Navigating Modern Consumer Behavior for Sustainable Growth: A Comprehensive Guide for Financial Services in Insurance Tech, & Financial Brokering

The financial landscape has changed with the fact that the oldest Millenials are now in their 40s & the oldest Gen Zs are entering their late 20s.

With that, the role of financial planners and advisors has become more complex than ever before.?

Financial firms which here include investment planning, insurance, insurance tech, and even financial institutions must adapt their strategies as consumer behaviors and expectations undergo significant transformations.

?From education-based marketing to aligning with consumer values and implementing social selling programs, understanding and leveraging these shifts is crucial for sustainable success in this new age for financial professionals.?

Let's explore each aspect in detail to provide actionable insights for financial planning firms and co seeking to navigate modern consumer behavior effectively.

And yes, this is applicable if you are a bank or a challenger for the finance title such as fintech and insuretech

This is a discussion from market research I conducted last year for a project with a client, and yes, I have gotten permission from our client to share the 30,000-foot view of the industry as I do not own data collected for client work.

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1. Educating, Not Selling: The Paradigm Shift for? Establishing Trust and Aligning with Consumer Values in The Financial Sector

The traditional approach of pushing products onto consumers by the financial sector, especially in the insurance world through aggressive sales tactics is no longer effective.

We are in a digital age where consumers are bombarded with marketing messages and have become more discerning.?

Secondly, at least 60% of buying decisions are started through Google for B2B, and B2C is no different.

As a result, financial planners and advisors must shift their focus towards an education-centric approach to build trust and credibility.

By prioritizing education over sales, financial planners and advisors can establish themselves as trusted sources of information, fostering stronger connections with clients and prospects.

One of the key benefits of an education-based marketing approach is the ability to build trust with clients.?

Planners and advisors can position themselves as knowledgeable and trustworthy advisors by providing valuable content that addresses their financial concerns and goals.

Trust is the cornerstone of successful client-advisor relationships.?

By adopting an education-centric approach, financial planners can instill confidence in their clients and differentiate themselves from competitors.

For example, a financial planner could host a series of educational webinars on retirement planning, covering topics such as investment diversification and tax strategies. Attendees will gain valuable insights and view the planner as a knowledgeable resource.

This will help you build credibility and trust, which are essential for developing strong client-advisor relationships.?

Additionally, hosting webinars allows the financial planner to showcase their expertise and unique approach to financial planning, setting them apart from competitors. Plus, the questions you receive will allow you to find out the questions your market has on the products & services you offer, which then allows you to create and publish content that answers them when they are searching on the internet, therefore finding you the business owner, advisor, or firm, and since you answered, they believe you understand them.

Kind of like when you go to the doctor, you tell them a bit of a headache and keep vomiting, & they tell you about the symptoms you couldn’t articulate yet, you immediately trust that whatever medication they will give you is right.

Finally, as attendees apply the knowledge gained from the webinars to their financial situations, they may be more likely to seek further guidance and assistance from the planner, because you gave them the information, hence potentially leading to new client relationships and business opportunities.?

You could also create a TikTok series, following in Reesa Teesa's footsteps, where you can educate the market, even with fictional characters by leveraging storytelling

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2. Understanding Client Needs To Showcase Value in The Financial Sector

Financial planning is a deeply personal endeavor, and clients seek advisors who understand their values and aspirations. When you as an advisor or planner, and even a company in the sector such as insuretech can demonstrate that you align with their values, you can build stronger relationships with clients and prospects.

This not only strengthens client-advisor relationships but also enhances brand loyalty and advocacy.

This can be accomplished through education-based marketing that provides an opportunity for you as a business brand, or as a financial planner or advisor to showcase your values authentically.?

For example, I am a strong advocate for DEI, and if I am your ideal client, this is some of the things I will look out for when thinking of doing business with you.

There are several service providers and tech products I have not purchased even though I like the brand, simply because I didn’t see people who look like me on their payroll

So, if you were looking to get the attention of someone like me, it would be by creating content that highlights your commitment to diversity, equity, and inclusion (DEI), you can attract socially conscious clients who align with your values.

Interestingly, this was also shared in this Investopedia article? you should check out

Demonstrating a commitment to things such as DEI if it is what your audience supports, not only attracts clients who share similar values but also demonstrates that you contribute to a more inclusive and diverse financial industry which creates brand ambassadors who will promote your business for free thus increasing referrals without it costing you a dime.

