Providing products and services to millennials can be challenging for almost any industry, but the financial services sector can have a particularly difficult time. Time Magazine defined millennials as those born between 1980 and 2000 and early exposure to growing and always connected technologies have made millennials a more difficult group to reach. Millennials also represent a significant opportunity.
Here are some of the most important things financial advisors need to know about millennials.
To connect with millennials, you first must find them. Traditional marketing methods are less likely to reach and resonate with a millennial audience. Instead of TV, radio, or print advertising, marketers must utilize innovative ways to reach potential customers.
When it comes to marketing to millennials, mobile is king. Most millennials consume some, if not most, of their media through their mobile devices. Some financial institutions have created specific apps for this very reason. Many millennials already manage important things through apps on their phones, so it makes sense that they would add banking and financial services to this mix. Having mobile content like an app is a convenient way to enter millennials’ lives by meeting them where they already are.
Other potential millennial-reaching advertising includes social media channels where financial service providers offer resources to help millennials through their financial journey or podcast advertising, which is not only usually less salesy-sounding than radio ads but also builds on familiarity and trust that the listener has with the podcast.
Solutions, Not Sales
One of the most important things financial advisors need to know about millennials is that millennials don’t want to be sold to. What’s more important to them are solutions. This means that financial advisors must be good at identifying the problems that are unique to millennials as well as how they can offer a solution to those problems.
There must be a greater focus on getting to know customers including asking questions about their goals, concerns, and habits. Working with millennials involves building trust and establishing a relationship so they are sure you understand their needs.
One way to show you are interested in offering solutions is by creating content specific to the things millennials want to know more about. This content can be hosted on a blog, on a mobile app, or in a series of short educational emails. Interactive content or video content often performs well with millennials, and these mediums can be used to educate consumers and offer financial advice for millennials on issues such as savings accounts, retirement accounts, budgeting, and choosing the best credit card for their needs.
It’s no longer safe to assume that working-age adults are only interested in retirement and investments. Financial planning for millennials can include:
- Debt management, including student loans
- Saving for travel
- Buying a home
- Budgeting for a wedding or for starting a family
- Starting an education fund for a child
Having personalized financial advice for millennials will gain their trust and loyalty and potentially start a relationship that will last into retirement and estate planning. When thinking about the most important things financial advisors need to know about millennials, it’s crucial to remember that while the demographic shares many similarities, they all want to be treated as individuals. Creativity, innovation, and personalization are key in millennial markets. You can start expanding your millennial client base by focusing on their specific financial planning needs and working as a team with your clients.