Targeting by Income Producing Assets

Many financial advisors succeed by targeting their prospects by income producing assets. It’s another way to focus of households by their wealth.

This overlay was created by Claritas.

This is the definition:

Income Producing Assets (IPA) are investments, savings products, and other assets that produce income for an individual or household.  Key variables used to create the IPA estimate include: checking or regular savings account, IRA/Keogh/401k, private pension plan, investment securities, savings clubs, mutual funds, certificates of deposit.

These are the IPA ranges you can select:

  • Less than $25,000
  • $25,000 – $49,999
  • $50,000 – $74,999
  • $75,000 – $99,999
  • $100,000 – $149,000
  • $150,000 – $249,000
  • $250,000 – $499,999
  • $500,000 – $749,999
  • $750,000 – $999,999
  • $1,000,000 – $1,999,999
  • $2,000,000 – $2,999,999
  • $3,000,000 + up

The rationale for targeting by Income Producing Assets is similar to selecting by net worth. This is a way to reach households that have wealth that may not be reflected in their household income.

Examples of these households are generally in the senior homeowner segment. For example, a retiree may not have a high income level, but may own a high level of income producing assets.

One-on-One  Marketing

I like to call this marketing to a universe of one.

Income producing assets data can be overlaid on most of our consumer data, including homeowners, golfers, and frequent travelers. This helps you personalize your outreach even more.

Similar to marketing to high net worth individuals, you need to be very strategic when you market to people with a high IPA. These are discerning individuals who expect quality from everything you do. That goes for your marketing materials and offer as well.

Direct mail is a top marketing channel for households with a high IPA.  Remember that quality paper, personalization and exclusive offers are musts for this group.

Variable print technology lets you change name, copy and offer on each mail piece so it’s as personalized as it can get.

Financial and luxury marketers, large and small, can use this level of consumer detail to find the new customers they need. Households with a high level of income producing assets have the means to spend money and to do everything they can to grow it.

The marketers who get to those consumers first with a message that speaks personally to their needs and interests stands the best chance of making a connection and a customer.