Market to the UHNW Differently - Wine Boot Camp Feb. 24th 2016 David Friedman - LuxeSF
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Market to the UHNW Differently
Wine Boot Camp
Feb. 24th 2016
David Friedman
Co-Founder & President
Wealth-X
dfriedman@wealthx.com
877-887-8454
1
WEALTHX.COM
Factsheet
8/10 600 + 160
$
Of top 10 Global Private Banks are More Billionaires Identified than Countries Included
Clients Forbes
225,000 Average Weekly
Database Changes
165 +
Highly-Trained Researchers
200 + 16,151,7 38
49 33 Languages
Spoken by
Staff
Global Staff Data Points
2 2
WEALTHX.COM
How We Work
Publicly Available Thousand of Financial Analyses
Sources Sources
Online and offline, paid and Dizzying array of forensic
free, to source our Paid search tools to free accounting, modeling, and
information in many search magazines, private company valuations
languages; no interviews; no newspapers, global stock
phone calls exchanges, public filings and
more
3 3
WEALTHX.COM
Bespoke Intelligence Dossier
4 4
WEALTHX.COMNoted Expertise
5 5
WEALTHX.COMOur Authority In The News
WEALTHX.COMThe Market for Reaching UHNW is
Broken and Inefficient
7
WEALTHX.COM8
WEALTHX.COM9
WEALTHX.COM10 10
WEALTHX.COMScenario 1
Mistake #1: Segmentation by Spend not by Capacity
• What you Know Today:
– Client A has been spending several thousands dollars with you over the last 2-3 years for either family members, graduations, etc. But has
yet to purchase six figures with your brand
– He/she is in your database and receives your weekly newsletter and “flash” sale alerts
• What You Don’t Know:
– He/she is worth $100M; mostly liquid
– Loves fine jewelry and is a collector of art and luxury cars
• Intelligence Deficit Impact:
– Implicit brand erosion with this individual because the marketing and communications strategy for he/she is the same as the rest of your
clients
– Undermining ability to sell higher priced items to this individual
• How Intelligence Can Turn it Around:
– With the knowledge of their net worth, passions, hobbies, interests and relationships, craft a bespoke approach to that
individual
11 11
WEALTHX.COMScenario 2
Mistake #2: Fatal Hope Marketing Event
• What You Do Today:
– Marketing decides to host an exclusive event for Scotch and wine tasting with dinner by a famous Chef
– Marketing calls the manger of the NYC retail store and says please invite your top clients and ask them to invite
their “friends”
• Intelligence Deficit Impact:
– Your hope is that those key clients will bring not only their friends, but their financially qualified friends who
might have a passion for your product
– You hope that during the course of the night you meet and have an opportunity to discover an engaging
conversation and connect with that individual, whom you hope has the financial wherewithal to afford your
product
– You hope to have a reason to follow-up
• How Intelligence Can Turn it Around:
– Proactively map out the social graph of individuals around your top clients, be specific about who you
want in the room, understand everything about them before they walk in the door and have all sales
staff prepared for that engagement (we call this a Future Client Strategy mapping exercise)
12 12
WEALTHX.COMScenario 3
Mistake #3: We are a Lifestyle Brand
• What You Do Today:
– Start a “Lifestyle” magazine and content to engage your wealthiest and
affluent consumers
– You launch the magazine with content around what you “think” they want
to consumer and read
• Intelligence Deficit Impact:
– You don’t know their passions, hobbies and interests and so therefore
bombard them all categories leaving it to them to curate and sort through
• How Intelligence Can Turn it Around:
– Engage this audience based on the content they want to consume
mapped to their affinities, passions, hobbies and interests
13 13
WEALTHX.COMWhat is the Market and Where are the
UHNW?
14
WEALTHX.COMUHNW Population: Larger and Wealthier
211,275 29.7
US$ trillion
UHNW Individuals UHNW Wealth
15
Source: Wealth-X and UBS World Ultra Wealth Report 2014 WEALTHX.COMThe “Typical” UHNW Individual
Average Net Worth Average Age
US$141 million 59 years
Average Liquidity Average Number of Children
US$35 million 2 children
16 16
Source: Wealth-X and UBS World Ultra Wealth Report 2014 WEALTHX.COMMost Concentrated Consumer Segment
211,275 individuals
UHNW UHNW
0.004% Market Share
$
US
Wealth
of the world’s $7,395 37%
Management
billion
population
13%
US$234
Luxury 19%
billion
of the world’s
wealth Non-
US$90
Corporate 18%
billion
Philanthropy
17
Source: Wealth-X and UBS World Ultra Wealth Report 2014 WEALTHX.COMWhere Are The World’s Ultra Wealthy?
