Unlock Future Growth by Identifying Customers with Increasing Wealth

Highlights: 

• The Wealth Growth Indicator (WGI) from Equifax helps marketers identify consumers likely to grow their wealth in the near future.

• By targeting these consumers, businesses can secure future revenue growth and efficiently build customer loyalty.

There’s no doubt that financial services marketers need to focus on growing balances today - in the current quarter and the current year. Without success today, achieving success tomorrow becomes much harder. 

So while KPIs to meet new-customer and balance growth goals are important, many successful marketers also focus on customer lifetime value and similar metrics that lay the foundation for revenue growth in the future. However, this can be a difficult exercise because it involves the future, which isn’t an exact science. Fortunately, there are ways to significantly improve your odds of success. 

For instance, marketers can focus on consumers that have a high likelihood of growing wealth in the near future, say over the next three years. The Wealth Growth Indicator (WGI) from Equifax does this by accurately estimating household wealth growth - or decline. For instance, results show that 77% of households with a WGI score of five will grow their assets by at least 20%. These consumers provide the best opportunity for future success!

Of course, while it’s nice to know these consumers exist, you really want to be able to market to them so they become your customers. So, where can you find them? In total, there are 25 million U.S. households whose wealth is expected to grow by at least 20%. Looking at state markets, it’s probably not surprising that California has the most consumers that will grow in wealth over the next three years. The Golden State is the leader not only when looking at the total market, but also critical market segments such as Gen Z households as well as Mass Market (<$100,000 in assets) and Mass Affluent ($500,000 - $1 million) households. 

However, even if your footprint doesn’t include California, there is likely still considerable opportunity in your own region. For instance, here are the top 10 cities in terms of growth potential (that is, households with a WGI score of five).

So while it’s critical to ensure you hit current KPIs and goals, you also need to lay the foundation for success tomorrow. Sophisticated marketers are able to balance these needs by leveraging tools like the Wealth Growth Indicator to accurately predict who will become more wealthy in the near future, enabling them to efficiently target customer and market segments with attractive promotions that encourage customer loyalty. Then, as these customers grow in wealth, you’ll be able to more easily hit your future KPIs and goals.