Put Millennial Clients In The Driver’s Seat

Most affluent millennials want to be in complete control of their wealth and investments, so advisors have to offer millennial clients a service model where they feel like they are driving the relationship.

Research from Phoenix Marketing International, which was published last year, found that 66 percent of millennials who had a minimum of $100,000 in investable assets and were extremely active investors—having added to or made new investments in at least three asset categories over the previous six months—agreed with the following statement: “I need to take much more control over my investment decisions.”

On the other hand, 48 percent of them stated that they prefer to rely on advisors “selectively for specific needs.”

Advisors should keep these preferences in mind, and adopt digital technology solutions which allow millennial clients to not only view portfolio and investment performance and a holistic picture of their wealth, but also to revise their goals and financial plans (and alert advisors) as their lives change.

This is the relationship that many millennials prefer—one where they can access their accounts and change their financial planning trajectory when they want, and get help from advisors as the need arises.

Start By Presenting A Succinct Value Proposition For Achieving Shorter-Term Goals

When advisors first engage with millennials as prospects, they should begin the conversation by outlining three or four basic reasons why the benefits they provide can’t be obtained anywhere else.

Then, advisors should explain how their value proposition could help achieve a short-term financial goal. Demonstrating what you as an advisor can do for a millennial prospect over the course of 30 years likely won’t have the desired impact. After all, who in their 20s or 30s is thinking about where they want to be when they turn 65 or 75?

Most importantly, keep the initial conversation focused on your value proposition and how you can help them reach shorter-term goals in a flexible and user-friendly way. Handing a 30-page report to a millennial prospect, or any prospect for that matter, and hoping they’ll get something out of it will likely nix the possibility of a second meeting.