Staying updated with the latest industry trends is key for financial advisors looking to get more clients. Big changes are coming, and you’ll need to be ready.
A study by Cerulli Associates shared some serious news. By 2045 about $72.6 trillion will change hands from the Baby Boomers to the Millennials. This isn't just a huge number—it's a sign for financial advisors to rethink how they find new clients.
Reaching younger people might be one of the biggest shifts in the finance world we've ever seen. Lead generation for financial advisors will have to change with it.
But, winning over young clients isn't just about offering them financial advice. A traditional prospecting strategy might not work with younger folks who grew up using the internet. Advisors will need a new marketing strategy to reach them.
In order to do that, you’ll have to understand what millennials like, how they talk, and what they value.
If you want to offer financial planning services to a demographic that’s poised to take over as holding the most wealth, you’ll need to learn to connect with a millennial audience.
Baby Boomer vs. Millennial Finance
Millennials and Baby Boomers are two generations with markedly different financial goals, buying habits, and mindsets. Understanding this distinction will help you succeed in attracting millennial clients.
Baby Boomers, having grown up in a post-war era, prioritize stability and long-term savings. They're accustomed to face-to-face interactions and tend to value personalized services over digital encounters.
To many millennials, however, having to make an actual phone call is basically torture. They prefer digital communications, and rely on social media platforms for recommendations, reviews, and engagement. This may make them more receptive to email marketing and online campaigns than their predecessors. However, their tolerance for long-form communication is basically zero.
This divergence is why the best sales training for financial advisors today emphasizes understanding these generational nuances. It's no longer about a one-size-fits-all approach. Advisors looking to engage prospective clients from the Millennial cohort absolutely must integrate modern communication tools into their strategy.
Engaging Millennial Clients
Prospecting the millennial generation requires a shift from traditional approaches. Here’s a few pieces of advice to maximize financial advisor lead generation amongst millennials.
Leverage Digital Platforms
Millennials spend significant time online, not just for social interaction but also for education and information. When creating content for digital platforms, focus on providing value.
Millennials absolutely love infographics, short video clips, and podcasts. Use these platforms to provide tips, advice, and insight. It will help attract clients much more effectively than anything even the best financial advisor sales training has taught you.
Cold calling definitely still has its place. However, building a strong online presence is essential for securing leads for financial advisors targeting millennials.
Webinars and Workshops
Traditional long-form educational sessions might not be the best fit for a generation notorious for their short attention spans. Instead, break down topics into bite-sized modules.
Interactive Q&A sessions, polls, and real-life examples can also help keep their attention. Remember, millennials value genuine engagement and being able to relate. So, ensure your presentations resonate with their real-life scenarios and concerns about financial services.
Interactive Tools
Providing millennials with tools where they can actively participate or visualize their financial scenarios can be a game-changer. Consider offering budgeting apps, investment calculators, or even interactive quizzes that can provide personalized financial advice based on their responses. Such tools not only educate but also empower them to take charge of their finances. This aligns perfectly with the self-driven nature of this generation.
What Millennials are Looking For
Millennials have distinct preferences for financial services. Catering to these preferences is important for financial professionals keen on tapping into this market segment.
Debt Management and Student Loans
Now that student loan payments are restarting, many millennials are sweating. What’s more, the average millennial has nearly $6,000 in credit card debt.
Offering services that focus on creating effective debt management strategies can be immensely appealing. These can range from refinancing options to budgeting plans, ensuring they can manage and reduce their debts efficiently.
Retirement Planning
While retirement might seem far away for this younger generation, they are keenly aware of the challenges that lie ahead. (Especially given the uncertainties surrounding programs like Social Security.) Tailored retirement plans, which emphasize individual goals rather than generic strategies, can resonate deeply with them.
Digital Financial Tools
Millennials love apps (both on a menu and on their phones). If you can allow them to access, monitor, and update their accounts from their phones, they’ll love it.
Investment in Sustainable Ventures
This generation is passionate about social causes and environmental friendliness. Financial products or investment opportunities that align with their values—like ESG funds—can attract their attention.
By aligning services with the needs and values of millennials, financial advisors can generate leads from a demographic poised to be the major wealth holders in the near future. (Your existing clients might even appreciate it too.)
What NOT to do when Prospecting for Millennial Clients
While millennials might wait for hours in line to get a bespoke piece of avocado toast, certain things that will send them running for the hills. Avoid these pitfalls if you hope to attract clients from this generation:
- Over-automation: Technology is key, but millennials value genuine human interaction. Avoid over-relying on automated messages, which can feel impersonal.
- Pushy Sales Tactics: Trust and understanding are paramount. Avoid aggressive sales tactics or overwhelming them with frequent cold calls.
- Overloading with Information: Respect their shorter attention spans. Long-winded pitches or dense content can lose their interest quickly. Be concise and engaging.
- Assuming One-Size-Fits-All: The millennial generation is diverse. Avoid blanket strategies and take the time to recognize individual needs.
- Neglecting Social Media: This platform is not just about technology but genuine engagement. Failing to utilize or misusing social media can cost potential leads.
Connecting with millennials means understanding their unique preferences and challenges. Navigating these effectively can lead to loyal, long-term clients.
Prepare Yourself to Succeed
In the upcoming years, a massive shift in wealth will be seen, with Millennials taking the lead. For financial advisors, this signals a time to adapt and evolve. A solid sales training program can bridge the gap, offering tools to better understand and engage these younger potential clients.
It's not just about keeping up with the times but seizing the opportunity for growth. By understanding Millennials and adjusting our approach, you can tap into this emerging market effectively.
That’s where Planswell can be of service to you. We’ve been perfecting the art of marketing financial services to a variety of demographics for years, millennials included.
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