As immigration now accounts for most of Canada’s population growth, our cultural landscape is changing. Financial advisors must now adapt to a multicultural marketplace, says Alan Middleton, executive director with the Schulich Executive Education Centre at York University in Toronto.
“Following demographic trends is important for advisors,” Middleton says. “Particularly because it can have an impact on how you connect with new clients to grow your business.”
Middleton offers some tips on how you can build your business by serving clients from a variety of cultural backgrounds:
> Know that one size does not fit all
When beginning to work with different cultural communities, it is essential to understand various cultural subtleties.
For example, Middleton says, many Chinese clients are often conservative investors who prefer to hold investments for long periods.
“[This strategy] might not have huge returns but it is low-risk and dependable,” Middleton says. “So, those investors feel safe.”
Keep in mind that a common trait among members of any given group does not necessarily apply to everyone within that community. Avoid relying on stereotypes and broad generalizations about any group, Middleton says. Instead, keep an open mind.
> Build a marketing plan
Once you have decided which groups you would like to work with, take the time to learn about the customs and traditions that are important in these communities. Find out how certain groups relate to money and other life issues such as family and education.
Create a marketing plan that takes into consideration what you have learned about your target market and how your products and services can relate to their goals.
Many financial services firms have been creating more multicultural marketing materials in recent years. For example, they offer brochures in an array of languages.
While that can be helpful, Middleton says, you should custom build your own materials to make sure your message is on point.
Avoid doing your own translations, Middleton warns. The slightest mistake can be disastrous.
> Go in for the long haul
Building trust within a new group takes time. Make every effort to be visible within this community, but don’t expect new business right away.
For example, you might attend cultural festivals or volunteer with boards of community groups.
“It’s all about taking a grassroots approach to build that trust,” says Vinnie Combow, president of Ethnimark Advertising Inc. in Vancouver, who immigrated to Canada from Punjab, India, in 1972.
Take your time to get involved in the community and make a sincere effort to get to know its members.
> Don’t be shy
The prospect of being an advisor in a different cultural market may seem daunting, Middleton says, but it shouldn’t.
Whether you are working with a first-generation family from Sri Lanka or a family with distant Italian roots, many of the same skills apply.
“Be patient, learn and listen,” Middleton says. “Do what good advisors do. That’s how you will earn your way in and become a ‘trusted outsider’.”