What can we learn from the way HNWIs conduct research and seek financial advice?

Coronavirus

Sorry to start with doom and gloom, but unsurprisingly, these are all concerns felt by high-net-worth individuals (HNWIs) about their finances in the years to come.

But what may surprise you is that these factors have changed the way in which HNWIs act online. In fact, 75% of all HNWIs who responded to Receptional’s recent survey have made an investment decision based solely on online advice.

With more and more individuals consuming online content, it’s important to understand how we can target HNWIs with the right message, at the right time and with the right platform.

Building on our research from 2020, this year we delved further into the buying habits of HNWIs, to discover how they research online and what influences their financial decisions.

But what did we learn? And how can this inform our marketing strategies?

The research

We surveyed over 400 people, using relevant qualifying questions to ensure the most effective results.

All those surveyed met the following criteria:

• An annual household income (before taxes) of £100,000 or more; and
• In the past 12 months, had sought financial advice online.

What we discovered

Drawing conclusions from our research, we found out what the top platforms used by HNWIs to conduct their research were, what informs their investments and choice of firm, and how portfolio size affects confidence and trust.

1. 67% of HNWIs start their research on Google

Compared to our previous research, this has increased by 31%, and is a likely effect of the pandemic — more of us are going online to research and seek advice, and this is no different for financial services.

As search engines are the main priority for HNWIs, it’s not only important to appear on the top spots of Google, but also to provide answers to the questions your prospective clients are asking.

2. Online written content and video are top resources for HNWIs’ research

Compared to 36% of panellists who read print newspapers and magazines to research, 49% prefer to consume online written content. This reinforces the idea that you should be an authoritative resource in your field.

We also discovered that there is a rise in the use of social media, with YouTube and Facebook in particular taking the lead. Of those surveyed, 44% and 32% respectively, included these platforms in their research journey.

3. Influences and choices vary between different portfolio sizes

We found that year on year, in general, face-to-face consultations with a firm are highly influential on the decisions HNWIs make. But when broken down by portfolio size, this changes.

For example, those with a portfolio size of over £10m are most influenced by a telephone consultation when choosing a firm — 32%, compared to 11% who chose face-to-face consultations.

Those with a portfolio of less than £250,000, on the other hand, are more likely to follow recommendations from friends or colleagues.

We can therefore assume that portfolio size can alter the level of confidence, the way in which HNWIs are influenced when making financial decisions, and even perhaps risk appetite.

How can our research help you tackle the challenges of marketing to HNWIs?

1. When researching investments or asset management, Google is the top platform that HNWIs use. You should ensure that you have an established content strategy combined with a bespoke advertising campaign, to help improve ranking and appear in those important top spots.

2. Through online written content, you can answer your prospects' questions, as well as create link-worthy content for your site. It may also be time to consider venturing into other platforms, such as social media, to reach your prospects.

3. The way in which HNWIs act differs depending on their portfolio size, which we can assume also changes depending on the stage of their journey. A well-developed messaging matrix can ensure that you are targeting the prospects you want to attract, with the right message and the right form of content.

For more insight into the buying habits of HNWIs, download our eBook: High-Net-Worth Individuals’ Buying Habits Revealed: 2022 Edition.