An Open Letter to Advisory Firms Losing the Millennial Marketing Battle

An Open Letter to Advisory Firms Losing the Millennial Marketing Battle

Written by: 

Dear Adviser,

I’ve spent my whole life as a millennial, or at least as long as the generational classification has existed, but you haven’t seemed to notice. Your ads and your marketing materials prove you don’t understand me.

My financial decisions don’t make sense to you, because you don’t understand the context in which they were made. You probably don’t understand why I’ll spend $50 on a bottle of wine, $100 on dinner on Saturday night and $75 on brunch the next morning, but I won’t pay $80 per month for cable. While logic would suggest that the former expenditures dictate the latter deficit, the real explanation is that substitute goods are available.

I grew up with Napster. I helped kill fye and Sam Goody. Why? Because it was free and easy. I could download any album or movie for free in a matter of minutes. So when it comes to paying for cable, it’s not that I can’t afford it – it’s that I don’t value the service at the market rate. I prefer cheaper alternatives that offer similar value. But, I can’t get free wine and I have yet to find a low-cost, fine dining experience.

Further compounding my preference for value is the fact that, for the majority of my adult life, I’ve had the ability to instantly check prices on my smartphone before I buy. I have no brand loyalty. I’m not above walking out of a store when I pull out my phone and find a better price online. More often than not, I can wait for two-day shipping.

Adviser translation: If you don’t have financial products or advice that add value for me, I’m going to buy low-cost ETFs or mutual funds. Passive funds are cheap, easy and readily available. Vanguard is Napster for advisers. If you can’t give me value above what I pay for low-cost funds, then I have no reason to buy your product. And remember  if there are substitute goods available, I don’t need to go to your competitor’s office or request a prospectus by mail to find the costs. I can find fees on my phone while I sit in your office. If I find a better offer, I won’t hesitate to walk out of your office and buy lower cost funds on my smartphone from the parking lot. Maybe that makes me a sophisticated investor, or maybe it’s become too easy not to be.

Yet, value is only one piece of the puzzle when it comes to understanding me. Advisers also need to recognize that I have a general distrust of all things Wall Street. According to a 2016 survey by Harvard University Institute of Politics, I’m not alone. In fact, only 11 percent of millennials surveyed said that they trust Wall Street to do the right thing all or most of the time. Even more alarming is that 42 percent of millennials said they never trust Wall Street to do the right thing.

The explanation is simple. We watched as our parents profited from the Clinton Era expansion in the 90s, only to get crushed in the Dot Com bubble. By the time that 9/11 cleared and conditions started to feel “normal” again, the housing crisis lead to the Great Financial Crisis. Consequently, the market narrative throughout the entire duration of my memory has been dominated by two major asset bubbles. Today, with many indices at all-time highs again, I can’t help but worry that I will end up in the same boat as my parents – worrying that I will be forced to delay retirement because the latest asset bubble coincided with my retirement plans, leaving me at a loss while Wall Street profits.

Adviser translation: I understand that investing has risks. I get that markets are cyclical. But advisers need to understand that I’m more skeptical of the people involved in the financial industry than the actual products they sell. This doesn’t mean that I believe everyone working in finance is inherently untrustworthy, but my cynicism is the manifestation of an availability bias that skews my default sentiment toward an overemphasis on the outcomes of recent events, namely the most recent financial crisis. I’m looking for an adviser who presents genuineness from the very first second. There are no “genuine” mutual funds or ETFs, but there are genuine people. I want to know that my money is being managed by people who only have my best interest in mind. As soon as there is any question about intention, you’ve lost my attention. One of the best ways to earn my trust is transparency. Performance-based fee structures can also help convince me that our incentives are aligned. Most importantly, I want an adviser who is upfront and articulate about where they add value and where they do not.

My final suggestion is that you stop broadly catering your marketing efforts to millennials. I was born in 1986. I had to yell, “Mom, hang up the phone! I’m on the internet,” until the early 2000s when we finally got DSL. I didn’t get a cell phone until I was in high school. And, yes, my classmates were amazed that my Nokia 5110 had snake.

But what about the kid born in 1999? They never saw a bag phone. Fax was dead before they ever used it to order lunch. They grew up on smart phones and broadband internet and have never heard the sound of dial up router. That fact alone helps explain why you won’t find me regularly checking Instagram or Snapchat, but many of my younger millennial brethren use those platforms incessantly.

