Some financial advisors are hesitant to start working with millennial clients as there is a perception that they aren’t profitable. According to the latest StatsCan data, millennials are the fastest-growing generation and make up 24.9% of the Canadian population. Ignoring this generation, ultimately, will be detrimental to an advisor’s business.
Here are just a few reasons why millennials can be valuable clients for your business:
Since this generation is just getting started in the workforce, they have a longer investment horizon than older clients. By building a relationship with them early on, you can position yourself to benefit from their future growth and investment potential.
Not only do they have the potential to accumulate significant wealth over time through their careers, many millennials will also inherit wealth from their parents and grandparents in the coming years. This presents a valuable opportunity for financial advisors who have established strong relationships with this demographic.
This generation is comfortable using technology and may prefer to work with financial advisors who offer online tools and digital solutions. This presents an opportunity to leverage technology to strengthen client relationships while also alleviating tasks and operational processes that take you away from your role.
Millennials are a social group and are likely to share their positive experiences with their friends and family. By providing excellent service and building strong relationships with these clients, you can create a valuable source of referrals.
Typically, financial advisors exit the business by selling their book to another advisor. This may be a planned successor or another advisor in the industry. If the book of business is mostly comprised of retired clients, the income potential is lower and the sale price will reflect this. Younger clients increase the long-term profitability of the business and will be worth more to a potential buyer.
In order to successfully attract millennial clients, it's important to understand their unique needs and preferences. This includes a focus on digital tools and solutions, as well as a willingness to educate and empower this demographic to take control of their finances. By offering a personalized and collaborative approach that meets the needs of millennial clients, financial advisors can establish strong relationships and position themselves for long-term success.
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