By Emma Parker
A new report from experts at Wealth X assesses the impact of the COVID-19 pandemic on the wealthy and explains how those who do business with high-net-worth clients should pivot their strategies to make sure key relationships are maintained.
The wealthy are not immune from concerns about their health and that of their family members. Since many affluent individuals also hold shareholdings in large publicly owned businesses, economic concerns associated with their business interests will also be uppermost in their minds.
Wealth X points out that: “…the personal wealth of very high net worth (VHNW) and ultra high net worth (UHNW) individuals has also been considerably impacted. How the economic fallout from Covid-19 specifically affects this wealth depends on the allocation of a wealthy individual’s assets. The majority of such individuals have large exposure to both private and public businesses (holdings).”
According to Wealth X 2020, some of the key characteristics of wealthy individuals with US$5 million+ in net worth (global) are:
Wealth X also points out that: “Most will have seen their wealth reduce, with many businesses struggling and stock markets across the world having nosedived. And for those holding liquid assets (such as cash) in their local currency, many have seen this asset weaken substantially against the US dollar – a silver lining for the wealthy in the US or those with reserves in US dollars. Yet the fate of those individuals’ personal wealth will depend much on how governments and health authorities deal with the path of the pandemic, and also what the economic recovery looks like once we are through the worst.”
According to Wealth X, there are a few key activities that should be undertaken at this time to stay engaged with a wealthy target audience:
- Maintain personal contact and individual engagement
- Showcase talent and expertise – to cement relationships
- Highlight good work your company is doing that aligns with your values
- Actively identify and discuss clients’ worries and concerns to secure trust
- Invest in your loyal customers and ambassadors, to strengthen those relationships
- Provide inspiration for those looking to the future
You can read the full report here.
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About the author
Emma Parker has worked with Dart since 2019 and has been writing professionally since 1999. Emma graduated from the University of Manchester with a BA (Hons) in 1997, has a post-graduate Diploma in Communications, Advertising and Marketing and a STEP Certificate in International Trust Management. She has worked in PR, marketing and business development roles, primarily in the legal and financial services sector, since 2001. Emma is now the co-founder of Sidekick, a financial services marketing consultancy in the Cayman Islands. She was raised in the UK, lived in the British Virgin Islands and has made the Cayman Islands her home since 2012. Emma has a passion for exotic travel, her family and Newcastle United Football Club.