Adviser Translation: Millennials are the largest and most diverse generation in history. If you look at millennials as a homogenous group, you will miss your target because your message will lack nuance and personality. I’ve worked with many advisers who think they are well positioned to attract a younger client base simply because “they’re on social media.” The reality is that the vast majority of brands don’t get traction simply by posting on Facebook a few times per week. If you’re going to stand out, you need to start with a more specific targeted audience. Take time to understand our motivations. They probably aren’t that different from your own motivations. Keep in mind that you experienced the last 20 years, but for millennials, the last 20 years was their only experience.

The bottom line for advisers who want to market to millennials is that context always matters. Gurus and marketers throw around buzzwords like “authenticity” and “influencers,” but all too often they overgeneralize the target group and fail to integrate the experiences that motivate behavior.

To avoid these pitfalls, pick a specific group where you feel you can add value. For example, target “single, college educated, urban, females, between the ages of 27 and 31.” Avoid weak target groups like “millennials with retirement savings who want help investing.”

Once you have an audience, find a way to state your value proposition that appeals to it. If you can’t state your value proposition in a single tweet and justify why it is particularly appealing to your specific target audience, you need to go back to the drawing board.

But I worry that great marketing might not be enough. The savviest advisers are already demonstrating their value to millennials. They may not be using the same methods and business models, but they are making an effort to build trust with new audiences.

Adviser translation: Some firms are offering a robo adviser to the children of existing clients. The idea is simple – get kids hooked on investing early by giving them an early stake in their financial future. In doing so, advisers are building trust by demonstrating the benefits of investing. And what better way to tap into your existing client network? Also using technology to strengthen client relationships is United Capital’s Financial Life Management. The product is a suite of applications that advisers can use to shift the conversation from “What financial products fit a client’s risk profile?” to “What life choices matter most to the client?” This approach builds genuine client relationships and incorporates gamification elements that make the process feel more like deep self-reflection and less of an arduous chore. Finally, there are advisers who are attracting millennial clients by offering flat fee financial advice. XY Planning Network is one way that advisers can tap into this market. Again, the goal is building trust with potential clients early. For advisers, giving up minimums and commissions today could mean a much larger client base tomorrow.

The key seems to be offering millennials the tools to start investing today, while maintaining a relationship so that you’re first in line when they have more complicated financial needs in the future.

If you can digest all of that, you’re well on your way to better understanding me and having a shot at being my advisor.



Joe Anthony
Public Relations
Twitter Email

Joe Anthony is a PR Strategist with 12 years experience in public relations and financial communications. He is responsible for leading the agency's financial services PR unit ... Click for full bio

Capturing the Attention of Millennials: Be Relevant and Digital

Capturing the Attention of Millennials: Be Relevant and Digital

I know Gen Y are stereotyped as being transient, digital natives who are impossible to capture, but that is just the world we live in today. Technology has caused a proliferation of advancements and the financial services industry is (or should be) feeling the pressure. We have seen the rise of the robos, fee compression, virtual advisors, and various regulatory changes, all culminating to challenge financial advisors to find ways to cut through the noise to demonstrate their value.

Developing an effective marketing and lead generation process that’s tailored to millennials is vital for two key reasons:

  • It’s the only way you’re ever going to capture their attention
  • It’s the only way your business can remain profitable serving this demographic

Let’s be honest; there is a bit of an over-hype and obsession with millennials right now (don’t get me wrong, I’m obviously a fan). Nearly every business is starting to ask itself, “How do we capture this next generation?” And they’re spending tons of time and resources devoted to this one demographic. So think about all the different emails, social media and digital advertising you’re competing with, even beyond just the financial services industry. Whatever you put out there will have to be niche to their needs in order to capture their attention – and will have to feel authentic if you want to build enough trust to get them to engage.

As you begin to assess your ability (or desire) to serve younger investors, the question about profitability will inevitably come up. The traditional marketing advisors do today for their HNW investors is just not an effective or profitable way to target millennials. No COIs, business networking, client events, newsletters – that takes up way too much of your time. Instead, you should take a more scalable approach using digital marketing and messaging that actually resonates with your intended target market. Serving millennials should not be a loss leader; that’s exactly why segmenting and tailoring your marketing will be vital with this demographic.

Bringing it back to our friends Marg, Chip and Drew

In order to assess what type of marketing will effectively capture the attention of our three millennial personas, we need to answer these questions:

  1. What are their aspirations?
  2. What are their problems?
  3. When is the best time (in their lives) to capture their attention?


Marg seems to be more reactive and short-sighted, only seeking advice when there’s a triggering event causing her stress. Chip and Drew tend to have relatively similar characteristics, which you’ll notice quite a bit throughout our research. Aside from income, assets and debt levels, Chip and Drew tend to have the same needs and preferences. This means that you can take a relatively similar marketing approach in terms of messaging, but you’ll need a slightly different approach for each party later on, when we get into fees and service models.

