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Customer Acquisition: Increase New Client Assets by Targeting the Right Audience

IXI’s Wealth Classification System Enables Investment Firm to Gain Up to $156 Million in Incremental AUM
By incorporating IXI’s Wealth Classification System into its direct mail prospecting campaigns, an investment firm can expect to increase the average opening balance from new accounts by 32%. Request a complete version of the case study.
Challenge

A leading investment firm recognized that in order to break even, its acquisition campaigns needed to convert a significant number of higher wealth clients. The firm’s existing acquisition models were largely demographics-based and lacked the ability to effectively identify which prospects had available assets to invest. The firm wanted to determine if enhancing its new customer acquisition models with insights about consumers’ financial potential would improve its direct mail acquisition results.

Solution

IXI worked with the investment firm to prove that targeting prospects with higher expected levels of investable assets optimizes acquisition campaign performance.

By estimating the assets of all U.S. households:

  • IXI’s wealth solutions show that approximately 22% of all U.S. households hold about 90% of all U.S. invested assets
  • These 22% of households generally have above $100,000 in investable assets and are often the target audience for investment firms’ prospecting campaigns

IXI’s Wealth Classification Systems enable firms to classify prospects into Wealth Tiers, thereby allowing them to target more high potential households that are likely to have significant investable assets.

Results

Classifying the results of the firm’s recent acquisition campaign prospect list by IXI Wealth Tiers showed that prospects in the top wealth tiers provided a much higher average opening balance than prospects in lower wealth tiers. By targeting only those households that likely hold over $100,000 in invested assets based on IXI’s Wealth Classification System, the firm can:

  • Increase the average opening balance for its prospecting campaigns to $64,269 from $48,753, representing a 32% lift
  • Identify new accounts with high potential and assign those accounts to appropriate treatment groups to cultivate the relationship
  • Expect to gain an incremental $156 million in assets under management per 1 million direct mail pieces

IXI's Wealth Classification System

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