How Robo-Advisors Can Reach Millennials
The early stages of a startup are very important. This is when the groundwork is laid and when the company makes its first impression on the market. If the right impression is not made and the right people are not met, your startup will be a part of the 90% that fail to create a viable business.
One of the primary decisions that needs to be made is which section of the market you will be targeting. The techniques needed to appeal to the different segments are very different so you need to know your ideal audience is.
Robo-advisors, being a new and technologically-enhanced service and financial advisor/planner, would be wise to target the millennial market—the largest part of the workforce and already technologically savvy. Of course, reaching these customers requires a knowledge of their habits and likes.
Embrace Your Technology
This generation is deeply linked to smartphones and the internet. Any marketing your company employs needs to use these venues to reach millennials. Make sure your promotions both use these technologies and illustrate how your company uses these technologies in its services and in private wealth management.
Embrace Your Social Media
Yes, this is in many ways a new technology, but it has capabilities that are distinct from other technologies. This is the best way to interact with your market, as it allows you to create a real connection (which in turn will create loyal customers). Also, a solid social media marketing hold the potential to go viral, extending your reach beyond current consumers to potential customers.
Embrace Your Brand(ing)
Millennials are very conscious about what is going on in the world at large and want to support a company that shares its ideals. Put yourself out there as a game-changer and a company with a conscience and you will draw the millennials in. Known in the market as Socially Responsible Investing (SRI), many robo-advisors are embracing this angle. One of the newer entries in the marketplace is ModernAdvisor, a company that states it offers, “socially responsible investing via ESG (environmental, social and governance) portfolios.” Environmental causes and social causes both tend to be of great interest to the millennial generation and clearly tying your company to these movements is a great way to draw in the millennial market and their financial portfolios. (37% say they would be willing to pay more if it meant supporting a product and company they believed in.)
Millennials are a very profitable section of the market, comprising 25% of the US population and 21% of consumer discretionary purchases. Knowing how to reach them is vital for survival in today’s market, especially if you’re a company or product that is tied to the technology field. What does this mean? If you are a robo-advisor, you need to start thinking about your millennial marketing schemes.