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Financial Planners Implement the New Ways to Attract the Next-Gen Clients

Unique Ways Financial Advisors Use to Attract Next Generation of Clients

Ali Man
19th Dec 2018
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Only 21 percent of modern financial advisors are willing to work with their clients’ children. The majority of companies are still missing this opportunity and focus more on their old clients.

However, Baby Boomers are between 50 and 60 years old at the moment, while Millennials are between 18 and 35. In other words, Boomers represent less than 30 percent of the U.S. population in comparison with Millennials at 32 percent. So, this new generation is not only an opportunity of today but also is becoming a new opportunity for the future.

Here is why and what financial planners need to implement in order to attract the new generation of clients.

How to Connect with the NextGen Clients?

If the best financial advisors have spent too much time dealing with a certain type of client, it will be harder for them to connect with the next gen customers. Why is it challenging?

The difficulty here is that these advisors have applied a particular approach that was successful, but now they face the need to change this strategy. There is the need to apply a new formula because what has worked for baby boomers won’t work for their kids – millennials.

Cam Marston from Generational Insights, which is a research company studying various generations and events that influence on them, says “Our initial goal is to understand the differences between these two generations and identify the needs and wants of millennials that are different from those of their parents. These differences should help financial planners apply new ways to attract these new customers.”

What Makes Millennials Different?

People of different generations can hit major life stages at different ages. Baby boomers lived in a more do-it-yourself society when they were leading their own life and had families by the age of 30.

Millennials, on the contrary, prefer to live with parents even at 30 while being more educated. They tend to postpone moving out and starting a family because they are willing to climb the career ladder first. Also, they usually take more unsecured bad credit loans to pay off temporary expenses or student loans.

Necessary Changes of Financial Strategy

According to survey results of RIA Advisor Solutions, in order to attract new clients, 42% of financial firms consider changing their marketing/networking strategy, while 30% of respondents feel the need to hire younger advisors. So, how do financial advisors get clients of the next generation now?

  1. Change the marketing/networking strategy. Apart from differences between two generations, try to find some similarities so that your strategy can target both of them and attract even more customers. Your online presence and new marketing strategy can appeal to both types of customers at the same time. Include a bio with a background and professional experience of your top financial advisors. Also, let tech-savvy new gen clients get to know even more with the help of a rollover option where you can insert additional information, such as Spotify playlist or some casual photos.
  2. Hire younger advisors. While boomers wanted to know the background of their financial advisor and where they came from, millennials have a more professional perspective. They are eager to know how their advisor may help them achieve their goals and feel engaged and comfortable with them. It would be more natural for a young financial advisor to connect with the children of their affluent customers, as there won’t be any age gap.

All in all, financial planners need to use new ways of how to get clients, appealing to millennials in order to build a younger clientele and attract the next generation of customers.

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