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Investors under 40 have little interest in reaching out to humans for financial advice. Rather than collaborating directly with a professional, many investors under 40 prefer a do it yourself (DIY) method that enables them to find stock market information online.
Where are they locating this information? The answer is social media. In the United States, 79% of Gen Z adults and millennials have sought out financial advice on a social media platform.1
For many investors within these age groups, social media is a primary source of information.
Adults between the ages of 18 and 34 use social media to research investment ideas more than any other resource.2
Within the so-called “attention economy,” social media ranks above other sources of information, including conversations with family and friends, financial or investment websites, news websites, and podcasts.
Financial advisors may benefit from focusing on producing or outsourcing three types of original content: webinars, written blogs, and shared posts from authoritative sources. When implemented correctly, these strategies can serve as vehicles for lead generation and ongoing client education.
Webinars
Promoting and hosting webinars through social media offers dual benefits. First, they can act as a source of lead generation. Every webinar requires its participants to register. Each unique registration from an unfamiliar prospect can be followed up with an email offering a consultation.
The second benefit of a webinar is client education. If advisors hope to pull younger investors away from other forms of digital information, they’ll need to supply their own. Advisors who can routinely host webinars may come to be viewed as content experts by their clients. This could serve the goal of client retention over time.
Keep in mind that webinars will produce analytics reports after the fact. Advisors can discern which clients are the most engaged, the least engaged, and everything in between.
We recommend using Zoom. It is a known product that supplies performance reports after the webinar is concluded. Advisors can make recordings available on YouTube (at no expense) for clients and prospects to access at any time. After all, a whopping 80% of millennials prefer video when learning how to use a product or service.3 Easy access to video content is essential for communication with investors under 40.
Blogs
Frequently share commentary on relevant market events and topics of interest by writing blogs. An estimated 95% of your prospects will search for you online prior to engaging your services.4 Be sure to include a call to action in your blog.
For example, you can direct readers to an online contact form on your website where they can enter their name and email to request additional information or ask questions. Every form submission is a new potential client for you to engage with.
Many online resources can further elaborate on how to write a quality blog.5 The more often you write, publish, and share on social media, the more likely you are to engage new prospects.
Sharing content from other sources
Advisors who successfully attract clients using social media are posting on their platforms an average of 35 times per month.6 Of course, financial advisors are always busy, and spending most of their time with clients. Instead of working around the clock on your own marketing, advisors can share content from authoritative, trusted sources.
It’s perfectly acceptable to share an online article or video from sites like Forbes, Bloomberg, or the Financial Times with some written reflections, provided you’re following firm policies around social media use. Sharing high-quality content on your own social media platforms is a great way to stay active and establish professional awareness without spending a lot of time.
Within the financial services industry, both LinkedIn and Facebook tend to be the most frequently used online platforms. Consistent engagement in these spaces has the potential to yield some additional opportunities for financial advisors.
Advisors should regularly review compliance standards before engaging in this practice. As with any marketing strategy, it’s beneficial to follow regulatory standards. With time and effort, attracting business from investors under 40 is an attainable goal.
If you’re interested in learning about the support Symmetry Partners can provide, schedule a meeting or sign up to receive our brochure.
Endnotes
1 Forbes Advisor, “Nearly 80% of Young Adults Get Financial Advice From This Surprising Place,” Mar 4, 2023. https://www.nasdaq.com/articles/nearly-80-of-young-adults-get-financial-advice-from-this-surprising-place
2 CNBC/Survey Monkey Poll: “Invest in you,” Aug 2021. https://www.surveymonkey.com/curiosity/cnbc-invest-in-you-august-2021/
3 CNBC/Survey Monkey Poll: “Invest in you,” Aug 2021. https://www.surveymonkey.com/curiosity/cnbc-invest-in-you-august-2021/
4 12 Benefits of Social Media for Financial Advisors - Oechsli. (2020, November 9). Oechsli. https://oechsli.com/12-benefits-of-social-media-for-financial-advisors/
5 Adams, J. (2023, March 22). How to Create a Financial Advisor Blog (In 5 Steps) | FMG. FMG. https://fmgsuite.com/insights/creating-a-financial-advisor-blog/
6 Putnam Investments, “Putnam Social Advisor Survey 2023.” https://www.putnam.com/static/pdf/Putnam-Social-Advisor-Survey-2023.pdf
Kevin Pallotti is Marketing Coordinator, Video Producer & Editor at Symmetry Partners, LLC, an investment advisory firm registered with the SEC. He produces educational content, webinars, and customized videos for Symmetry’s advisors (in a B2B capacity). Kevin also specializes in compliance-related responsibilities, writing, formatting operations documents, and design. With his longstanding experience, Kevin is known as the marketing team’s “utility” member.
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Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
