Gen-Y clients communicate differently and have different priorities. They prefer researching and gathering information in their own way before making any financial decisions. They are more tech-savvy and prefer communication over digital platforms. So how can you tap them?
A whitepaper by First Clearing (a US based financial solutions firm for IFAs) and Center for Generational Kinetics (a research consulting firm) on ‘Gen Y is ready to invest…Are you ready to advise them?’ gives recommendations to advisors on how to tap millennials and engage with them. The report says, “Gen Y brings the greatest lifetime value of any generation in the investment market place.” They are now entering the life phase where they are taking responsibility of their financial decisions. So, how can you make the most of this opportunity?
Although the survey was done in US, its findings are relevant for Indian advisors too.
Here’s how Gen Y differs from other generations:
- Communication: Gen Y relies more on technology and prefers texting over phone calls.
- Buying decisions: Gen Y prefers visiting online portals when in need of purchasing products and services. The survey shows that millennials do a background check of financial professionals online before even meeting them by checking out their social following and online profiles in particular. It shows that more than 50% of Gen Y clients use technology over taking recommendations from friends and family.
- Investment style: Interestingly, Gen Y clients follow a more conservative approach and despite their young age they are not comfortable with risk.
But, why do you need to reach out to Gen Y clients? Here are few reasons:
- Long term value: Gen Y clients are the youngest entrants and therefore have the longest investing future. Professionals who attract millennials can retain them for decades.
- No Advisor Yet: The study shows that on-field research indicates that many young clients have not selected the financial professionals they want to rely on over time. This is because they are not sure how to find the right professional they can trust. Also, they still feel young and may not feel a sense of urgency and they are not always sure that they have enough money to start investing.
- Millenials can you give strong referrals: Young clients can be a great referral source. “They are known for referring friends, colleagues and family members to resources they trust. In fact, this generation won’t just make a personal introduction to one person, they will tell all their 6,784 friends on Facebook,” states the study.
- Streamlined Communication — Finally, what Gen Y wants from a financial professional is easier, faster and cheaper to deliver than many professionals think. The key is to recognize their mind-set and give them what they most value. The survey states that young clients wants advisors to take them seriously and not see them a kid, to have visual illustrations of their investment options and to receive on-going updates through the communication channels they prefer (digital, social networks).
So how do you engage with these clients? Here are few action tips for you!
Convert your presentations and sales documents into a format Gen Y trusts and understands, with an emphasis on technology, quick information and visuals. The study shows that when young prospects go to any website, they are first drawn to videos, then photos and graphics and then bullet points. In short, this generation looks for information in a visual format. By switching your presentation to an interactive screen, you can continuously make an eye contact with them. It creates the interactive experience that Gen Y seeks and reduces the product papers or brochures that they dislike. “Transferring your presentation to a tech-driven experience also makes it easier to share with Gen Y via online conferencing, which is increasingly the method of choice,” shows the report.
Position yourself as an information resource rather than a financial professional. This means that offer to help and educate them first. “Gen Y loves to refer a resource but does not like to refer anyone seen as a salesperson. The easiest way to achieve this position is by asking Gen Y clients if they have ‘any friends you can help.’ They are also very responsive to informal Q&A sessions over lunch or young entrepreneur groups where you share mistakes to avoid and candidly answer financial questions,” says the research report. You can start this dialogue by going to your existing clientele who have Gen Y children and inviting them for coffee without their parents.
Adjust how you communicate to fit Gen Y’s communication style. This generation prefers text messages to phone calls and emails over handwritten thank you cards. They will check you out via social media before they ever meet you. Make sure you are easy to find on LinkedIn if you are not able to have a Facebook or Twitter account. What young prospects see about you online is what they believe to be true.
Click here to read the whitepaper
