database and find your best customers.

Segmentation of the Financial Services Market

Building your brand is the first step. But it is not a one and done kind of activity.  The process is ongoing. So, the next step in the how to market a financial services company guide is refined segmentation. This is especially important as your audience’s life stages change or your market segments shift. Here are 3 steps for effective segmentation:

1. Identify Your Company’s Strengths:

Your story is always unique to you. This is a strength that your brand can leverage. Ensure that your brand is authentic to your company’s story and its culture. Study the market to see where you best fit in. For example, maybe most advisory services are directed at older customers. Your niche could be offering a tech-savvy, relatable wealth management solution for millennial millionaires. Furthermore, this may be a great fit for you as your company has a lot of younger executives and wealth managers.

2. Segment Customers Based on Interests:

You will segment your audience based on demographics. This is definitely a great foundational step in how to market your financial services company. You can go further by segmenting them based on their interests. You may find needs that are similar across different demographic groups. This type of segmentation can help you expand your business into various financial services sectors such as retail banking, home loans, advisory, risk management, etc.

Wealth screening can help you gain great insights into your customers’ lifestyle and interests. Screening your database regularly helps you stay up to date as customer life stages change.

3. Address Gaps in the Financial Services Market

You cannot be everything to everyone. This is usually true of most businesses. But in the financial services products and services, you may find that you have more leeway. Because trust is a major factor when choosing a financial services company, you may find that customers are willing to stick with you for all their needs.

This may trickle down further into their sphere of influence or as we like to call it, their inner circle. You need to begin with a strong brand identity and an authentic story. With this as a solid foundation, you can then grow your business to offer a variety of financial services products and services. These can cater to generations of customers.

Your expansion strategy can rely on identifying gaps in the market. Find niches of services that are unavailable for certain groups or segments. This may be microloans in large metro areas for example.

How to Market Financial Services Products & Services

Segmentation and identifying gaps can serve as your guide for expanding your business.

When it comes to the marketing of financial services products and services, trust is key. Before you try to expand your business, you need to ensure that your brand has a solid foundation. When you offer a minimal range of products and services, but your customer experience is par excellence, you are working on building long-term relationships with your customers.

These customers who trust you and expect to be served well by you will rely on you for more services with time. By screening and analyzing your audience regularly, you keep up with changes in their needs and preferences. Doing so can help you offer personalized products and services to them.

Furthermore, you can use wealth data ratings and scores to identify the right customers for the right set of products. For instance, WealthEngine’s Propensity to Spend (P2S) score can help you understand a person’s likelihood to spend or save.

how to market financial services products and services

Additionally, you can also run wealth models to answer specific marketing questions. For instance, you could build a model to find out who among your customers is most likely to invest in a holiday home. The model can automatically scan your entire database and identify the top 10% of people who are most likely to do this.

Thus, when you are looking to expand into a new product or service, a model can indicate whether this would be a prudent path to growth.

How to Grow Your Book of Business

Finally, we’ll leave you with 3 tools that can help you grow your financial services company:

1. Use wealth signals to personalize your offerings:

2. Leverage Inner Circle:

Identify connections of your current or most influential clients to build a referral business. The tool identifies prospective clients with a connection already to your firm. Thus, you can increase the conversion rate of new clients. Relying on your referral pipeline with prospective clients already connected to your firm.

3. Integrate Through API:

API integration can not only bring you wealth insights right to your CRM, but also provide you with real-time insights.

Take advantage of all these tools within one convenient platform to market your financial services business.

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Marketing Strategy For Luxury Real Estate: Find Your Next HNWI Buyer

marketing strategy for luxury real estate

Luxury real estate is a growing niche in an uncertain market according to Coldwell Banker and WealthEngine’s State of Luxury report. Marketing strategy for luxury real estate needs to be as diversified as your clientele.  Understand market trends and leverage data to refine your strategy. In doing so, you can increase your conversion rate while lowering costs.

Who is Your Next Millionaire Buyer?

