SEATTLE--(BUSINESS WIRE)--New data released today by D.A. Davidson & Co.’s Individual Investor Group suggests that financial advisors are more focused on attracting Baby Boomer clients than any other generation. The survey of more than 100 financial advisors revealed that 59 percent of respondents are most focused on attracting Baby Boomers (age 52 – 70) as future clients. More than half (53 percent) of these respondents believe that Baby Boomers are the most attractive generation because of the advice needed based on their current life stage. The findings underscore a significant opportunity for advisors to engage younger clients.
“Advisors have done a terrific job helping Baby Boomers reach their goals while navigating the financial markets. As we look to the future, we have a tremendous opportunity to advise Gen Xers and Millennials for decades to come,” said Michael Purpura, President of D.A. Davidson & Co.’s Individual Investor Group. “From communication preferences to the unique challenges and opportunities facing these generations, Gen X and Millennials play a growing role in the future of the advisory business.”
While the majority of respondents are most interested in attracting Baby Boomers as clients, one third (37 percent) of those surveyed said they are most looking to attract Gen Xers (age 34 – 52) and only 2 percent say they are primarily focused on attracting Millennials (aged 18 – 33). Roughly half (52 percent) of those looking to attract Gen Xers as future clients say that this generation is most attractive because of their future earnings potential; and one third (35 percent) say that it is the advice needed based on life-stage that makes them appealing. Notably, 62 percent of advisors surveyed believe that younger generations are not working with advisors because they think they do not have enough investable assets.
Communicating with Clients
When it comes to communication, advisors believe that their clients most value the personal touch that comes with working with them. The majority (51 percent) of financial advisors believe that the best way to engage with their clients is through in-person meetings, while 19 percent believe that text and/or email is the most effective form of communication.
When the data is broken down generationally, 68 percent of those looking to attract Baby Boomers as clients say that in person meetings are the most effective way to communicate. Conversely, among those most focused on attracting Gen X clients, 41 percent believe that engaging with them by text and/or email is the most effective way to communicate. Two-thirds of Millennial-focused advisors agree that text and/or email is the most effective way to communicate with their preferred target clients.
“As advisors begin to focus more on appealing to and attracting younger clients, it’s critical to consider how they want to be engaged,” said Andrew Crowell, Vice Chairman of the Individual Investor Group. “It comes as no surprise that a 40-year-old Gen Xer may prefer communicating with their advisor in a different way than a 65-year-old Boomer. It’s up to advisors to personalize the experience for their clients.”
The survey of 125 financial advisors was fielded in-person and executed by D.A. Davidson during April of 2016.
About D.A. Davidson & Co.
Founded in 1935, D.A. Davidson & Co. is the largest full-service investment firm based in the greater Northwest. D.A. Davidson is part of D.A. Davidson Companies, an employee-owned financial services holding company based in Montana with more than 1,300 employees working in 24 states. The company, which is celebrating its 81st anniversary of serving clients, offers straightforward advice, personalized solutions and industry expertise.
Also part of D.A. Davidson Companies are D.A. Davidson Trust Company, a trust and wealth management firm; Davidson Investment Advisors, a professional asset management firm; and Davidson Fixed Income Management, a registered investment adviser offering fixed income portfolio management and other advisory services.
For information, visit www.davidsoncompanies.com or Twitter: @dadavidsonco
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