Intergenerational client referral vital
Advisers and accountants must develop their intergenerational client base rather than just servicing pre-retirees to avoid being pigeon-holed as just a retirement business, according to Count Financial.
In a commentary, the firm said the most effective way for advisers and accountants to build their intergenerational referrals was through existing clients. It referred to a 2013 Nielsen study of ‘Global Survey of Trust in Advertising', which said 84 per cent of consumers across all generations trusted personal recommendations over advertising.
"If your clients are mainly retirees and pre-retirees, their need for your services is likely to decrease as time marches on. The hard truth is, unless you have a new generation of clients to take their place, your business could struggle in the future," the firm said.
It also warned that accumulators would go elsewhere to attain the services they needed.
Generation X clients could be the children of your retired clients, who might be thinking about retirement themselves. While they would be financially savvy, they would also be sceptical, which meant advisers would need to prove their value.
Generation Y were technology-savvy with strong career and lifestyle goals, and preferred online channels for banking and shopping. This meant the industry needed to cater and personalise their digital solutions to suit this cohort.
Advisers and accountants first needed to change the perception that they were just a retirement business and ensure clients of every cohort they had the expertise to help them.
"Brochures and posters in your office can plant the seed in your clients' minds that their children and grandchildren could benefit from your services — whether it's growing their savings, managing their tax liability, protecting their assets or investing for the future," Count Financial said.
Advisers must also include the message through their websites, client newsletters, emails and other modes of communication.
Recommended for you
Platform HUB24 has reported $100 billion funds under administration in its latest quarterly results, helped by a 90 per cent rise in platform net inflows.
Progressing digital advice and seeking breakeven in the advice division are part of AMP’s goals for the upcoming financial year as it approaches 1,000 financial advisers in its licensee.
The Rask Group, in partnership with InvestSMART’s new investment platform, has announced three ETF strategies, aimed at empowering financial advisers to create and manage their own ETF portfolios.
Research by Wealth Data has found exactly half the number of advisers who have worked at closed AFSLs in the current financial year remain on the ASIC FAR.
