Learn millennials’ personality traits

Today’s young investors see the world differently than a typical 55-year-old financial adviser. Whether it is a result of receiving trophies for eighth-place finishes or being strapped into a five-point harness (with adjacent DVD player) for road trips as children, millennials (born between 1980 and 2000) have an outlook and manner that may seem alien to advisers from older generations.

Gallons of ink have been spilled on millennials, now the largest generation in U.S. history, and what they think of everything, including money, savings, planners and retirement. However, little has been written on how to connect with them as clients.

Should you invite them to lunch or just text them? Likewise, how do you avoid turning them off?

If you are under 30, you likely know what to do. If you are over 30, here are eight tips for connecting with millennials:

EIGHT TIPS

Work the herd. Millennials are herd animals. They are social beings and much more at ease in a crowd. Invite a big group of them to learn about the benefits of what you do. Market it on your website. Find a few that can attract a few more. Feed them lunch. One-on-one doesn’t work as well with this generation — work the herd.

Don’t sell. Emphasize that you aren’t going to sell; you are going to educate. “Financial planning can be a tricky path,” you should say. “You need to know how to find an adviser and a plan that is right for your future.” Educate and let them talk when they want to. Let them answer one another’s questions. Remember, it is about them, not you. You want to be the welcoming expert, not the bloviating salesman.

Future, not past. Many planners want to yammer on about their past. They deliver a very self-serving history lesson that starts out something like, “Let me tell you about me, my background, our firm, how much money we manage, and where we’ve come from.” This is the wrong approach with millennials. Your focus must be on their future, not your past. Say to them, “Here’s what’s going to happen to you immediately and in the future when you start making some life-changing planning decisions.” Fellow baby boomers will be interested in your history and tenure, but millennials won’t.

Unique, just like everyone else. This generation finds safety in numbers, but you will find that they consider themselves unique. They have always been told that they are special. Make them feel that way. Notice or learn what makes them unique individuals. Say, “I have met many of your peers. What makes you different?” Let them know you appreciate their individuality.

Welcome casual, but don’t try to fake it. Be yourself. Don’t attempt to feign youth or coolness if you have neither. By the same token, accept and welcome what walks through your door, complete with baggy pants, tattoos (40% of millennials have them) and piercings. But don’t try to fake youth yourself. Millennials have built-in phony detectors. A lifetime of ads and pitches has made them wary of imposters. Be yourself and let millennials do the same.

Time versus relationships. At this point, the millennials are more focused on the value of their time than the value of their portfolios. You may hear, “I don’t think I have time for a meeting. Can you e-mail me something?” Say, “That is fine” and send it over. Customize the document, outline the next steps and follow up.

Mom and dad. The millennials and their parents share information like no generation ever has. Don’t be surprised to have mom or dad call you or want to attend a meeting with their child to meet you. Welcome their involvement and treat them as co-clients. Don’t shun the parents or you will lose their kids, too.

Referrals. Ask for their support in spreading the word about you in social media and online reviews. All you want is a quick plug, a “like” on your Facebook page or wherever appropriate. Let them lead their pack to you. Word of mouth is super, and today, word of mouth is happening online.

The millennial generation already has a spending power of $1.5 trillion. Getting out in front of this massive generation is essential but will require some new tactics.

The effort is worth it, though, in order to connect with this indispensable, if somewhat alien, demographic as it arcs toward its earning and investing peak.

Cam Marston (cam@generational insights.com) is president of Generational Insights, which studies demographics, population and generational trends.