Wealth indicators can help you identify your top prospects fast. Use these wealth signals to determine if you’re talking to someone who has the capacity, and even the propensity, to give or spend.
As wealth continues to grow across generations and geographies, it’s becoming progressively harder to identify High Net Worth and Ultra High Net Worth Individuals. Some can be found easily based on their spending and giving behaviors. But, with the increased accessibility of consumer goods, tangible items are becoming less useful to indicate wealth. So, to maintain their status, HNWIs and UHNWIs are investing their money in new areas. Which begs the question: are there universal wealth indicators? If so, what are these wealth signals?
Wealth indicators can be broken into two types: traditional and intangible. Let’s explore specific wealth signals to look out for so you can easily identify HNWIs and UNHWIs who may be hidden in your database.
Traditional Wealth Indicators
Traditional wealth indicators are tangible items or easily discoverable characteristics that would indicate that your customer, donor, or prospect is wealthy. For example, an individual may be wealthy depending on these four wealth signals:
1. Profession
Is this person’s profession similar to the average profession of a HNWI? If so, their job can give you a better impression of how much they earn, their net income, and what their potential spending and giving capacities are.
2. Foundation Affiliations
Do they sit on any boards? Have they started any foundations? If so, they are far more likely to give to causes or spend on high-end goods.
3. Size of their Charitable Gifts
How much have they contributed to causes? Could their donation be considered a major gift? By looking into this further, you’re able to determine if the individual has a history of donating major gifts. Otherwise, based on their income and net worth, they at least have the capacity to make considerable contributions to your cause, or others.
4. Real-Estate Holdings
Does this HNWI or UHNWI own additional properties? The number of properties or value of the existing property the individual possesses can indicate their net worth.
So, by using WealthEngine’s wealth and lifestyle insights, you can easily search for wealth attributes, do a wealth screening, build a wealth model, score your contacts, segment your audience, and drive outreach and learn more about current and prospective donors and customers on one seamless platform.
WealthEngine Customers: Login to see wealth signals for your contacts.
Intangible Wealth Indicators
Intangible wealth indicators are consumer choices or investments that aren’t blatantly obvious or material in nature. Since 2007, the United State’s top 1% (individuals who earn >$300k each year) are spending significantly less on material goods. Why? Since more goods are readily available, including luxury products, many HNWI/UHNWI and members of the middle class own many of the same things. So, there’s no differentiation between the rich and middle class. To secure their status and maintain their exclusivity, the wealthy are now investing more in cultural capital. This would include investments in services such as:
- Education
- Healthcare
- Retirement
As a result, their wealth signals are becoming less overt. By pouring their liquid assets in services, not only are wealthy individuals able to cement their status in an exclusive way, but they have a greater amount of influence in their communities and beyond.
That being said, what is the best way to understand or appeal to individuals who approach their wealth this way? Well, when you combine wealth data with interest and affinity information, you can gain a 360-view of your donors and customers. This equips you with the essential tools to engage prospect in ways that are personal and relevant.
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