18 18
Source: Wealth-X and UBS World Ultra Wealth Report 2014 WEALTHX.COMUSA Keeps its Pole Position
UHNW WEALTH
COUNTRY UHNW POPULATION
US$ billion
1 UNITED STATES 69,560 9,630
2 GERMANY 19,095 2,580
3 JAPAN 14,720 2,430
4 UNITED KINGDOM 11,510 1,445
5 CHINA 11,070 1,565
19 19
Source: Wealth-X and UBS World Ultra Wealth Report 2014 WEALTHX.COMTop 10 World Cities
CITY UHNW POPULATION 2012-2013 CHANGE %
1 NEW YORK, UNITED STATES 8,655 7.9%
2 LONDON, UNITED KINGDOM 6,815 7.2%
3 TOKYO, JAPAN 6,185 2.8%
4 SAN FRANCISCO, UNITED STATES 5,460 12.8%
5 LOS ANGELES, UNITED STATES 5,135 3.8%
6 OSAKA, JAPAN 3,405 3.2%
7 PARIS, FRANCE 3,345 4.7%
8 HONG KONG 3,335 4.9%
9 CHICAGO, UNITED STATES 2,885 8.3%
10 MEXICO CITY, MEXICO 2,780 3.2%
20 20
Source: Wealth-X and UBS World Ultra Wealth Report 2014 WEALTHX.COMUnited States
21 21
Source: Wealth-X and UBS World Ultra Wealth Report 2014 WEALTHX.COMTop 10 US Cities by UHNW Population
22 22
Source: Wealth-X and UBS World Ultra Wealth Report 2014 WEALTHX.COMFindings from
Wealth-X and NFP Family Wealth Transfers Report
US$16 trillion to be
transferred in the next three
decades
FAMILY WEALTH TRANSFERS REPORT
sponsored by
23
WEALTHX.COMEngaging the Ultra Affluent
24
WEALTHX.COMWill Robots Wear Cartier?
25
WEALTHX.COMKey Trends
• UHNW consumers are looking for strong brand voices and narratives yet for
bespoke experiences
– Successful engagement of the UHNW market by luxury brands will have to
navigate this tension successfully
• Data driven marketing – Shift from “What did they spend” to “What could
they spend” from Segmentation by spend to wealth
– From marketing based on spend to marketing based on net worth; from how
much did they spend to how much can they spend
– When sitting down with your agencies, discussion from average spend to annual
household income
• The US is the New Emerging market for luxury
• Risk & Reward: The convergence of UHNW and KYC/AML
26
WEALTHX.COMRisk Graph - Reputational Risk
• The emergence of hyper polarized
wealth in emerging economies is
closely linked with traditional risk
and compliance issues
• AML/KYC
– Casinos
– Auction Houses
• Enlightenment Publishing
– Cyprus
– Arkady R. Rotenberg, a judo
sparring partner from Mr. Putin’s
St. Petersburg youth
– Microsoft
27
WEALTHX.COM“LinkedOut”
The Wealth Graph and Driving Referrals
Who do your top clients know that should be your next key clients?
28
WEALTHX.COMReferrals:
#1 Source of New Client Acquisition
• The study – revealed at the Google
Beach Pavilion in Cannes – notes that
consumers now make purchasing
decisions in the same way they
consume content – with the purpose of
choosing brands that engage their
passion and interests.
• “With consumer behaviour changing so
quickly, understanding that the path to
purchase is actually a path to purpose
has meaningful implications for brand
advertising at all stages along the
consumer journey,” said Brandon
Berger, worldwide chief digital officer
at Ogilvy & Mather
29
Source: http://cannes.campaignlive.co.uk/2014/06/17/google-and-ogilvy-research-finds-word-of-mouth-had-biggest-impact-on-purchase-decisions-not-media/ WEALTHX.COMWealth Graph
30
WEALTHX.COMWhy Referrals?