A great way to do it is, for example, a financial planning firm, bank, or insure-tech company sponsoring community events focused on financial literacy for underprivileged youth, entrepreneurs, or underserved communities.

This demonstrates a commitment to the community and involvement in community engagement, which moves you from being a seller to be one of “them”.

So, they will trust you way more than any competitor and no amount of sales agents or advertising can beat this.

I call this the “Apple Effect”. Because, let me ask you. Who sells the product more between Apple product fans and their sales personnel?

We can all agree, the fans. And they get no commission for it either.

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3. Benefits for Financial? Advisors for? Building Trust and Advocacy

AI for all it can do has precipitated an era of increased skepticism, with clients wary of advisors who prioritize sales over their best interests.?

This shift to education-based marketing helps to dispel doubts by providing unbiased information and guidance as you address client skepticism by building stronger trust and credibility, leading to more meaningful and long-lasting client relationships.

Adopting such an education-centric approach will not only build trust but also drive business growth as financial firms and professionals position themselves as trusted educators, and advisors who can attract high-quality leads and foster client loyalty.

I am a strong advocate of prioritizing education over sales for any business honestly as it creates a sustainable pipeline of leads and clients, leading to consistent business growth and success.

Take the example of a financial advisor who publishes a series of informative articles on personal finance topics, attracting leads who value expertise and transparency.

Because think of it, this is Meta-You are doing the same thing right now

You are reading this article because you are curious about this particular problem, so I can safely assume that you are in the sector and are experiencing declining sales, or you can sense the shift and want to understand the problem.

Either way, You probably follow this newsletter for marketing and operations insight, and since it is shared on Google as well, you might have searched for the topic, and it landed you here.

?I am eating my dog food here because you are A) Problem aware, and by the end of this article I would have made you solutions aware, or B) Solution aware, but wanted to reinforce your belief, so hopefully by the end of this article, you would have made up your mind on implementing a similar program.

And you are going to want to speak to me or the team to help you clarify some things

And even if it is not you, for as long as this article lives on the internet, it will drive leads for us.

So, you see, it works.

By the way, feel free to book a marketing business audit here to have us pinpoint the problems in your marketing and sales if anything you have read so far has resonated

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4. Understanding Consumer Behavior:? Insights on Generation Z and Millennials

Gen Z consumers prioritize authenticity and value brands that align with their values. Financial planners and other financial institutions can engage this demographic by creating personalized content and leveraging social media influencers, or creating a program to have members of the team become creators within the business.

For advising firms, consider investing in a program to train your financial advisors to build personal brands on social media. If this is something you would like to consider, feel free to DM me to set up a coffee chat with me, and I will tell you more about how we are supporting businesses like yours to do this

As a business, you must understand the preferences and behaviors of Gen Z consumers to allow your financial planners or sales personnel to tailor their marketing strategies to effectively engage with this demographic.

Now, on the other hand, millennials rely heavily on social media for information and recommendations.?

Advisors can connect with this demographic by sharing relevant content and demonstrating expertise through online platforms.

When you leverage social media platforms and create content that resonates with millennials, your financial planners can attract and retain younger clients, ensuring the long-term sustainability of their practice.

A program we did for our client advisory was to have some of their financial planners partner with popular personal finance influencers on Instagram to host a series of Q&A sessions on budgeting and investing for millennials.

This approach allowed their planners to connect directly with their target audience, providing valuable insights and guidance tailored to their needs and preferences. This resulted in more engagement with the content as they viewed the financial planners as credible sources of advice, and ultimately, considered working with them to achieve their financial goals.

But, also, these financial planners had the opportunity to tap into a pre-existing audience that is already warm and predisposed to engaging with content related to budgeting and investing.

?These influencers have built a loyal following of millennials who trust their recommendations and value their expertise.?

So, when we created this collaboration with these influencers to host Q&A sessions on these relevant financial topics, they could effectively leverage the trust and credibility established by the influencers.?

This allows the planners to reach a highly engaged and receptive audience, increasing the likelihood of attracting new clients and fostering meaningful connections with millennials interested in financial planning services.

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5. Implementing Social Selling Programs for Financial Planners: Leveraging Social Media and Marketing Operations Integration

Social selling programs enable advisors to prospect and engage with clients on digital platforms.?

