The financial industry has seen major changes in recent years, especially in its client base. Millennials (born 1981–1996) and Gen Z (born 1997–2012) are now becoming significant players in the investment world. For Canadian wealth professionals and financial advisors, it’s essential to understand the preferences and habits of these young investors.
Research from the Ontario Securities Commission and Get Smarter About Money shows that while 4 out of 5 Millennials are saving, only 1 in 2 are investing. This may be due to Millennials focusing on paying off debt and prioritizing home ownership. Additionally, 6 in 10 say they don’t know enough about investing to get started, and 3 in 10 say they don’t trust big banks or investment firms.
5 Tips for Marketing to Younger Investors
1. Embrace Technology: Millennial and Gen Z investors grew up with technology. Offering intuitive digital platforms, user-friendly apps, and online advisory services can make a big difference.
2. Prioritize Financial Education: Younger people value knowledge. Hosting webinars, creating educational content, or offering one-on-one consultations with advisors close in age to these potential investors can make you a trusted source.
3. Personalize the Experience: Generic marketing won’t work. Tailor your communications based on individual goals, risk tolerance, interests, and life milestones. For instance, sending Gen Z prospects information about wills might not be effective, but emailing them a video or article on saving for a down payment on a first home could be.
4. Highlight Social Responsibility: Surveys show that 90% of Millennials are interested in responsible investing. Emphasize ESG investment options or highlight your firm’s corporate social responsibility initiatives.
5. Engage on Social Media: These generations spend a lot of time on platforms like Instagram, TikTok, and YouTube. Engage them with relevant content, financial tips, and market trend updates.
Dos and Don’ts for Marketing to Millennials and Gen Z
– Do engage in transparent communication. Younger generations value authenticity and are often skeptical of traditional marketing tactics. Be open, honest, and transparent in your messaging.
– Do understand the importance of peer reviews. Encourage satisfied clients to leave reviews and share their positive experiences on platforms like Google and Yelp.
– Do be responsive. Millennials and Gen Z expect quick replies and active engagement. Whether it’s responding to an email or a comment on social media, be prompt.
– Don’t use jargon. Overly technical language can be off-putting. Speak in terms they understand and relate to.
– Don’t underestimate their knowledge. While they might be young, many have already accumulated a lot of information about investing, especially with the abundance of online resources.
– Don’t rely solely on traditional marketing. Billboards, print ads, or social media ads may have less impact. Instead, focus on influencer partnerships, video content, and other digital marketing strategies.
Millennials and Gen Zers represent a huge opportunity for Canadian wealth professionals. By understanding their needs, using technology, and employing targeted strategies, advisors and wealth professionals can successfully engage with this growing market.
The iA Private Wealth marketing team has resources to support you and your firm and enhance your online efforts. Please reach out to us — we’re happy to help.