“The last hundred years have been defined by the
mass media. In the next hundred years,
information won’t be just pushed out to people. It
will be shared among the millions of connections
people have…Nothing influences people more
than a recommendation from a trusted friend…
A trusted referral is the Holy Grail of advertising.”
-- Mark Zuckerberg
31 31
WEALTHX.COMCase Studies: Bespoke Marketing and
Content
32
WEALTHX.COMCase Study: Bespoke Marketing Event
• Challenge ITEMS RESULTS
– Global Luxury Client wanted to target specific Conference Attendee List 500
UHNW individuals at an Oil & Gas UHNW Identified 50
conference.
% Target 10%
Invites Sent 50
• Solution:
RSVPs 40
Bespoke Marketing Campaign Percent Accepted 80%
– Wealth-X Screening: Identified UHNW
Follow up Flight Demos 8
prospects.
Planes Sold 5
– Our Global Luxury Client then sent cold
invitations to those prospects for a marketing
event that was hosted with another Wealth-X
fashion client.
33
WEALTHX.COMContent is the “New Black”
WEALTH-X AND UBS BILLIONAIRE CENSUS 2014
WEALTH-X AND ARTON CAPITAL PHILANTHROPY REPORT 2014 WEALTH-X AND UBS BILLIONAIRE CENSUS 2014
FAMILY WEALTH TRANSFERS REPORT
SAVILLS WORLD RESEARCH 2014
sponsored by
AROUND THE
KNOWLEDGE PARTNERS
WORLD IN DOLLARS
AND CENTS
HOW PRIVATE MONEY MOVES AROUND THE REAL ESTATE WORLD
WORLD ULTRA WEALTH REPORT 2014
pw_layout 10.indd 1 09/12/2013 13:14
34 34
WEALTHX.COM35
WEALTHX.COMSocial Media and the UHNW Market
Nerds Dinner at Davos
“Larry, do you use Facebook?
• They are online “No, not really,” Page replies without affect
in his high-pitched nasal voice. Zuckerberg
• But for a majority, they are seems disappointed.
“LinkedOut”: “Why not?” he perists.
– They are not on “It’s not really designed for me,” Page
answers. Zuckerberg starts to ask him
Facebook another questions, but is deterred by
– They are not on LinkedIn Sandberg.
“Mark! Don’t talk about that in front of
• Except for financial David!” she scolds.
services and digerati -- David Kirkpatrick, The Facebook
Effect
36
WEALTHX.COMThe Future of Luxury Digital Advertising
Your Data CRM Segmenting
Mass Affluent/
HNW
Digital
Marketing by
Segment
Targeted UHNW
37 37
WEALTHX.COMUHNW WINE PROJECT
18/02/2016
WEALTHX.COMWINE LOVER UHNWI
% of UHNWI WINE LOVERS
France 21,9%
Chile 17,5%
Italy 15,1%
South Africa 9,3%
Spain 9,2%
Australia 9,0%
Switzerland 5,7%
United Kingdom 5,1%
Canada 5,0%
Hong Kong 4,8%
§ The chart shows the proportion of wine lovers by UHNWI for each country.
Not surprisingly the proportion of wine lovers is the highest in countries with
a strong wine tradition: 22% of French UHNWI have an interest in wine.
39
WEALTHX.COMWINE LOVER UHNWI
Table 3. Geographic UHNW Breakdown by US State
% of UHNWI WINE % of distinct CFIDs
Business State
LOVERS - TOTAL UHNWI -
California 40,3% 20,9%(1)
New York 14,8% 15,3%(2)
Texas 7,0% 8,5%(3)
Illinois 5,4% 4,2%(6)
Florida 4,0% 4,7%(4)
Washington 3,2% 2,7%(10)
Colorado 3,0% 1,9%(13)
Pennsylvania 2,2% 3,6%(7)
Michigan 1,9% 1,7%(16)
Massachusetts 1,6% 4,5%(5)
• When it comes to the distribution of wine lovers around the United States we can
see that most UHNW wine lovers are concentrated in California.
• 40,3% of wine lovers can be found there and 8,4% of Californian UHNWI love
wine (see next chart).
