Philanthropy as a customer retention tool 2008
Category: Financial Services
Library Code: BFFS0595
Publication Date: 03-June-08
Philanthropy is growing worldwide. This brief presents the extent and characteristics of giving based on several important external studies, and proposes that wealth managers offering strong philanthropy services can retain their existing client base, and the children of those clients.
Sets the stage by highlighting the extent of charitable giving in US, Europe and Australia (secondary research). Explores motivations for philanthropic giving. Summarizes 5 banks' marketing of philanthropy services.
In the United States, charitable giving is on the increase due to the generosity of entrepreneurs. In 2006, charitable giving in the United States amounted to $289.5 billion, representing 2.2% of GDP, and an 11% increase on giving in 2005. Smith Barney appeals to emotive reasoning, highlighting mutual benefits: "We all have personal reasons for giving to charity, but many of us give out of a common desire to share our good fortune with others. And while our generosity can certainly improve the communities in which we live and work, it can also help us financially." 37% of European HNWs earned their wealth though entrepreneurship, according to Datamonitor's Wealth Management Market Leaders Survey. The extent to which HNW individuals earned their wealth from business entrepreneurship ranged from 28% in the UK to 43% in Italy.
Reasons to Purchase
Gain an overview of the state of philanthropic giving. Understand the motivations for and changing nature of philanthropic giving. Provides high level advice to banks seeking to use philanthropy as customer retention tool.
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This product was added to our catalog on Friday 13 June, 2008.