"The Kids are Alright" - Youth Marketing for Financial Advisors
As a financial advisor, it is safe to say that your target audience includes some of te following; family businesses, business owners, couples (known as DINKs, for double income, no kids), established professionals and entrepreneurs.
It is also safe to say that the majority of these individuals are over the age of 30.
Yes, established, industry-leading professionals are a sure bet when it comes to a financial advisor’s target market. They have wealth, assets and reputation to make an advisor’s job that bit easier, guaranteed for success.
As a result, however, younger markets have been overlooked. In fact, a recent study from the University of Edinburgh’s Business School
With this in mind, here’s why a younger market can open a new, profitable channel of opportunity for your firm. They are ambitious and driven to succeed in the face of an economy that is against them. Get behind the underdog!
They are digital natives
Young professionals are at the frontier of the digital and creative
As the New Statesmen puts it, young people are the answer. Their positioning is ideal, and they could well be the solution to the current digital skills shortage in the UK, as the article posits.
All they need is a little financial know-how to pursue their goals and realise their visions. It could solve a skills crisis in the UK that currently costs £63 billion per year.
What’s more, young people have managed to carve out their own careers in the digital sphere. The likes of YouTube influencers and Instagram celebrities have earned millions, and all from the comfort of their bedrooms. Talk about entrepreneurship.
The power of naivety
Stay with us, this isn’t necessarily a bad thing. In fact, it can be a huge advantage. A smattering of naivety in a young professional means that there are minimal obstacles that block their path. They are unaware of a standard to which they must satisfy, or a preconceived notion of what can or cannot be done.
As averse as we are to
Time is on their side
Working with a financial advisor is a business relationship like any other, and as such you get back as much as you put in. One of the advantages a young adult has when they’re setting out on a new business venture is freedom of time.
This is time to learn, grow and build. There is also ample time to
This level of flexibility makes a young market favourable, as opposed to an older audience that
They are relatively low risk
While we’re on the subject of time-constraints and life’s responsibilities in general, it’s fair to say that young professionals have few. Their life savings are not hanging on the line, and their costs are minimal (especially if they’re living with parents to save money).
Without mortgages to pay for, or perhaps a family to feed, young entrepreneurial types are relatively low-stake prospects. Pursue them!
They have a strong work ethic
Despite the amount of bad press aimed at young people and ‘millennials’ in particular, it has been found that young people actually work the hardest.
According to a recent survey by Office Genie, people aged 16-24 worked on average seven hours and 22 minutes extra each week. Almost a whole day above the normal working week, it goes to show that young people are not as workshy as some might think.
They are risk takers
This has to do with having very little to lose, and ‘thinking outside the box’. Any entrepreneur worth their salt will take risks, and the younger will have a particular edge in that respect.
Fear is a big player in the risk-taking game, and those bold enough to take risks do so in the spirit of facing those fears. Making a decision that flies in the face of business convention (or even good judgement) can mean a world of difference.
The Edinburgh University study is also telling in that young adults are the least confident age group when it comes to financial matters (45%, compared to 58% of all adults). It concludes by stating that financial confidence comes not with age, but with experience.
In conclusion, whilst your
They have ambition, drive and entrepreneurial flair - they’re just waiting for a little financial direction. There is emerging appeal for both sides, so you’ll want to stay ahead of the race.