40
WEALTHX.COMWINE LOVER UHNWI
Table 4. Percentage of UHNW Wine Lovers by US State
% of UHNWI WINE
Business State
LOVERS
California 8,4%
Colorado 6,3%
Washington 5,2%
Illinois 3,5%
New York 3,4%
Texas 3,4%
Michigan 3,3%
Florida 2,5%
Pennsylvania 1,9%
Massachusetts 1,5%
41
WEALTHX.COMMARKET SEGMENTATION ANALYSIS
WEALTHX.COMTable 7. Average UHNW Characteristics
Characteristic UHNW Composition WINE LOVERS BEER LOVERS
Gender Male (87%); Female (13%) Male (91%); Female (9%) Male (92%); Female (8%)
Married (91%), Divorced (4%), Married (88%), Divorced (6%), Married (87%), Divorced (5%), Single
Marital Status
Widowed (3%), Single (2%) Single (3%), Widowed (2%) (4%), Widowed (3%)
AgeTable 8: UHNW Industry Sector Wine Love vs Total UHNWI
Rank % of UNHWI Rank
Industry
Wine WINE LOVERS Total
1 Finance / Banking / Investment 14% 11,5%(1)
2 Beverages 13% 1,1%(24)
3 Real Estate 5% 3,4%(6)
4 Textiles, Apparel & Luxury Goods 5% 2,3%(10)
5 Food Products 4% 3,1%(8)
6 Non-Profit & Social Organizations 4% 4,9%(3)
7 Business Services 4% 4,0%(4)
8 Industrial Conglomerates 4% 4,0%(5)
9 Hotels, Restaurants & Leisure 4% 1,5%(18)
10 Media 3% 2,1%(11)
11 Manufacturing 3% 6,0%(2)
12 Sports & Entertainment 2% 1,4%(21)
13 Oil, Gas & Consumable Fuels 2% 2,0%(13)
14 Health Care Providers & Services 2% 2,4%(9)
15 Diversified Financial Services 2% 1,0%(26)
16 Asset Management 2% 0,9%(28)
17 Automobiles 2% 1,8%(16)
18 Construction & Engineering 2% 3,2%(7)
19 IT Services 2% 1,9%(15)
20 Shipping / Packaging / Distribution 2% 1,4%(20)
• If we analyze from which industry our subgroups come from we can see that
similar to the total population on the top position we have ’Finance/Banking/
Investment’, however, it is interesting to note that both subgroups are strongly
connected with ’Beverages’ and ’Food Product Industry’.
44
WEALTHX.COMAFFINITY ANALYSIS
WEALTHX.COMWINE LOVER UHNWI
Table 10: UHNW Affinities
Rank % of UNHWI
Hobbies Rank Total
Wine WINE LOVERS
1 Alcoholic Beverages 100% 5,4%(29)
2 Sports 49% 34,9%(3)
3 Business 46% 58,4%(1)
4 Philanthropy 34% 36,2%(2)
5 Art 27% 16,1%(8)
6 Travel 26% 14,5%(12)
7 Finance 24% 29,2%(4)
8 Outdoors 21% 17,6%(6)
9 Food 21% 7,7%(23)
10 Aviation 19% 16,3%(7)
11 Music 17% 9,5%(17)
12 Vehicles 16% 9,1%(18)
13 Public Speaking 16% 14,7%(11)
14 Family 16% 13,7%(14)
15 Real Estate 16% 15,2%(9)
16 Animals 15% 7,3%(26)
17 Technology 15% 14,0%(13)
18 Education 14% 20,4%(5)
19 Reading 13% 7,5%(25)
20 Politics 13% 14,9%(10)
46
WEALTHX.COMWINE LOVER UHNWI
Table 11: UHNW Affinities
HOBBY - Alcoholic Beverages HOBBY - Sport (Top5)
Alcoholic Beverages - Wine 100% Sports - Golf 30%
Alcoholic Beverages - General 2% Sports - Skiing 20%
Sports - Football/Soccer 16%
Alcoholic Beverages - Whisky/Spirits 1%
Sports - Tennis 16%
Alcoholic Beverages - Beer 1%
Sports - General 16%
HOBBY - Business (Top5) HOBBY - Philanthropy (Top5)
Business - Entrepreneurship 50% Philanthropy - General 84%
Business - Management 35% Philanthropy - Social Causes 12%
Business - General 28% Philanthropy - Community Causes 5%
Business - Leadership 18% Philanthropy - Religious Causes 4%
Business - Retail 5% Philanthropy - Healthcare 1%
HOBBY - Art (Top5)
Art - General 88%
Art - Photography 10%
Art - Painting/Drawing 6%
Art - Sculpture 3%
Art - Ceramics 1%
47
WEALTHX.COMThe Proof of Concept
48
WEALTHX.COMProof of Concept Purpose
• A dataset comprising totalling 4,791 records was supplied by
beta user.
