Introducing the client of the future
One of the fastest growing customer bases in emerging markets is the recently empowered emerging middle class. This group has a distinct identity and a clear vision of who they are and how they want the world to interact with them.
The majority of this this group is made up Millennials, that sector of society that the older generation jokingly bemoan as a group that will never understand their struggle.
A new struggle
What people don’t realise is that Millennials have a struggle of their own. Their levels of self-actualisation are extremely high, and they will be quick to tell you that they feel that they are more important than many other people in the world.
How then do brokers, advisers and intermediaries deal with this growing customer base? How can they be effectively engaged?
A recent report on bizjournals.com provides some solutions to these questions. The report says that understanding their aptitude will go a long way in determining the best path to take when engaging this generation.
Break boundaries
The South African financial services industry has been operating in the same way for a number of years. Clients get rated the same way when it comes to short term insurance and blanket offerings are provided when it comes to retirement planning. Can this continue going forward?
The Bizjournals report points out that Millennials are responsive to easy interactions while going through their day. Businesses will need to shift how they provide products and services by weaving in their lifestyle choices and needs.
Go beyond
Understanding a Millennial goes beyond tuning into their aptitude, it’s about knowing what makes them tick as a human being.
The report shows that nearly 21% of Millennials left a position in pursuit of opportunities in another industry. So they are willing to switch jobs more frequently than past generations as opportunity presents itself. This means that issues such as the preservation of retirement savings becomes vital
The report adds that companies who want to maintain the loyalty of Millennials will need to focus on issues such as advancement, pay and challenges to expand knowledge. An opportunity to increase retirement contributions also exists, and is a way for advisers to grow their business.
The double edged sword
The above issue extends far beyond Millennials who are looking to advance their careers, it is also applicable to their interactions with brokers, advisers and intermediaries. Advancement speaks to security; Millennials want to know that the product that is being promoted to them will not only protect them now, but will protect them and their family in the future.
Pay speaks to cost. Millennials want the above solution at the best price. Gone are the days where Millennials would be expected to pay a premium for stuff they don’t want. They want tailored products with tailored prices.
Lastly, Millennials want to be informed. Benjamin Franklin once said tell me something and I will forget, teach me something and I may remember, involve me and I will learn; Millennials no longer want a broker, adviser or intermediary who talks to them or at them, they want to be engaged in the decision making process of purchasing a product.
And fair warning is given, this is the most connected generation in human history. Don’t be surprised if they have done their research on the product that you are trying to sell to them before you even meet with them.
Opportunities in challenges
Being the most connected generation in history can also be an advantage. Gartner Research shows by the end of 2016, there were more than 6.4 billion connected devices; that is a 30% increase over 2015. This type of channelling allows Millennials to influence each other and influence purchasing decisions while also giving businesses an opportunity to be influencers as well.
Because of this, having strong company social media channels is a must. This is because most Millennials conduct research and review company media, employee surveys, people working for the company, and online reviews.
We do not need to be frightened about anything stated in this article. In fact, engaging with Millennials, if done the right way, can provide you with insight into your business that you never knew you had. It will allow you to achieve the professional growth that Millennials desperately seek. It also allows you to make the difference that Millennials so desperately want to make in the world.
Editor’s Thoughts:
Brokers, advisers and intermediaries do not need to hit the reset button in order to engage with Millennials. It merely takes time, patience and investment into your own business practices into order to make this happen. Can you afford to ignore the client of the future? Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts jonathan@fanews.co.za.
Comments
However, remember that the process of getting the product is still emotional , to meet a need... in that way millenialls are no different... they still don't want to read pages and pages of documentation and still have the same emotional signals of why they want products. Human needs stay the same. And, from my experience, they still want to meet... because most of their interaction is online... they have very few trusted friends/ contacts- who are all chasing the next online thing. So, a trusted advisor can actually be there best friend.! Report Abuse