Your next millionaire buyer could already be in your database. Understand UHNWIs and HNWIs who are interested in their next luxury real estate investment. Look for these signs in order to deliver results:

  1. Luxury today is defined by hyper-personalizaton. HNWIs are investing in properties that now feature everything from personal recording studios to in-house art galleries.
  2. Interest rates and price stabilization make luxury real estate less appealing to investors.
  3. Finally, UHNWIs decide based on value, not price. So even when the market indicates a downturn, offerings that are unique and personalized can be seen as highly valuable.

How Your Marketing Strategy For Luxury Real Estate Can Mold Itself to These UNHWIs

The trends described above mean that you need to offer a unique property to each prospect. Further, it also means that you need a clear understanding of what they value. Here is how you can shape your marketing accordingly.

Find Specific Buyers for Unique Homes

Now that you have understood the importance of personalization, you need to do a deep-dive into your database. This should show you what features and specifications each prospect values.

In other words, no two luxury home buyers are the same. You can reduce your time prospecting for your next sale by segmenting your audience. Customer segmentation needs to go beyond demographics. WealthEngine can segment your lead list based on lifestyle, interests, and affinities.

For instance, you can target yacht owners to lead them to their next waterfront beach home. Similarly, your marketing strategy could focus on investors who are looking to expand their portfolio. You can then reach them via a direct mail or email campaign based on their preferences.

Match Buyers With the Right Locations

Location is critical in luxury real estate selling. Therefore, you can use the geographic characteristics of your listing to identify new qualified prospects. These prospects should be the top segment to target in your marketing efforts.

To illustrate, WealthEngine can help you identify key million-dollar neighborhoods.

US richest zipcodes

You can go a step further to learn where your specific top segments live. Then, you can use this data to create brand recognition through marketing efforts in these areas.

Take Out the Guesswork- Use Data to Drive Your Marketing Strategy

Your lead list is long, and your time is short. Imagine, for instance, if you didn’t have to guess someone’s net worth based on their zipcode or car?

Understanding real estate buyers beyond their zip code is important. A holistic prospect list should show you exactly who to focus on through key wealth indicators. You would then be able to use this data to find the right potential buyers for your next luxury property.

WealthEngine data includes 250+ attributes that paint a descriptive picture of your prospects.  These indicators include estimated net worth, total assets, investments, and cash on hand. Moreover, wealth indicators are combined with lifestyle, interest, and affinity data to create a 360-degree view of prospects.

Wealth Insights for Luxury Real Estate Marketing

Use wealth and lifestyle insights to discover more about your potential buyers. You can then leverage these insights to personalize your marketing and sales efforts. Highly personalized campaigns drive engagement and increase customer lifetime value (LTV).

How WealthEngine Empowers Marketing Strategies for Luxury Real Estate.

1. Screen customers and prospects- Learn more about your existing customers and your leads. WE profiles can provide a rich canvas of information to help you fill the gaps. Get access to data on net worth, income, assets, real estate, stock holding. Further, data includes charitable contributions and actual business and personal contact information.

2. Analyze your database- WE Analyze can create a descriptive, look-alike model. This means that you have the means to understand what makes your customers unique. You may find that luxury homebuyers in Miami differ from those in LA. This will help you understand what makes them tick. You can then create campaigns that resonate in each market.

3. Model your data for actionable insights- Go beyond a descriptive image of your customers with data modeling. WealthEngine’s models can segment your leads through Big Data analytics. This means the model can segment your pipeline to show you the top 10% of leads. The model helps you answer a specific sales or marketing question. For example, you could identify the top 10% of leads for vacation home purchases. It could be the top 10% of leads for something specific such as water-front property in Long Island City, etc.

4. Find new prospects– Your customers are a treasure trove of insights. WealthEngine’s analysis can help you understand what makes them unique in each market. You can use these insights to find new leads who look just like them. The greater the similarity, the more likely they are to exhibit the same behavior.

Plan Your Personalized Luxury Campaign

WealthEngine houses 250M WE Profiles and 125M households. This helps you create ultra- segmented audiences. When you look for new prospects, you can add various filters to refine your segmentation. Niche segmentation then enables personalized communications. Personalization is what will lead to long-term engagement and increased LTV.

