Client education is a crucial part of a financial professional’s job, and is necessary for long-lasting relationships with consumers. Historically, in-person meetings and the occasional phone call formed the backbone of the relationship between clients and producers, but that’s no longer the case. The Internet has opened up an entirely new frontier for financial professionals who want to reach out to consumers, grow a client base and deepen connections to existing clients.
Using new modes of communication, alongside traditional methods is a delicate balancing act that requires an understanding of client preferences. Age factors into consumer desires regarding communication, and the most successful financial professionals will tailor their communication strategies to the whims of consumers from each demographic group.
The need for education
Too few consumers understand how much they need to save for retirement, and that knowledge gap may cut into financial professionals’ client bases. By educating these consumers, financial professionals may motivate new client referrals and engagement. According to a LIMRA survey, less than half of survey respondents across all age groups said they knew how much they needed to save for retirement.
That confusion is typically associated with younger consumers or older individuals outside the high net worth bracket, but it turns out that even those with money may be behind in their planning. Data from industry insight firm Hearts and Wallets demonstrated that 47 percent of high net worth individuals with investable assets between $500,000 and $2 million said they have difficulty with retirement planning. These individuals may not be working with a financial professional, and might not realize how a producer can help them.
An online opportunity
People want information about retirement, and the confusion regarding retirement strategies extends to every part of the population. Financial professionals can eliminate confusion and drive business by reaching out to consumers using online channels.
It’s tempting to think of online communication as a way to connect with young people, but the web is an essential research tool for people throughout the market. In fact, a Pew Research poll found the Internet is the top resource for information-gathering boomers and seniors. Financial professionals who establish a strong online presence that aims to educate consumers may find they can connect with new clients from across several age ranges and economic groups.