They're young, they're sharp and they present a huge opportunity for advisers.
Let's face it, the majority of people in the financial services industry are starting to get up there in age. This fact was painfully brought to my attention by one of my coaching clients who told me he was having a challenge getting in front of “older” prospects. When I asked him to define older for me, his response was, “You know, like 35!”
While I stand in my conviction that 35 is not old (nor is 45, 55, or 65) it did bring to light the fact that most of the industry — even young advisers — is focused almost entirely on doing business with baby boomers and Gen Xers. While this is an excellent strategy, we're bypassing quite an opportunity.
While millennials (currently at ages 18 to 34) have been labeled by Time magazine as the “Me Me Me Generation,” due to their perceived sense of narcissism and entitlement, this cohort also possesses some extremely valuable qualities. They are entrepreneurial in spirit, and desire to leave their mark on the world. They are well informed and extremely tech-savvy. They have a desire to build community and are continually seeking information, much of it online. And, perhaps most importantly for advisers, a number of them are making some serious money — with even more poised to do so in the very near future.
If you want to tap into this market, here are the things to consider:
Think in terms of “community” instead of “life stage.” Millennials are very different from previous generations, and, because of this, often are misunderstood. “Adulthood” doesn't look quite the same as it did in generations past. These individuals grew up with far more choices and options than the rest of us, and due to that, there is no single path to being a grown-up. Due to the economy and other contributing factors, getting a job, getting married, and buying a house all look different to millennials. It is not as simple as it once was in following that narrow path to adulthood. Millennials want to do things differently, to forge their own way. It is important to realize this when working with this group.
Instead of speaking to different “life stages” as we often do (just got married, just had a baby, changed jobs, etc.), think in terms of “community.” What social causes are they drawn to that you also connect with? What activities or hobbies do they enjoy? What are their interests outside of their career?
I find my younger adviser clients are great at doing this, and subsequently get a lot of business from the relationships they build when they aren't even trying. The key is to connect with millennials on a truly genuine level around something you both have a passion for.
Create and share relevant content. LinkedIn's “Affluent Millennial Opportunity” study found 81% of affluent millennials use social media to obtain information about financial products and services, compared to just 44% of Gen Xers. They are a population who solve problems by researching them online, and that make posting, tweeting and retweeting a critical part of each day. If you work with millennials, you have to — let me repeat, have to — create and share content they find relevant and engaging. Carve out time each day to do this.
Focus on engagement. More than prior generations, Millennials rely heavily on recommendations from their friends and peers, which means not only do you need to educate and engage, you also need to focus on building fans or brand ambassadors who recommend and refer you, and who proactively share with others the value you can bring them.
You can educate and share until your heart's content, but if you don't engage your audience and to get them talking (positively) about you online and off, you will become nothing more than mere noise in their already crowded digital world.
Don't ignore mobile marketing. Millennials live and breathe by their smartphones. While most advisory firms aren't ready to launch big mobile marketing campaigns (although the ones who have are seeing tremendous success), there are some basics to tackle.
Is your website optimized for mobile? Do your landing pages load quickly, or are too many graphics slowing down the load time? Do you have a call to action, allowing visitors to your site to easily connect and engage with you?
Millennials are a unique and potentially prosperous generation of clients to add to an adviser's practice. It's time to bring them into the mix.
Kristin Andree is president of Andree Media & Consulting.