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Donor Segmentation: How Models Can Drive Personalized Campaigns

customer segmentation models

Fundraising success comes down to well-timed and optimized asks. Donor segmentation can help you find the best prospects for your campaigns. Yet, segmentation is not an end in itself. Its impact grows when combined with donor segmentation models. These models can also increase personalization and engagement.

What is Donor Segmentation and How to Segment Donors

Donor Segmentation is the process of breaking donors into categories. For example, you can categorize them by their ability to give. Donor segmentation fundraising is different for every organization. To illustrate, a nonprofit could segment donors based on past giving. Yet another could choose to segment by wealth brackets.

Donor Segmentation Analysis

Segmentation analysis helps you find macro patterns in your database. This can help you understand what makes your donor base unique.  At this level, you can form macro segments based on geography, age-range, wealth score, and P2G.

For instance, your donor segmentation analysis could reveal that 60% of your donor base is over the age of 50. Your donors may have worked at large corporations. Over 45% may have an interest in local sports.

These details are crucial for you to see what makes your donor base unique. When you zoom in further, you may see that over 70% of people with these traits are regular donors. This then becomes an important segment for your advancement team to focus on.

WE Analyze can create such a model from your data. This donor look-alike model allows you to apply these patterns to your database. Doing this allows you to find more prospects who look like your chosen segment. Thus, donor segmentation analysis can also help to drive predictive prospecting. This includes finding look-alike prospects that match the profile of your best donors.

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Success from Look-Alike Model

For instance, Multiple Myeloma Research Foundation (MMRF) wanted to identify potential high-impact donors among a large prospect list and prioritize outreach to those constituents. WealthEngine created a donor look-alike model based on their best donors and then scored their existing prospect list using the model.

As a result, MMRF was able to connect with more high-impact donors in just two months.  In this period, they were able to gain 3x ROI on their campaign efforts.

Pleased with the results, Michael Hund, Director of Development has said:

“This is a revolutionary product that every single nonprofit should be using.”

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How You Can Increase Campaign Precision Through Models

You can categorize your macro segments further to refine your strategy. Custom models increase precision and enable you to predict giving.

Modeling goes beyond finding look-alikes. It can actually help you predict giving. For instance, WealthEngine’s custom models can forecast major gifts.

Donor Segmentation Models are not restricted to current members of your nonprofit. In fact, models can enhance fundraising at every stage in the donor lifecycle.

Segmenting your donor base based on lifecycle stage offers many advantages. You can identify current donors with major potential. Plus, you can win back former donors and prevent churn.

You can also use donor segmentation models to optimize your ask. This is especially important when it comes to donors who have high P2G scores. Optimizing your ask means that money hasn’t been left on the table that could have gone towards your cause.

Refined Donor Segmentation Also Enables Personalization

Furthermore, refined donor segmentation enabled through modeling helps you fine-tune your messaging. A personalized message that reflects customer interests is more likely to resonate.

Take your ideal donor segment for instance. You can divide them into smaller groups based on the type of sport that they follow. This enables you to not only tailor messages you send them but also create valuable experiences that match their interests.

Personalization (leads to)–> Message Resonance (which increases)–> Donor Engagement (Which results in)–>Better Lifetime Value.

This means that your donor remains connected to your organization and cause.  Moreover, LTV is a great metric for you to prioritize your prospects on. Prioritization means your budget and message focus on the most responsive segments. Thus, your efforts will see increased conversion at reduced costs.

Machine Learning Enhances Donor Segmentation Models

The more you use donor segmentation models, the better it is for conversion. WealthEngine’s machine learning capabilities ensure that our solution’s predictive algorithm is always improving. When you refresh your model every 15-18 months, you will have the most up to date prospect list for any campaign.

Increased precision leads to increased engagement. Moreover, increased engagement results in higher conversions and lower costs.

customer segmentation analysis

Super Charge Your Fundraising Campaigns

Learn more about how WealthEngine’s data science team can help. Gain deep insights to increase conversion rates through donor segmentation models.

