Technology offers the potential of a huge advantage to financial professionals who can make the most of it.
This is especially true when it comes to attracting younger clients who have spent most of their lives online. When they’re making decisions about what to do with their money, it’s no different. Financial professionals who communicate with their clients online and make it easy to conduct business over the web may gain an advantage over those who don’t.
In fact, more and more advisory firms are realizing the benefits of technology on their business and spending more as a result. In 2024, the financial advising industry as a whole spent $24.8B on digital marketing — a 12.3% increase over the previous year. This trend is only expected to strengthen as the transfer of wealth creates more millennial and Gen Z millionaires.
More and more studies are showing the important role that technology plays in clients’ relationships with their financial professionals. In one study, 75% of millennial and Gen Z clients said they would look to qualified social media influencers for financial planning advice — highlighting the massive engagement opportunity inherent in online educational content. As younger individuals age and need life insurance and retirement products, they will connect with financial professionals digitally first — and then move towards a hybrid mix of online and in-person interactions as the relationship grows.
Fortunately, there are plenty of ways financial professionals can use technology to connect more with clients. Here are four steps you can take:
Younger generations more than any age group embrace the ease and efficiency of online communication. The best place to start making changes is your website. That’s the first place the young and internet-savvy will look for a financial representative. Forget a static website that only has bios and your contact info. Websites should provide a clear and intuitive interface, and serve as a place where you can start conversations with clients.
You might look to start a blog on your site and update it consistently with relevant content, then push your posts out on social media, adding relevant hashtags. If you have the resources and your compliance program allows, add a chat option to your website. If you don’t have the time to build the site yourself, you could look to hire a professional.
So much now happens away from the office, and by using technology to catch your clients on the go, you will offer them greater convenience and save both of you valuable time. While in-person meetings are still valuable and a great way to cultivate a relationship, sprinkle your interactions with technology like video conferencing. Baby boomers may love coming into the office, but younger generations often prefer the freedom and flexibility over getting stuck in traffic while driving across town to your office.
It’s increasingly crucial now for financial professionals to have a social media presence. Tik Tok, X, LinkedIn, and Youtube can be valuable marketing tools and great ways to interact with existing clients and potential clients. A recent LIMRA study found 62% of consumers in general look first to social media to learn about financial and insurance products — a number that climbs to 80% when focus shifts to prospective millennial and Gen Z clients. Keep in mind that social media plays various roles at different stages in your clients’ discovery processes: in the earlier stages, they may turn to it for general education about types of financial and insurance products; next, they may seek trustworthy opinions on brands and strategy; and finally, they may use it as a communication tool with their chosen financial professional.
Big data and artificial intelligence tools can go a long way to create personalized client profiles and tailored portfolios. Tools like Google Analytics show how many visitors your website received, what content they viewed and where they came from (such as a LinkedIn post or Google search). Finding out more about your web visitors can help you increase traffic and will hopefully provide insights that lead to attracting new clients and serving existing ones.
In addition, you may want to take a close look at how hard your CRM (Client Relationship Management) software is working for you. The best software generates reminders for when you should contact clients and records the details of your interactions. Even better? Find a system that gives you access from your phone so you can do business away from the office.
Big data and artificial intelligence tools can go a long way to create personalized client profiles and tailored portfolios. Tools like Google Analytics show how many visitors your website received, what content they viewed and where they came from (such as a LinkedIn post or Google search). Finding out more about your web visitors can help you increase traffic and will hopefully provide insights that lead to attracting new clients and serving existing ones.
In addition, you may want to take a close look at how hard your CRM (Client Relationship Management) software is working for you. The best software generates reminders for when you should contact clients and records the details of your interactions. Even better? Find a system that gives you access from your phone so you can do business away from the office.
Learn more about how to build a strong relationship and earn your clients’ trust.
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