Generation X is an important client base for financial advisors and the future growth of their firms. I have written several articles on how The Generation X demographic is a huge opportunity for financial advisorsAND what marketing strategies might work to achieve them. For context, there are currently over 43 million Gen X members over the age of 50 and growing every day. Within the next few years, this will make up a large part of the target demographic for financial advisors. For every year, month, and day you neglect this audience, your competitors are building market share with this demographic to secure their advisor's future. So now is the time to connect with this generation to start working with them to help them prepare for retirement and beyond.
If you're not convinced, get it from a fellow advisor. Mark Kenney's article for Kiplinger titled, Gen X must now prepare for the great transfer of wealth taps into a trend he's seeing where Gen X is seeking financial guidance for retirement but not finding the tailored advice they need.
The question for financial advisors is how financial advisors can connect and communicate with this demographic in a different way than they did with baby boomers. Advisors must be keen to understand how to let Gen X know that their firm has what they need to guide them through retirement. This question can only be answered with a solid understanding of their unique preferences, values, and communication styles. So let's discuss some of the key characteristics of Gen X that can help advisors better connect with this crucial demographic.
Gen X is different from Baby Boomers
Boomers, on average, respond best to a value deal and a strong sales pitch. For them, if you can summarize the essential information, no matter what you cut, they will often feel confident in making a buying decision. This is true for many people, not just the baby boomers. But the data shows that this is a little more true for this demographic than others. In some ways, boomers respond best to personality and confidence. These are valuable traits that can say a lot about someone you're working with. But for Gen X, the emphasis is on something else. Gen X tends to respond better to being educated than being sold too. They would rather watch videos on a topic that explain the ins and outs of how things work. Not only do they respond to the essence of this communication style, but it also allows them to discern whether the person they are looking to make a purchase decision with is genuine and intelligent. When sold on a sales pitch, or when making blanket statements about a product, they tend to walk away.
Because of this, Gen X responds best when they can engage more personally with the advisor and the topic. With Gen X, it's imperative to take a personalized approach where possible and communicate their specific financial needs. So think about where they are in their lives. Many of them are facing two major financial challenges: aging parents and growing their families. These two conditions can put a strain on their retirement plans and can be the primary focus of their financial worries. Addressing their family's financial well-being can be a major selling point. Providing them with proven solutions to help plan for a child's future needs, while at the same time helping them plan for the potential long-term care needs of their aging parents.
It is also important to build trust and be transparent in your approach with them. It is important to communicate your fee structure, investment strategies and potential risks. By doing this, you take the essential steps towards building trust, especially if they are looking for a financial advisor for the first time.
From a digital perspective, how do you best convey this message to Gen X? You can connect with them on digital platforms in several ways. As mentioned above, Gen X wants to be educated and gain knowledge. So, for example, one way to do this is by creating a series of videos that address an issue or concept important to them. This shows that you are knowledgeable about the subject and is an opportunity to speak honestly without over-the-top language. If we follow this example, these videos can be repurposed and strategized to increase your reach online—a place where Gen X spends a significant amount of time and where many of them make their purchasing decisions.
What do I mean by, “strategies to increase your online reach?” These videos can, for example, be posted on your YouTube page with their playlist on the topic on your channel so that your audience can easily access them. Not only that, but you can create shorts from these videos to entice people to go to the YouTube channel and watch the longer video. These shorts can also be posted on your other social media accounts and can also drive traffic to YouTube. In short, this content can be repurposed and shared in ways that don't take away from their genuine tone or subject matter expertise.
You can even transform those videos into blogs about many of the top financial issues for Gen X, all while staying within the realm of your brand and a touch away from your sales funnel, not someone else's. In addition, your social media channels are a place to show the personality of your business and the people who work for you. Instead of infomercials or cable TV spots, these channels allow you to communicate honestly in a way that Gen X will take more positively and personally. A firm that can communicate who they are through key insights tends to make the best connections with Gen X.
So remember this: for Gen X, you need to be real, be an educator, leave your ego at the door, avoid being overly sales-focused, and be patient. It may be a game-changer in how you work with your customers today, but as more Gen Xers approach their retirement age, you'll need to use these insights to be effective in communicating with this demographic key.
Craig Foster is Lonely lighthousedirector of digital media.