According to Smart Asset, only 11% of millennials regularly use financial advisors, and only about a third of financial advisors actively target millennials. This indicates a significant need for financial advice among millennials and a missed opportunity for many advisors. Why, then, are so few financial advisors marketing to millennials?
The gap might stem from differences in how millennials communicate and conduct business compared to previous generations, making some advisors hesitant or unable to adapt. Alternatively, financial advisors might need a better grasp of what appeals to millennials. Either way, attracting millennial investors requires a shift in perspective and marketing strategy. Here’s what you need to know about marketing to millennials.
Bridging the Gap: Millennials and Financial Advisors
Millennials differ from the typically older clientele most financial advisors serve, necessitating a different approach to connect with them. While the age gap is a factor (the average advisor is 55, and millennials are 25 to 40), it’s not the only issue. Millennials are used to having more choices, more ways to communicate, and more personalized service from the brands they interact with.
Your advisory has access to the technology that millennials favor, so the gap isn’t about lacking tech. It’s about how millennials and advisors use that technology differently. Here are five steps financial advisors can take to connect with millennials, build trust, and ultimately grow their business.
1. Engage Millennials Where They Are Most Comfortable
Millennials have used the internet for social interactions and purchasing products and services their entire lives. They communicate through social media platforms like Facebook, Instagram, and Twitter, and so should your marketing. Connecting with a millennial audience on their preferred platforms allows advisors to interact more frequently and in a more relaxed manner, which typically appeals to this demographic.
2. Don’t Forget the Personal Touch
While millennials love technology, they still need the human touch for important decisions like financial planning. Robo-advisors might seem perfect for tech-savvy millennials, but only about one in five use this technology, according to Investopedia. Robo-advisors can’t provide the education, planning, and coaching that a financial advisor can. They should be seen as tools that complement traditional services, creating a comprehensive approach for millennial investors.
3. Be More Than Just a Financial Advisor
To connect with millennials, you need to be more than just a financial advisor. This generation expects engaging and informative content that addresses their immediate needs. Providing resources like content on student loans, IRAs, and topics indirectly related to finances builds trust and engagement.
4. Ditch the Dinner Seminars and Create Experiences Instead
Traditional financial advisor events like seminars and dinners aren’t enough to attract millennial investors. Younger clients want unique, experience-based events beyond financial planning. Hosting events like cooking classes, wine tastings, or fitness activities shows you understand their needs and expectations. These experiences promote interaction and relationship building, helping advisors and millennials create the rapport needed to build strong relationships.
5. Listen First, Advise Second
Millennials don’t want a speech on the benefits of financial planning; they want a conversation where they lead. Each generation has different buying habits and communication styles, so interacting with millennials the same way as older clients won’t work. Millennials need to be heard, which means letting them express their concerns first. Focusing on listening and understanding at the outset provides valuable information that can guide your advice.
6. Utilize Multimedia and Share Across Multiple Platforms
Millennials appreciate technology, so don’t just share blogs. Incorporate multimedia content like videos or vlogs across your platforms. Use your smartphone to record videos, add captions, and upload them to your website, blog, social media platforms, and email marketing. Sharing videos across multiple platforms maximizes exposure and engagement.
Client Website Examples
IWM Financial
IWM’s website is visually appealing and has a dedicated page for millennials, clearly outlining their services and addressing potential client questions.
Maleta Wealth Management
Maleta Wealth Management’s website directly explains why their firm is ideal for millennials, highlighting their unique offerings and easy-to-navigate design.
Acosta Wealth
Acosta Wealth addresses millennial concerns right on their homepage, explaining their financial planning process and offering solutions to potential issues.
Gottlieb Wealth Management
Gottlieb’s website is straightforward, making it easy for millennials to find information without much hassle.
Meyers Financial Services Inc.
Meyers Financial combines aesthetics with functionality, providing easily accessible information while standing out from other advisor websites.