• The data was cleaned and standardized and then the records
were screened against the full Wealth-X database.
• This presentation will cover a small selection of case studies
drawn from the pool of potential matches.
• The value lies in highlighting individuals whose UHNW status
you may not be aware of, and providing greater depth and
detail on those individuals that were already known to you.
49
WEALTHX.COMCase Study #1
Client Record Wealth-X Match
First Names: First Names:
Last Name: Last Name:
Date of Birth: 02 Feb 1956 Date of Birth: 30 Apr 1957
Company: Company:
LTV: $21,353 Net Worth: $250m
There can be occasions when there is a
data discrepany, e.g. DOB. In this case
RESULT name and company fields match which
UHNW suggests that this is a true match. 50
WEALTHX.COMCase Study #1
Business Biography
Previous Positions Held
Wealth Analysis
Interesting Facts
Interests, Passions & Hobbies
Clubs & Boards
Philanthropy
Education
Politics
Known Associates
Service Providers
Family
Contact Information
51
WEALTHX.COMCase Study #2
Client Record Wealth-X Match
First Names: First Names:
Last Name: Last Name:
Date of Birth: 14 Nov 1965 Date of Birth:
Address: Address:
LTV: $175.63 Net Worth: >$50m
RESULT
UHNW 52
WEALTHX.COMCase Study #3
Customer Record Wealth-X Match
First Names: First Name:
Last Name: Last Name:
Date of Birth: Date of Birth:
Address: Address:
Company: Unknown Company:
LTV: $754.23 Net worth: $375m
RESULT
UHNW
53
WEALTHX.COMCase Study #3
Customer Record Wealth-X Match
First Names: First Name:
Last Name: Last Name:
Date of Birth: 14 Nov 1962 Date of Birth: Nov 1962
Address: 233Milford,Corona Address: 233 Milford Drive,
Del Mar,CA Corona Del Mar, CA
Company: New American Company: N/A
Funding
Net worth: $100m
LTV: $1,671.19
RESULT
UHNW 54
WEALTHX.COMCase Study #5
An analysis of wealth gives the breakdown of an individual’s asset portfolio by
type and value:
55
WEALTHX.COMCase Study #6
Customer Record Wealth-X Match
First Names: First Name:
Last Name: Last Name:
Date of Birth: Date of Birth:
Address: Address: FL
Company Unknown Company
LTV: $26,336.57 Net Worth: $550m
RESULT
UHNW 56
WEALTHX.COMCase Study #6
Wealth-X screening enables you to identify UHNW Associates.
Cultivating these relationships may open channels to other potential UHNW
clients, outside the existing client base.
Alfred C.
Carolyn K. Roberts
Warrington
($30m)
IV($450m)
Client
($550m)
Clyde D. Brown II Marshall McAllister
($35m) Criser III($30m)
57
WEALTHX.COMKnown Associates
Match Known UHNW Combined Total Wealth
Quality Associates Associates
High 55 10 $5.7B
Total Wealth:
Medium 7 2 $1.8B
Low 56 30 $8.3B
$15.8bn
* figures for illustration only
Every UHNW in the database may
have one or more associates, opening
doors to even more potential
prospects
UHNW KAs UHNW KAs
(passion for wine)
UHNW Known Associates
58
WEALTHX.COMSurfacing the Golden Needles in the Haystack
What Key Client Intelligence Could Look Like
59 59
WEALTHX.COMDynamic News & Alerts & Warm Referrals
60 60
Source: Wealth-X Pro WEALTHX.COMDynamic News Allows Monitoring
for Opportunities to Engage
61 61
Source: Wealth-X Pro WEALTHX.COMiPad and iPhone Access
62
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