By leveraging social media tools and strategies, planners as well as agents can reach a broader audience and nurture relationships at scale.

As a business, when you embrace social selling, your financial planners can expand their reach, increase brand visibility, and drive engagement with clients and prospects.

I understand that some banks and fintechs have a “mandated agent” model, and it is applicable here.

But to ensure this works well, you will have to streamline marketing operations to ensure efficiency and consistency across initiatives.?

When you integrate processes and leverage analytics, your planners and agents can optimize their marketing efforts and drive measurable results.

They can improve lead generation, increase conversion rates, and ultimately drive business growth and profitability.

For our client which was a financial planning firm, we implemented our system Digital Boost which includes a customer relationship management (CRM) system to track leads and automate follow-up communications, resulting in improved lead conversion rates.

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6. Why Is This Important and Why Now Is the Time to Change for the Financial Industry

We live in a hyperconnected world, and consumers have access to an abundance of information and options at their fingertips.?

They are more empowered and informed than ever before, and traditional sales tactics no longer resonate with them.?

Therefore, financial planners and agents must evolve their strategies and embrace education-based marketing, align with consumer values, and leverage social selling programs to stay relevant and competitive in the market.

Moreover, the current socio-economic landscape has further accelerated the need for change. The COVID-19 pandemic has reshaped consumer behaviors and expectations, with an increasing emphasis on digital engagement and remote communication.?

Financial planners who fail to adapt to these changes risk falling behind and losing relevance in this changing market.?

Therefore, now more than ever, it's imperative for financial professionals to embrace innovation and adopt new strategies to meet the evolving needs of their clients and prospects.

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7. Why Running Ads No Longer Works For Fintechs, Financial Advisors, & Banks

While advertising has long been a staple in the marketing arsenal of financial planning firms, it's essential to recognize that relying solely on ads will not be your saving grace in the face of evolving consumer behavior.?

One crucial factor to consider is the impending demise of third-party cookies, which have historically been instrumental in targeting and tracking consumers across the web.?

With major browsers like Google publicly declaring that they will be phasing out support for third-party cookies, the ability to effectively target and retarget cold traffic will be severely limited.

This shift underscores the need for financial planners and other institutions to pivot their advertising strategies toward cultivating warm audiences they can sell to directly.?

Unlike cold traffic, which consists of unfamiliar prospects, warm audiences are comprised of individuals who have already interacted with the firm's brand or content in some way.?

By focusing on nurturing warm audiences through content marketing, email campaigns, and social media engagement, financial firms can build trust and credibility over time, leading to higher conversion rates and customer loyalty.

Central to this shift is the concept of first-party data, which refers to data collected directly from consumers through their interactions with a company's website, social media channels, and other owned properties.

?Unlike third-party data, which is obtained from external sources, first-party data is inherently more reliable and valuable, as it provides insights into the preferences, behaviors, and interests of existing clients and prospects.

In the absence of third-party cookies, first-party data will become the new oil, driving targeted advertising campaigns and personalized marketing efforts.

?By leveraging first-party data to create tailored messaging and offers, financial planning firms, agencies, and institutions can effectively engage with their warm audiences, delivering content and services that resonate on a deeper level.

Moreover, the shift towards first-party data presents an opportunity for financial firms to foster stronger relationships with their clients by prioritizing transparency and data privacy.?

By obtaining explicit consent and providing clear value propositions, firms can build trust and confidence with consumers, enhancing their reputation and credibility in the market.

In addition to prioritizing warm audiences and leveraging first-party data, financial planning firms can further bolster their marketing efforts by diversifying their digital properties into media assets.?

These media assets encompass a wide range of platforms and formats, including communities, newsletters, courses, online magazines, podcasts, and YouTube channels.

By investing in these media assets, financial firms can create valuable touchpoints for engaging with their target audience and collecting first-party data.

?For example, a community forum or online group dedicated to personal finance topics can serve as a hub for client interactions and discussions, providing valuable insights into their interests, concerns, and preferences.

Similarly, newsletters and email campaigns can be used to deliver curated content and exclusive offers to subscribers, further nurturing warm audiences and driving engagement. Through careful analysis of open rates, click-through rates, and subscriber feedback, financial planners can glean valuable insights into the content that resonates most with their audience, informing future marketing messaging and strategy.

Courses and educational resources represent another opportunity for financial planners to develop their first-party data while providing tangible value to their audience.?

