Millennials are the future for financial advisors
Introduction
With only 21% of millennials receiving most of their financial advice from a financial advisor, financial advisors have plenty of room to grow their relationships and reach this unique generation - their firms are dependent on it. Below, we cover 4 ways to reach, attract and resonate with millennial clients.
Four ways to reach millennials:
Out with the old, in with the new: Don’t just offer the same services and pricing to millennials that you offer Baby Boomers and Gen X. To capture millennials, it’s important to offer different types of pricing and tailor services to their needs. For example, the minimum investment threshold at your firm may be too high for young professionals just starting out. By lowering this minimum, you may be able to capture them early on and turn them into lifelong customers. Furthermore, make sure you have a clear perspective on ESG investment.
Use tech to increase engagement: Make sure your interactions with clients are engaging such as having a quick quiz about their risk tolerance or investing values during the onboarding process that clients can fill out beforehand (some of us grew up on those Buzzfeed quizzes after all). More importantly, make sure your client-facing platforms are interactive and easy to use, incorporating visuals to increase engagement. Your clients should be able to access all their financial data via mobile app as they are used to doing so through their banks and credit card companies.
Focus on inbound marketing: Your time and resources should be focused on inbound marketing rather than outbound marketing. Millennials are not going to come to you and trust you just because they saw an ad for your services. Rather, create blog posts, have an active twitter account, or write content for instagram posts, tiktok videos, or podcasts on topics relevant to millennials such as how to manage student loans or how to retire early (FIRE). Make sure this content is in bite-sized chunks that can be easily consumed on these platforms.
Your team reflects your values: We know millennials care about using their economic power to reflect the values that they have. Make sure your team shows that your firm also has these values by having a diverse team. Make sure your clients see that your advisors are of different races, come from different backgrounds, and range in age just as they do.
Conclusion
Reaching millennials may seem like a hard task if you’re continuing to use the same tactics on them that you use with your older clients. However, by understanding millennials better and tailoring your services and outreach to them, you’ll have a better chance of capturing this segment, making them customers for life. Remember, it’s all about the long game.
