1) Insight & Outlook
Insight & Outlook
10 Ways To Communicate Effectively With
Millennial Investors
Cultivating ties with younger investors may offer the potential to build loyalty
among clients who will be investing for decades to come.
As baby boomers start to retire en masse, the Millennial generation (also known as Generation Y) may represent
an attractive future growth opportunity for many financial advisors. Representing 86 million people between the
ages of 18 and 37, Millennials are America’s largest generation, larger even than the Baby Boom generation 1.
Although a recession-weakened economy has made it difficult for
some of the younger Millennials to find career-oriented jobs, this
generation already controls nearly 10% of U.S. wealth, according to
Cogent Research.2 Accenture estimates that they and their older
siblings will also inherit an estimated $30 trillion from their baby
boomer parents during the next three decades.3
Cam Marston, the founder of Generational Insights in Mobile, Ala.,
and author of The Gen-Savvy Financial Advisor, has studied this
massive age group closely over the past 15 years. “The most
important thing for an older financial advisor to remember about
Millennials is that they’re not like us,” says Marston. “They have
little interest in the dues you’ve paid or the legacy you’ve built with
your other clients. What concerns them most is how you will partner
with them to create a plan for their own future.”
To communicate effectively and connect emotionally with this
generation of young investors, Marston says advisors may want to
consider the following suggestions:
“Millennial investors have
little interest in the dues
you’ve paid or the legacy
you’ve built with your
other clients. What
concerns them most is
how you’ll partner with
them to create a plan for
their own future.”
—Cam Marston, founder
of Generational Insights
1. Be upfront.
The financial collapse of 2007-08, in conjunction with the Bernie Madoff scandal, may have fueled Millennials’
suspicions of the financial services industry, Marston says. To connect with them, you must establish yourself as
honest and trustworthy. “They will look up your name on Google®, Facebook®, and Twitter ® to decide whether
they trust you,” he explains. “Make sure all of your relevant information is available to them. Don’t hide
anything. They’ll look up what you tell them on the Internet to see if it’s true.”
2. Act your age.
Trying to affect a young, quirky, or hip manner can backfire with Millennials. They will respect you more,
Marston says, if you communicate in a straightforward way and demonstrate that you understand them and can
help them achieve their goals.
2) 3. Become a trusted resource.
In a recent survey of high-income, tech-savvy
investors by Accenture, 44% of 21- to 30-year-olds said
they were extremely interested in learning more about
investing4. Therefore, Marston says advisors may want
to consider positioning themselves as an unbiased
resource who will help clients educate themselves.
You may want to let clients know that they can text,
email, or call you without obligation anytime they
have a question. Your goal is to be seen as a trusted
guide who can help them make smart financial
decisions, says Marston.
4. Offer a customized solution.
“Millennials are uniquely individualistic within their
group of peers, odd as that may sound,” Marston says.
“They want what their friends have and what their
friends are doing, but with a unique twist.” That could
mean customizing a solution in some way, or creating
one just for them.
5. Self-esteem is everything.
Many Millennials grew up “protected, praised, and
programmed,” Marston says. Throughout their young
lives, some have been hovered over by “helicopter
parents” who constantly reinforced their self-esteem.
To build rapport, Marston says you may want to
recognize their individuality and accomplishments.
Let them know that you notice the individual style
they’ve expressed in some distinctive and striking
way.
6. Use peer “pressure.”
Marston’s research shows that Millennials put great
faith in peer-to-peer referrals, so you may want to
consider passing along snippets from texts, emails,
and positive comments (with permission) from
satisfied Millennial clients. If possible, Marston says
advisors may want to consider having prospects talk
with existing clients who share similar demographics.
7. Target the herd.
Millennials are highly influenced by – and loyal to –
their circle of friends, Marston says. “If you can get in
front of a group of them, they’ll likely think of you
when choosing an advisor,” he points out. “And if you
can identify the chief influencers in the group,
winning them over may go a long way toward
winning the approval of the others.”
8. Stake your reputation.
Manage your reputation carefully, especially online,
Marston says. Millennials will be acutely aware of any
experiences their peers have had with you, and they
may share their own impressions with friends and
acquaintances on social networks and other media.
Marston says it’s important to acknowledge this
reality so you can get out in front of it.
9. Don’t push it.
Marston cautions that Millennials generally don’t
respond well to a hard sell. That may be especially
true if your sales pitch represents an abrupt departure
from the low-key approach you used to engage them
and build a relationship. This may feel like “bait and
switch” to them.
10. Talk about them, not about yourself.
One of the essential elements in building a
relationship with Millennials, Marston says, is “to talk
about them and their future, not yourself and your
degrees and designations.” While this may require
changes in the way you deal with some of your
existing clients, “it’s like breaking in a new pair of
shoes,” says Marston. “At first it may be
uncomfortable, but over time you won’t even notice
it.”
The next a rticle in this series will exa mine ways you can leverage
technology to potentia lly build closer rela tionships with Millennia l
investors.
Learn More
For more insights into the habits of Millennial
investors, read the 2013 Fidelity® Millionaire Outlook
Executive Summary: Gen X/Y Millionaires Not Sitting
Idle.
3) For Investment Professional use only. Not for distribution to the public as sales material in any form.
1. Barron’s, “On The Rise,” April 29, 2013.
2. Anne Fallon, “Reaching Affluent Investors: A New Approach Needed for Gen Y,” Cogent Wealth Reports Thoughts blog 3/18/13.
3. “Generation D: An emerging and important investor segment,” Accenture, 2013.
4. Ibid.
The information contained herein is as of the date of its publication is subject to change, and general in nature. Such information is provided
for informational purposes only and should not be considered advice. Fidelity does not provide advice of any kind. This information is not
individualized and is not intended to serve as the primary or sole basis for your decisions as there may be other factors you should consider.
Cam Marston in an independent speaker, unaffiliated with Fidelity Investments, and does not make representations on behalf of Fidelity. Cam
Marston’s input herein does not suggest a recommendation or endorsement by Fidelity. The information provided by Cam Marston is subject
to change. There is no form of legal partnership, agency, affiliation, or similar relationship between Cam Marston and Fidelity Investments,
nor is such a relationship created or implied by the information herein.
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