It’s no secret that client acquisition is becoming more challenging. Consulting firm Aite Group recently found that 97% of wealth managers found this to be one of the most important factors contributing to long-term success.
It’s no secret that client acquisition is becoming more challenging. Consulting firm Aite Group recently found that 97% of wealth managers found this to be one of the most important factors contributing to long-term success. At the same time, McKinsey found that Generation X is responsible for only 8% of US advisor assets. This doesn’t even count Millenials, who will be the main beneficiaries of a $30 trillion transfer of wealth from their parents.
Given this state of affairs, it’s clear that advisors must take steps to attract younger clients. This will determine the future of the advisory industry. But how can this be done? The primary steps should come in the form of marketing and client communications.
First of all, personalization is key. Consumer companies like Amazon, Netflix and Spotify have gained their market-leading positions by offering highly personalized services. Amazon, for example, bases the appearance on your front page on your past purchases and search activity. Younger people who have grown up with this kind of personalized experience expect it across the board. That includes the client/advisor experience. Today expectations are such that every touchpoint should be personalized to provide a unique experience.
Brand consistency is also critical. According to the old model, potential clients would look at your web site to learn more about your services and your firm. As they moved from prospect to client, they would rely more heavily on the relationship rather than the web site. Now though, digitally proficient clients want to interact with you not only personally, but through blogs, social media and more. They expect consistent messaging across all of the touchpoints.
Younger clients also want a range of digital communications options available to them. Aite Group found that advisory practices that grew assets by 5% or more over the past 5 years used communications including instant messaging, video calls, and social media more than their competitors.
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Acquiring New, Younger Clients Requires a Transformation of These Marketing Tactics | Wealth Management