Lifestage Marketing in Wealth Management 2002

Scope

Presents Datamonitor's framework for lifestage marketing in wealth management Analyses the implications of 17 different key life events for a clients investment strategy.

Highlights additional products and service opportunities and potential marketing responses to each key life event.

Reasons to Purchase

Delivers insight as to clients motivations and investment needs during different life stages. Highlights potential cross selling opportunities allowing wealth mangers to extend share of wallet for their clients. Provides marketing ideas and content for wealth managers in their approach to customer during key life events.

Report Highlights

In April 2000, the Financial Services Authority (FSA) published a report titled Better informed consumers. In this report, the FSA found that in 16 per cent of cases the primary driver for the consideration of a financial services product was event/lifestage led and that it had an influence in almost a third of all cases. Due to their high level of customer proximity wealth managers and other players handling the investments of wealthy individuals are at an immediate advantage when it comes to employing lifestage marketing successfully. Key life events almost universally increase the need for advice (whether it is
taken or not) and can thus serve as a strong platform for improving relationships and cross selling other products and services.

EXECUTIVE SUMMARY

INTRODUCTION

What is this report about?

Who is the target reader?

How to use this report

MARKET CONTEXT

What is lifestage marketing?

How is the marketing of financial services changing?

A shift away from product focus

Anticipating customer needs

Possible barriers to implementation

Why is lifestage marketing relevant to wealth managers?

The advantages of lifestage marketing

Wealth managers’ preferential position

LIFESTAGE MARKETING FRAMEWORK

Overview

Datamonitor’s framework

Introducing Maslow

Placing Maslow’s hierarchy in a financial services context

Financial security

Trigger event: Get first job

Trigger event: Change job

Trigger event: Lose job

Trigger event: Start business

Trigger event: Buy house

Trigger event: Inherit wealth

Trigger event: Moving abroad

Trigger event: Retirement

Personal & Emotional

Trigger event: Marriage

Trigger event: Having a child

Trigger event: Child leaving home

Trigger event: Divorce

Trigger event: Having a grandchild

Trigger event: Falling ill

Trigger event: Death in the family

Status

Trigger event: Top promotion

Trigger event: Luxury purchase

Summary

ACTION POINTS

APPENDIX

Definitions

Further Reading

Datamonitor Reports

Datamonitor Global Wealth Service Briefs

Datamonitor Global Wealth Service Profiles

LIST OF FIGURES

Figure 1: The shift to a customer centric marketing approach

Figure 2: Placing Maslow’s Hierarchy into a financial services context

Figure 3: Datamonitor’s framework for lifestage marketing in wealth management

Figure 4: Typical implications for investment strategy of getting first job

Figure 5: Typical implications for investment strategy of changing job

Figure 6: Typical implications for investment strategy of losing job

Figure 7: Typical implications for investment strategy of starting a business

Figure 8: Typical implications for investment strategy of buying a house

Figure 9: Typical implications for investment strategy of inheriting wealth

Figure 10: Typical implications for investment strategy of moving abroad

Figure 11: Typical implications for investment strategy of retirement

Figure 12: Typical implications for investment strategy of marriage

Figure 13: Typical implications for investment strategy of having a child

Figure 14: Typical implications for investment strategy of a child leaving

home

Figure 15: Typical implications for investment strategy of divorce

Figure 16: Typical implications for investment strategy of having a grandchild

Figure 17: Typical implications for investment strategy of falling ill

Figure 18: Typical implications for investment strategy of a death in the family

Figure 19: Typical implications for investment strategy of a top promotion

Figure 20: Typical implications for investment strategy of a luxury purchase

Figure 21: Summary of the typical implications for investment strategy of different key life events

Figure 22: Summary of the likely psychological states of customers during different key life events

Figure 23: Summary of different marketing approaches for key life events