A report jointly published by Spectrum Group (a consulting and market research firm based in US) and Vanguard reveals that half of the young millionaires and nearly one-third of mass affluent (less than 35 years of age) want a response to an email in two hours or less. This implies that youngsters expect faster response through phone calls, emails, video chat and text.
The survey covered 1,500 mass affluent, 1,000 millionaire and 500 ultra-high net worth households in 2014. Although the research covered US residents, its findings could be relevant for India also.
The report shows how advisors can improve their client communication and meet the expectations of young clients.
With the rise in social media and texting as prominent ways to communicate, youngsters rely on instant communication. To match this pace, advisors must be flexible as well as available 24*7, suggest the report.
This is in contrast with mass affluent and millionaires above 35 years of age who expect advisors to reply by the next day.
When asked about the preference of texting with their financial advisors, 25% of millionaires and 18% of mass affluent (less than 35 years of age) say they have texted their advisors.
The report suggests that advisors should find out how younger investors would like to communicate with them and make an effort to accommodate their preferences.
Demonstrate your value
The survey also shows that young clients are more confident about their investments and want to see evidence by keeping track of the performance.
More than half of the millionaires (54%) and mass affluent (57%) say that they rely less on an advisor and make the most of the financial decisions without the assistance of an advisor.
The report recommends that advisors should have-in depth discussions with younger clients. If they are investing assets independently, advisors need to ask them their source of information/advice on investments and probe what influences their decisions.
When interacting with younger prospects, advisors must make sure to respect their confidence and offer your services as a compliment to their abilities. “Be less of an authoritarian and more of a partner,” suggests the report.
