Strategies for Winning Over Emerging Affluent Customers
There's a clear and urgent need to win over emerging affluent customers. It's not just about providing regular banking services anymore; it's about giving them personalized financial advice and guidance. In this second webinar of the Stop Selling, Start Advising series, dedicated to shifting the mindset from sales to advisory services, Jennifer White, a Senior Director of Banking & Payments Intelligence at JD Power, and Evan Siegel from eGain delve into the strategies for capturing the business of the emerging affluent. They reveal the financial challenges the emerging affluent face and their unique needs in today's banking landscape.
How can you train your frontline teams to provide effective advice strategies to engage this highly desired audience?
Who Are the Emerging Affluent and Why Should You Target Them?
In order to successfully market to this specific group, it is crucial to understand who the emerging affluent are and what drives them. This demographic includes individuals under 40 with an annual household income exceeding $80,000. According to JD Power data, 9 out of 10 emerging affluent customers are interested in receiving proactive advice from their primary bank. However, despite 60% of this group recalling receiving advice or guidance in the past year, only 30% feel that the advice they received was beneficial to their needs.
Why Add Advice Delivery to Your Retail Banking Strategy?
Understanding the significant impact of not providing financial advice to this group: A bank’s failure to provide advice can negatively impact customer satisfaction, retention, and loyalty by up to 390 points.
What Can You Learn with Powerful Consumer Insights?
- Financial advice preferences among the emerging affluent: This group wants to receive advice on topics such as in-depth financial reviews, tax planning, and home-related matters to help them prepare for major life events.
- Top channels for effectively reaching and engaging with emerging affluent: While email communication is the top preferred choice, in-branch experiences remain valuable to them—strategically balance in-branch and digital channels to increase engagement proactively.
- Understand the crucial role of personalized financial advice and guidance in creating a positive customer experience: Banks and credit unions can win relationships with emerging affluent customers and compete against larger banks and fintech companies by enabling resources to address customers' need for valuable financial guidance fully.
- Harness the power of AI-Powered superior advice and solutions: Take the guesswork out by delivering advice by creating tailored recommendations, making the process efficient, consistent, and compliant.
- Using consumer research to enhance your strategy: To create positive customer experiences, it’s important to consider customer segmentation, channel strategy, banker rewards and scorecards, compensation, hiring profiles, HR model adjustments, marketing strategy, and differentiation from competitors.
To learn more about capturing the business of the emerging affluent and the strategies discussed in this conversation, listen to the full webinar by clicking the link below.
