Today’s Biggest Opportunities in the Financial Services Industry (PART 2)

Branding, Marketing

Creating a Marketing Plan for Retaining Gen-Xers and Millennial Clients During ‘The Great Wealth Transfer’

In my previous blog, I shared two of what I consider to be the biggest opportunities for the financial industry in 2019, including committing to mastering your craft and preparing for sales, mergers and acquisitions. The third area creating the biggest challenge and thus opportunity: How to retain assets under management as wealth starts to transfer from Boomers to their heirs.

Last fall, Cerulli Associates released a new study that the biggest wealth transfer in history is about to happen and is now anticipated to be more than double previous projections, estimated at $68 trillion in motion over the next 25 years. The research and consulting firm’s report, U.S. High-Net-Worth and Ultrahigh-Net-Worth Markets 2018: Shifting Demographics of Private Wealth, projects that Baby Boomers will account for 70% of the givers, and Gen Xers the primary beneficiaries (almost 60%), over the next two and a half decades.


How Can You Retain Assets with Future Generations—The Content

It all starts with having the right messaging. Firms that are able to adapt to the changing needs of Boomers as well as engage their children and heirs will be the most successful in the coming years. As the Cerulli report shared, most high net worth clients are uncomfortable and/or inexperienced talking about multigenerational wealth strategies, and they’re the ones who need the most advanced planning support.

So, how can you help? Start the conversation. Most importantly, remember that communication is a process, not a singular event. Keep in mind the AIDA marketing principle to identify where your clients are in the buyer journey—Attention, Interest, Desire, Action:

  • Attention (eyes & ears): Create videos, one-pagers, educational and social events and other group learning opportunities. Introduce the challenges, common mistakes and planning needs of passing and protecting wealth between generations.
  • Interest (head): While you may have clients that say they plan to spend their money or are less concerned about what they leave behind, once educated about what will happen to their assets without a plan, they may start to sing a different tune.
  • Desire (heart): Once your clients are aware of and understand the need for legacy planning, you will have the opportunity for more successful individual conversations. Help your clients identify their concerns and listen to their desires for what legacy means to them. It is not until they begin to truly accept that their assets will be transferring at some point—and that they do need a plan—that you will be able to successfully discuss how you can be of help.
  • Action (feet): It will require patience and may not be a linear progression, but after taking the time to complete the above steps correctly, your clients will be educated, interested and motivated to take action, from collaborating with an estate planning attorney to introducing you to their heirs. Keep in mind, once you do have the opportunity to meet the family, they are starting at the top of this buyer journey. You will need to take the time to educate and connect with their individual needs and concerns through a similar process in order to build a relationship and retain them as a long-term client.

For more tips on the types of marketing tools that can support each of these steps in the communication process, check out my past blog “How to Deliver the Right Content, To the Right People, At the Right Time.”

How Can You Retain Assets with Future Generations—The Channels

While Gen-X (age 38-52) and Millennial (age 17-37) have their notable differences to consider as you shape the messaging of your efforts, digital marketing will play an increasingly important role as channels to communicate with both groups:

  • Voice search  (using smart speakers, SIRI and similar) is a huge new wave of traffic hitting your website, with projections by 2020 of up to 50% of all search will be done by voice. This will make how-to’s, FAQs and including long, specific phrases in your website copy increasingly important.
  • Chatbots and live chat will continue to become more popular allowing users to avoid hold times and to enable multi-tasking while addressing their questions. While it may seem impersonal, these tools can provide a powerful new way to start a conversation and increase conversions for your business.
  • Video will continue to draw and engage more traffic and be a powerful tool, especially to help simplify complex messages for financial professionals (for example, check out this great explainer video from CNBC of planning tips for The Great Wealth Transfer.)

Despite these digital trends and the many headlines about robo-advice taking over, these future generations value a blend of both digital and human experience and are still seeking personal financial advice, particularly relationships based on transparency and education. Keep in mind that of these digital marketing technologies have one thing in common—they are conversational marketing. The biggest mistake financial advisors make in digital marketing is treating these as broadcast systems to talk at someone. They may be newer platforms, but the heart of each of these channels is talking to and with an individual. The more personal and relevant, the more engaged and successful they will be for your business.

Are You Ready to Capitalize on The Next Big Thing in Your Market?

AdvisorPR is a boutique agency that specializes in working with the thought-leaders of the financial industry, taking your vision and adding fuel to your fire. Whether you need an educated sounding board for your special projects or to craft specialty marketing materials to support your endeavors, we are here to help communicate your game-changing ideas from concept to implementation. Contact us today to start the conversation.

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