Communications are critical in times of market turmoil,
particularly with affluent wealth management customers.
The dramatic stock market decline that began in earnest in late
2008 offers insight into how affluent investors may react to the
market volatility we're experiencing now. As part of our Affluent
Market Research Program, TNS closely monitored how investors were
thinking and acting back in 2008 and 2009. Among the highlights of
what we learned:
Affluent investors didn't panic. Most affluent
individuals achieve their wealth through decades of work and
saving. They take a long-term perspective. They have a plan and
they stick to it, in good times and bad. In mid-October, 2008 - a
month after the collapse of Lehman Brothers - a solid majority of
affluent investors had seen the value of their investments drop by
more than 25% in the previous six months. Still, most said their
investment approach had changed very little or not at all.
They craved information. Though they weren't
taking action, affluent investors by late 2008 were certainly
paying attention. Our October 2008 survey showed that many more
investors were taking "a wait and see approach." The proportion of
investors who were reading more about investment strategies had
also jumped significantly.
They scrutinized their advisors. Loyalty to
existing investment advisors fell markedly in 2008 and 2009, and
more investors reported a willingness to switch advisors. Compared
to 2007, investors evaluating their providers and advisors cared
less about service quality and less about commissions and fees.
They cared much more about getting better advice.
If the 2007 - 2009 experience has relevance for today's market,
it suggests financial services firms can capture the attention of
affluent investors by being a source of information about market
developments and investing strategies. Financial advisors should be
particularly proactive, and communications should clarify the
firm's market perspective.
Source: Kantar TNS