Let me first introduce you to a new group of investors – digital-savvy members of the millennial generation with a different approach to accessing and using financial advice.
New customers, old knowledge
The first thing to understand about this new audience is that you still need to know the same things about them to sell successfully – which are their motivation and risk profile. Knowing what lies behind their actions, and how far they are willing to go to achieve their financial objective, puts you in a very powerful position. Everything else – such as buying habits, position and objectives – revolves around these primary areas.
Nothing new there then.
But how you establish motivation and attitude to risk is going to change.
The fall of the relationship manager
45% of respondents to a recent ProFundCom survey said that relationship managers were their main source for raising new investment. This is perhaps unsurprising, as relationship managers know and understand the motivation and risk profiles of their clients better than anyone, so are well placed to advise – and sell to – them. By contrast, very few of our respondents cited CRM information, or analysis of digital behaviour, as a source of asset raising.
But this situation will soon be turned on its head…
The influence of relationship managers is waning – fast – thanks to the rise of the millennial generation. Because they are so digitally connected, millennials have much more input into their buying decisions and thus rely much less on what a relationship manager may tell them. So, distributing thought leadership and trusted advice through the web – and connecting with potential investors via social media – is becoming much more important.
And analysis of the data that comes from these interactions will soon become your prime source of marketing intelligence.