By offering free or paid courses on topics such as retirement planning, investment strategies, or financial literacy, firms can attract and engage with potential clients, establishing themselves as trusted authorities in the field.

Furthermore, digital assets such as online magazines, podcasts, and YouTube channels can serve as powerful platforms for delivering informative and entertaining content to a broad audience.?

Through regular content creation and distribution, financial planners can reach new prospects, nurture existing relationships, and build their brand authority over time.

By developing a diverse portfolio of media assets, financial planning firms can not only collect valuable first-party data but also build their sales pipeline at scale.?

These assets serve as channels for directly engaging with consumers, gathering feedback, and refining marketing messaging to better align with their needs and preferences.?

Ultimately, by leveraging the power of media assets to inform their marketing efforts, financial planners can drive meaningful connections, foster trust, and achieve sustainable growth in today's digital landscape.

In summary, while advertising will remain an important component of the marketing mix for financial planning firms, the impending changes to third-party data collection underscore the need for a more nuanced approach.

?By focusing on cultivating warm audiences and leveraging first-party data, firms can adapt to the evolving landscape of digital marketing, driving meaningful connections and sustainable growth in the process.

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Conclusion

In conclusion, navigating modern consumer behavior requires financial planning firms to adopt a holistic approach that prioritizes education, aligns with consumer values, and leverages social selling programs.?

Financial planning firms and other financial service providers now face several bottlenecks in their business operations.?

One significant pain for them is the struggle to drive sales as they battle to adapt to modern consumer behavior, leading to decreased client acquisition, low retention rates, and stagnant business growth.?

This appears as a set of problems that include diminishing returns on traditional sales tactics, high churn rates, and an overall sense of stagnation in the firm's growth trajectory.?

At the core of these challenges lies the inability to effectively engage with today's consumers who prioritize value, education, and personalized experiences.

If you have found yourself asking these questions as a business leader?

1. How can we attract and retain clients in an increasingly competitive and digitally driven landscape?

2. What strategies can we implement to differentiate ourselves from competitors and stay relevant in the eyes of our target audience?

3. How can we adapt our marketing approach to align with the changing behaviors and preferences of modern consumers?

We address these challenges by offering a comprehensive suite of solutions tailored to the needs of firms who are looking to be the “Apple” of their industry while creating amazing profit?

?The marketing approach we implement for clients encompasses education-based marketing strategies, the cultivation of warm audiences through media assets, and leveraging first-party data to inform personalized marketing messaging to drive client acquisition and brand loyalty..?

By prioritizing value, transparency, and client engagement, we empower firms to build meaningful connections with their audience, drive sustainable growth, and stay ahead of the curve in today's dynamic market.

Because, let’s be clear, If financial planning firms as well as other financial service providers choose to do nothing and maintain the status quo, they will fall further behind competitors and miss out on valuable opportunities for growth and innovation.

?In two years, they will find themselves grappling with the same challenges they face today, leading to increased frustration, dwindling market share, and missed revenue potential. And if you are a challenger brand such as a fintech or insure tech, 2 years is a runway you can’t afford because that is enough time to lose the wind under your wings

To avoid this scenario, we urge financial planning firms to take decisive action today.

?By partnering with us, firms can access the tools, resources, and expertise needed to navigate the complexities of modern consumer behavior, drive meaningful connections with their audience, and achieve sustainable growth in today's competitive landscape.

?Don't wait until it's too late—seize the opportunity to transform your business and thrive in the digital age.

Find out how we can support you here

About The Author

Tanya Kabuya is a skilled operator and entrepreneur with a strong drive for revenue growth and sustainable business scaling. She has vast experience in the technology industry and currently serves as the founder and CEO of a firm that focuses on revenue enablement for tech-enabled companies and startups. Her passion and expertise make her a valuable resource for companies looking to achieve their revenue goals.

Her expertise lies in helping these businesses achieve profitable growth by implementing effective revenue strategies and building high-performing revenue teams. One of her key objectives is to empower founders by removing them from sales roles, allowing them to focus on strategic vision and overall business development.

Through her firm, Tanya specializes in creating turnkey solutions that enable businesses to scale efficiently and prepare for successful exits at high multiples. Her hands-on approach and deep understanding of the challenges faced by tech-enabled businesses and startups make her a valuable partner for businesses looking to achieve long-term success in today's competitive market.