Chip and Drew tend to be a little more financially mature than Marg; they look at longer-term goals and aspirations. The only exception would be that, when it comes to how these three define financial success, they all answered, “Having enough savings to retire when I want” as their top choice.

With the goal of tailoring your marketing messaging and approach to effectively engage these different segments, here are our recommended approaches.

Marketing to Marg

Topical blog posts and social media are the way to go. Even though Marg might not be ready for or in need of your professional advice quite yet, you can still find scalable, automated ways to prospect her (with the long-term goal of eventually capturing her once she becomes more like Chip and Drew). The key is to identify those triggers that cause Marg to seek help and find a way to insert yourself into the picture through digital marketing.

Writing a blog with topical posts that address key questions or issues that Marg might Google or research in her time of need is a great starting point. Think of blog titles like: A 5-Step Guide to Building a Budget, What to Do When You Have Credit Card Debt, and How to Improve Your Credit Score. Even though blogging might feel like it takes a lot of initial effort putting together the content, once it’s written, it can be leveraged in so many ways that you can actually realize a return on that investment of your time.

One blog post can be broken down into 10-20 different social media posts, posted on many different social media platforms (Twitter, Facebook, Instagram, etc.), and can be used for months after the blog goes live. And, over time, that content will accumulate and improve your website’s visibility in search engines (that’s search engine optimization) to increase visitors and visits from people like Marg.

Marketing to Chip and Drew

Build a targeted marketing campaign focused on life event planning. Retirement is still a very important issue when it comes to emerging wealth prospects like Chip and Drew. Not only do they define financial success as the ability to retire when they want, they also cite retirement planning as the top financial issue they want more help with. However, big life events are the key trigger for Chip and Drew to take action on their finances. And so the key to capturing these millennials is by striking at the peak of their interest – when these life events happen.

But before you can market messaging and content specifically focused on life events like marriage, first-home purchase, first child, and change of career, you have to first address any potential branding issues. If you’re serious about wanting to engage this group, your brand and website cannot be hyper-focused on traditional financial advisor themes like retirement, investing and wealth management. Expand your current brand or create a separate brand geared to this demographic that focuses on financial planning for life events (which can still include retirement as one key component). Then build topical messaging and content that plays to each life event, like “3 Financial Musts After Having Your First Child.”

If you’re fully committed, you could even take it a step further by implementing marketing that specifically targets millennials going through specific life events. For example, you could pay to promote social media posts or ads that only target millennials between the ages of 28-30, the average age most millennials are getting married . Maybe you purchase ads on blogs or other websites like The Knot for newlyweds or The Bump for new parents. You could also identify social influencers who blog or speak about life events and other topics affecting your target market and look for cross-promotional opportunities. The more targeted your marketing and content, the more likely you are to cut through the noise and capture millennial attention.

This brings me to a key point

Marg, Chip and Drew are not niches; they are merely personas representing 3 key segments within the millennial cohort. However, niche marketing is a very powerful tool that should not be overlooked when discussing effective ways to market to Gen Y. The more niche your content and targeted your advertising approach, the more effective your marketing will become in grabbing their attention. Case in point: A 33-year-old dentist is much more likely to click on something titled “Dos and Don’ts of Tackling Debt from Dentistry School” than a generic title like “Dos and Don’ts of Tackling Student Loans.” You want millennials to feel your content to is talking specifically to them – and that you’re a resource who understands the needs and issues of people just like them.

To those advisors who still aren’t really interested in serving millennials, but are using this series as an opportunity to review industry trends – this niche thing is not just for millennials; it can be an effective marketing tactic to use with all generations of all ages. There are so many changes going on right now in financial services that can confusion among investors and muddle your value proposition as a financial advisor. Recent technical innovation has caused a proliferation of many different business models in our industry. You’ve always competed with DIY platforms, but now (whether you like it or not), you’re being compared to robo and virtual advisors who likely spend a lot more on digital marketing and targeting than your traditional advisor. That’s why niche marketing can play a key role in helping you to cut through this noise and grab the attention of potential prospects (no matter what age they might be).

To learn more about outsourced services that help you grow - saving you time, increasing profitability, and differentiating you from your competition visit the SEI Advisr Network here.

Missy Pohlig
Twitter Email

Missy Pohlig is the millennial contributor for SEI's Practically Speaking and also serves as Program Manager for the Solutions Team in the SEI Advisor Network, helpi ... Click for full bio