A Quick Guide for Marketing to Millennial and Gen Z Investors

The financial industry has seen significant shifts in recent years, particularly in its clientele. The Millennial (born 1981–1996) and Gen Z (born 1997–2012) generations are now emerging as influential segments in the investor landscape. For Canadian wealth professionals and financial advisors, understanding the preferences and habits of these young investors is crucial.

According to research from the Ontario Securities Commission and Get Smarter About Money, 4 out of 5 Millennials are saving but only 1 in 2 are investing — this may be a result of Millennials’ focus on paying off debt and prioritizing home ownership. As well, 6 in 10 say they don’t understand enough about investing to get started and 3 in 10 say they don’t trust big banks or investment firms.

5 tips for marketing to younger investors

1.?Embrace technology: Millennial and Gen Z investors grew up with technology at their fingertips. Offering intuitive digital platforms, user-friendly apps and online advisory services can be a game changer.

2.?Prioritize financial education: Younger people, like their older counterparts, value knowledge. Hosting webinars, creating educational content, or offering one-on-one consultations, particularly with wealth professionals closer in age to these potential investors, can position you as a trusted source.

3.?Personalize the experience: Generic marketing won’t cut it. Tailor your communications based on individual goals, risk tolerance, interests, and life milestones. For instance, sending Gen Z prospects information about wills is probably not a good idea, but emailing them a video or short article on saving for a down payment on a first home may very well be.

4.?Highlight social responsibility: Surveys reports that 90% of Millennials are interested in responsible investing. Emphasize ESG investment options or showcase your firm’s corporate social responsibility initiatives.

5.?Engage on social media: These generations spend significant time on platforms like Instagram, TikTok and YouTube. Engage them with relevant content, financial tips, and updates about market trends.

Dos and don’ts for marketing to Millennials and Gen Z

·?Do engage in transparent communication. Younger generations value authenticity and are often skeptical of traditional marketing tactics. Be open, honest, and transparent in your messaging.

·?Do understand the importance of peer reviews. Encourage satisfied clients to leave reviews and share their positive experiences on platforms like Google and Yelp.

·?Do be responsive. Millennials and Gen Z expect swift replies and active engagement. Whether it’s responding to an email or a comment on social media, be prompt.

·?Don’t use jargon. Overly technical language can be a turn-off. Speak in terms they understand and relate to.

·?Don’t underestimate their knowledge. While they might be young, many have already accumulated a wealth of information about investing, especially given the abundance of online resources.

·?Don’t rely solely on traditional marketing. Billboards, print ads or social media ads may have less impact. Instead, focus on influencer partnerships, video content and other digital marketing strategies.

Millennials and Gen Zers represent a massive opportunity for Canadian wealth professionals. By understanding their needs, leveraging technology, and employing targeted strategies, advisors and wealth professionals can successfully tap into this burgeoning market.

The iA Private Wealth marketing team has resources to support you and your firm and bolster your online efforts. Please reach out to us — we’re happy to help.

Patti Houghton

AVP, Marketing

iA Wealth