Are you ready for the $30 trillion wealth transfer? This great wealth shift from Boomers to their heirs has officially begun and will continue over the next few decades—is your business prepared? As an advisory firm, these are your future clients, so you better get on their radar stat.
Young people have unplugged the landline, and they are always online. They use social media to get their daily news and communicate with those closest to them instantaneously. They check their emails less often, are slower to reply, and answer phone calls on the run. They are the mobile generation.
The problem with this? 90%1 of millennials will leave their parents’ advisor. And over 60%2 of advisory firms do not have a plan in place to court these millennials; this includes not having a social strategy. Cerulli Associates reported that while 43% of RIAs do use social media at least weekly, 37% still do not use social media outlets at all. Can you relate? If yes, then keep your ears to the ground. You need to be where your clients are, and with the advent of social media and other attractive technologies, where they are has changed significantly.
As I laid out in Part 1 of this blog series, “Unlikely Friendship: Social Media and Compliance,” to get started using social networks, you first must comply with federal requirements and regulations. They are there to safeguard you and limit any potential risk associated with using social media.
Once you’ve conquered those, it’s time to make a splash on social networks, where your audience lives day in and day out. Step 1—get on LinkedIn. Half of LinkedIn users are 25-40 years old so you should be effectively using this channel.3 You can make a great first impression by getting your profile in tip-top shape, and then begin to connect with your audience.
To do this, I’ve created a quick and easy checklist to keep in mind. I call this the 5 Social Be’s:
- Be Relatable – Are you “listening” to what your audience is talking about and posting and/or conversing in a professional and beneficial manner?
- Be Relevant – Are you up with the latest trends of the financial industry?
- Be Reliable – Your future clients want to know you can be trusted. Are you offering sound information?
- Be Proactive – Don’t wait for them to come to you. Are you a member of relevant groups? Do you participate when advantageous to you and your audience?
- Be Timely – Are you reaching out to your target audience at the right time? Test various messages and language, measure the results you receive, and repeat both steps if necessary to nail down optimal timing.
Millennials are the most educated, confident, globally-mobile, and technologically aware investors. Don’t be discouraged by this tech-savvy generation—these future clients are not unattainable. Connecting with them on social networks can help you find new business, close more deals, and drive customer loyalty.
Not to mention, advisors with higher the numbers of younger clients have a better shot at long-term growth. PriceMetrix reported that the fastest growing books of advisors contain 30% younger clients (under age 45) as opposed to the slowest growing books containing 7% younger clients. In books with a higher number of younger clients, return on assets was found to be 25% higher. So, which book do you want? Keep your business thriving by preparing for the ‘Great Transfer’ before it’s too late.
Looking for more? Social media and compliance experts Joanna Belbey and Phil Gerbsyshak of Actiance will give you additional tips and tricks on attracting the next generation via social networks. View the webinar.
Check back in three weeks for Part 3 of this blog series on how to attract and retain top talent via social media to drive growth for your advisory firm.
Miguel Rodriguez leads Advent’s social media program. In his role, Miguel is responsible for Advent’s social presence including Twitter, Facebook, LinkedIn, YouTube, and Advent’s blog. Follow Miguel on Twitter.