From push to pull: attracting new clients to private banking
From push to pull: attracting new clients to private banking
“In the private banking sector, the trend is negative. It is a good moment to try innovative methods.” This was the opinion of Gregor Wolf at a conference organised by the Europäisches Finanz Forum at the premises of LBLux bank in Luxembourg-Kirchberg. The director of the German firm Schober Information Group, specialising in market research and data management, believes that the current crisis is an opportunity to focus more on the needs of the client.
“In most cases, banks don’t have a choice: it is high time they started innovating and reflecting on the quality of the company’s relationship with its clients.” Gregor Wolf admits that to begin with private bankers mistrust firms like Schober that come along suggesting innovative client acquisition methods. Currently, though the clients targeted are not the same in all sectors, the method used for identifying and attracting prospects hardly ever varies. In Gregor Wolf’s opinion you have to start by understanding the client, including his requirements and expectations. The firm Schober then collects and analyses this data, establishing a profile of the target client. In order to minimise client acquisition costs, the next stage is to analyse the market to identify the number of potential clients and identify towns and districts with a high proportion of wealthy targets. According to Gregor Wolf, 60% of the methods for attracting new clients are valid for all sectors of the economy.
Customer, where are you?
Having identified potential clients, the next stage is to find the ideal channel for transmitting the message. Gregor Wolf stresses that the choice of medium is crucial. Nevertheless, whatever the marketing specialists do, certain clients remain unreachable. “I estimate that 10-15% of households are extremely difficult to reach”, says Wolf. Some people are suspicious towards all advertising, others have no access to the internet or simply don’t take an interest in finding out about new products and services. He refutes a cliché in circulation with regard to 21st century consumers. “Even if people are more emancipated, I do not have the impression that they are more critically astute. Of course the advertising market has evolved: nowadays, customers are more likely to go in search of information, whereas in the past it was the opposite, publicity had to come knocking at the door.”
Winds of change
Gergor Wolf does not mince his words. “Even though they are more conservative than other economic actors, private bankers are nevertheless conscious that a change of mentality is necessary. More attention must be paid to the demands of the client.” In this context, he hopes that the faults of the past will not be repeated. He says “stop” to high risk investment products that nobody understands. He believes that the mad race for unrealistically high returns must cease. “High risk products must be reserved for sophisticated clients. In past years, this was unfortunately not the case”, continues Wolf, who remains skeptical about the durability of economic recovery any time soon. He predicts it will take three to five years for the world economy to reverse the consequences of the financial crisis.