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API Integration: Make Your CRM go the Extra Mile with Wealth Intelligence

API integration

Would you ignore a potential convenience if you had the option? Probably not, right? If you’re someone who lives on your CRM during most of your workday, then reading this will make your life easier. API integration is a convenient and secure way to add wealth intelligence to your database.

Doing this allows you to gain insights instantly within your CRM. Additionally, APIs can provide real-time insights on your contacts as soon as they come into contact with one of your channels.

Let’s begin with the basics before we continue exploring benefits and use cases.

What is API Integration?

API stands for Application Programming Interface. Think of a mobile or web application like Gmail, Twitter, or Facebook. These applications are powered by data, so you need a way to get data to and from the app. There needs to be an automated way to communicate with a database.

Simply put, API is a mechanism for one computer to consume the services
provided by another computer in a structured format. Further, an Integration is some functionality built using APIs between your wealth analytics provider’s platform and the CRM platform you use.

Top 3 Benefits of API Integration

1. Omnichannel Integration: APIs can integrate wealth data and analytics into any website, app, or system. This means that you can gain wealth insights on any digital channel, not just your website. For example, your e-commerce app can deliver a personalized experience to each customer based on their wealth and lifestyle data.

As a result, engagement would increase, thereby improving customer lifetime value.

Similarly, if you’re a nonprofit, you can imagine how seamless this would be:

2. Real-time Updates: A wealth intelligence API integration can instantly screen prospects so you can take immediate action. This means when a new customer or donor engages with your website, you can find out more about them instantly. Your insights engine can provide wealth and financial capacity insights into transactions in real-time. Therefore, knowing more about them allows you to begin nurturing them right away.

For instance, a WealthEngine client acquired about 6,000 new donors through a campaign and screened them using their WealthEngine integration. They found that about 10% of those individuals had a net worth over $1 million, which they have since passed to their major gift team to cultivate major relationships.

3. Enhance Your CRM: Import wealth data directly into your CRM or sales platform. This will allow your marketing or advancement team to spend more time focused on reaching the right prospects instead of switching back and forth between several platforms. It reduces the need for tasks like exporting files and uploading them into your platform of choice. This way you can make your CRM go the extra mile.

What WealthEngine’s API can do For You

WealthEngine offers sophisticated and secure API integrations that enhance your CRM with actionable wealth insights. Further, they can provide instant insights into your contacts on a variety of platforms.

Here are three ways in which you can use the API to integrate wealth intelligence:

1. Web Connect: This feature allows you to open a window on the WealthEngine platform so that you can review details on a desired profile.

reading a wealthengine profile
2. Prospect Link:  This feature allows you to request wealth profiles to review names and addresses.
3. Batch Import:  Request wealth profiles to review a list of names within large batch files.

Integrations We Offer:

Key API Integrations

How API Integration can Enhance Your Day-to-Day

You can benefit from the API’s ability to provide holistic, real-time intelligence in many ways, such as:

  • Websites, event registrations, digital campaigns, and online transactions: API integration can provide rich insights on anyone who engages with your digital channels. This way you can refine your personalization strategy over time. WealthEngine can provide further insights through reports that show views and click-through-rates weekly.

  • Email and newsletter registrations: Screen your list of subscribers to better understand their interests. This allows you to serve more personalized content. Furthermore, WealthEngine’s integration can offer you open and click rates thereby giving you quantified insights on your newsletter’s performance.

  • Automate screening processes: Your CRM can become more efficient through API integration. Gain wealth intelligence at the click of a button within your CRM platform. An informative wealth dashboard helps you see macro patterns in your database to ensure that you always stay updated.

Other use cases for API Integration

In addition to integration to measure digital activities, consider gaining actionable insights on other activities such as call center routing and direct mail.

Propel Your Prospecting Through API Today

Find out how WealthEngine’s API integration can boost your prospecting by offering unparalleled personalization.

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