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When it comes to UHNW clients, generalization is the enemy

invest podcast

Many advisors aspire to serve the coveted group without really understanding their needs, wealth management marketing entrepreneur April Rudin says in an episode of Financial Planning’s Invest Podcast.

The strategies for wealth management firms were nearly uniform several years ago, a pattern Rudin wanted to break through her eponymous New Jersey-based firm. She works with enterprise wealth-management firms, fintechs and family offices on efforts to drive client acquisition and stronger branding.

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One of the things firms are doing wrong, is “oversegmentating” clients, according to Rudin.

“They either see themselves as wanting to serve this rarefied audience or think that they are capable of serving this rarefied audience without really understanding what it’s about,” Rudin says.

An example of this, she says, is the belief that UHNW clients are all about returns, when in reality nothing could be further from the truth. “They’re more about wealth preservation or more about philanthropic or more about succession planning or tax planning or some of the things that make wealth more complex,” Rudin says.

In a similar way, she says firms often use generalizations when they attempt to serve more younger clients or women, she says.

April Rudin is the founder of The Rudin Group.

“That form of segmentation doesn’t work,” she says. “A better approach is to offer many different entry points and let the people choose what they want.”