Advisors who aren’t stepping up their game by using social media, video and other technology, and aren’t reaching out to appealto younger investors, especially high-net-worth millennials, are in danger ofbecoming the next Blockbuster, according to Samantha Russell, chief evangelistat FMG Suite and chief marketing andbusiness development officer at TwentyOver Ten.
Advisors also should be open tochanging their fee models to appeal toHNW millennials and other new investors, she said.
In an interview with InvestmentAdvisor, the digital marketing experttalked about those and other industrytrends to which advisors need to payclose attention.
Investment Advisor: What are the top
one or two concerns of your clients and/
or the industry right now and why?
Samantha Russell: Even though thereare many concerns wealth managementfirms are dealing with right now — thecommoditization of wealth management, increased pressure to lower feesand be more fee-transparent, the rise ofrobo-advisors/DIY investing, the shiftin how investors find an advisor in thefirst place — all these concerns reallycome back to one thing: shifting demographics and increased technology.
Younger investors are more savvy
and likely to shop around (and better
able to inform themselves via online
information), and the number of HNW
millennials and women is growing at a
fast clip. According to a 2020 report by
Capgemini, HNW clients are expected
to transfer around $68 trillion within the
next 20-25 years to their heirs, and 80%
of those heirs are likely to change firms
after inheriting their parents’ wealth.
That’s just a tremendous amount of
money ready to change hands.
Add to that the commoditization ofinvestment management, as well as theincreasing comfort that each generation has with technology, and all of asudden there is much more pressingneed for financial advisory firms todemonstrate value.
What’s your top piece of advice about
The quickest way to become the nextBlockbuster is to build for the future byfocusing on what’s worked in the past.
The firms that will benefit from thisdemographic shift will be the ones whoare forward-looking.
What shifts are just too big andimportant to ignore? Where are yourclients and prospective clients gettingtheir information? Where do they spendtime online? What do they want thatyou just aren’t offering? Pay attention towhat information they are consuming,so that you can speak/write to addressit. Be where they spend time online(YouTube, social media, blogs, etc.) sothat your firm stays top of mind and partof the conversation. And constantly bereevaluating and reinventing your offerings to keep up.
For instance, many of the firms wework with have started implementingnew fee models (such as subscription
WOMEN IN WEALTH
By Jeff Berman
Samantha Russell: Don’t Become the
Advisors need to understand that shifting demographics are the key
trend affecting their business growth.