Few financial advisors can afford to ignore the millennial generation. Second only to baby boomers in terms of size, millennials — those born between 1980 and 2000 — are a powerful demographic force. In fact, the bulk of millennials will be in the midst of their earning years over the next decade or so, and they’re going to need financial advice to help build up their nest eggs and plan for retirement.
“This is a very important generation to understand,” says Sara MacQueen, marketing consultant and founder with Big Fish Media in St. John.
Are you prepared to work with members of this important market? Here are four things you should know about millennials to help you attract and retain them as clients:
1. They crave connection
The popularity of social media is a testament to millennials’ need to share. To connect with this group, MacQueen says, a social media presence is critical. And the notion of “oversharing” is not part of this generation’s psyche.
While you must maintain a professional image, a few select details about your personal interests — a picture with your dog or your family, for example — will likely have more success with this audience, says MacQueen: “If all you ever talk about is business, they won’t feel connected to you as a person.”
2. Social issues are important to them
This generation learned the “three Rs” of environmentalism alongside nursery rhymes, so social issues play a big role in their lives. Do not downplay your charitable efforts with this group, MacQueen says.
“If you’re an advisor who does volunteer work or donates money to certain causes,” she says, “don’t be afraid to talk about it.”
Socially responsible investments also may hold a particular appeal to this group.
3. They insist on convenience
Some say this generation is addicted to instant gratification. While that may or may not be true, MacQueen says, they do expect efficiency. Millennials are accustomed to technology making things faster and easier, and they balk when a business demands more time or effort from them. Face-to-face meetings, for example, can be as unwelcome to millennials as standing in line to see a bank teller.
That is why it’s important to remain flexible when dealing with clients in this demographic. The more efficiently a transaction can happen, the better, MacQueen says: “Don’t make doing business with you complicated or full of unnecessary steps.”
4. Loyalty matters
Another criticism often levelled at millennials is that they have short attention spans and can be fickle. Yet research indicates this isn’t true when it comes to consumer behaviour, according to MacQueen. “When they like you,” she says, “they are very loyal.”
The key to appealing to this loyalty is through social media. This doesn’t mean using all possible social media platforms, MacQueen says. Pick one or two — and do them well. Take an active and vibrant approach to communicating with clients and prospects online. There’s no sense having a Facebook page but never updating it or being on Twitter and not participating.
“If you aren’t found on any social media sites, you look out of touch,” MacQueen says. “But it looks worse to be found not doing it right.”