How is Your RIA Firm Connecting with the Next Generation of Clients?

RIA firms often are focused on serving existing Baby Boomer (and older) clients and winning referrals from their peers that they may be overlooking a source of great potential growth – the next generation of clients. Earning their business may require some RIAs to adjust the services they provide, how they provide them and how they reach younger audiences. The RIAs who put in the time and effort to attract Generation X and Millennial clients (and even older members of Generation Z) will open the door to gaining clients who can be with them for decades to come.

What should RIA firms do to connect with the next generation of clients? Here are four key areas to consider.

Technology Matters

The technology you invested in during the pandemic to serve existing clients remotely will be an integral part of working with younger clients. Some Gen Xers, most Millennials and all Gen Zers grew up with technology and incorporate it into all facets of their lives. Clients in these demographics may be busy raising kids, running businesses, and/or caring for aging parents, so they appreciate the convenience of video meetings instead of meeting with an advisor in person.

Leverage Existing Relationships

Do you ask your older clients to bring their adult children to meetings? These adult children could become a new client, especially if they aren’t currently working with a financial advisor. Research found that just 20 percent of Millennials have ever met their parents’ financial advisor. Plus, more than half said they would or might consider using their parents’ financial advisor. If you have a younger advisor, include them in the meeting. Developing a rapport with your existing clients’ children, along with a recommendation from their parents, puts you in a great spot to win their business when they are ready to use an advisor.

Change Up Your Communications

Younger clients want more frequent communications and may appreciate general financial literacy information. Most Millennials prefer to receive updates from their financial advisor at least monthly whereas more than half of Baby Boomers are content with monthly or even less frequent communications. In addition, personalization is key to reaching new clients of all ages – 84% of people say personalized content is very or extremely important when working with an advisor. Advisors should be prepared when courting younger clients to increase the frequency of their communications to these demos and personalize those communications.

Have a Strong Online Presence

Many people of all ages will reach out to a financial advisor because of a recommendation; however, younger people are also comfortable with searching for one online or reaching out to someone they saw on social media. When a person comes to your website, or is forwarded your email, you want to be sure you are putting your best foot forward when it comes to how you present your firm and how you can help.

Do you want to tap into younger audiences to grow your firm? Our marketing solutions are designed to help RIAs target their ideal clients. Contact us today to learn more. You can also download our eBook designed to help RIAs accelerate growth.