As the next generation of investors, financial companies need to understand the best ways to market to Gen Z and Millennials. These tech-savvy and visually oriented demographics require a different approach to traditional marketing techniques. Here are 4 action points to consider for reaching Gen Z and Millennial investors.
Why Millennials and GEN Z are Your Future UHNWI Clients
Millennials (born between 1981-1996) and Gen Z (born 1997-2012) are the largest and most diverse generations in history, and they are rapidly becoming a significant force in the financial world. As the younger generations begin to enter their prime earning years and accumulate wealth, they are increasingly becoming the target demographic for luxury brands and financial services companies.
Millennials and Gen Z make up a significant portion of the world's population, and this trend is expected to continue as they enter their prime earning years. The impact of their spending and investment patterns will be significant, as Millennials, for example, are expected to inherit an estimated $30 trillion from their baby boomer parents. This creates a significant potential market opportunity for brands to tap into.
Both Millennials and Gen Z are digital natives and are comfortable with technology, making them ideal candidates for online investment and financial services. They also tend to be more tech-savvy and informed about financial products and services, making them a valuable target for fintech companies.
Different attitudes towards wealth and investing compared to previous generations make them more focused on sustainability, impact investing, and socially responsible investing. Young investors are more likely to be loyal to brands that they have a strong relationship with and that align with these values. By fostering a robust relationship with them through a well-planned communication strategy, brands can turn these individuals into valuable, long-lasting customers.
Reaching Millennial and Gen Z investors is important for brands because they represent the ultra-high net worth individuals (UHNWI) clients of tomorrow.In the subsequent chapters, we will delve into how companies can harness the power of digital marketing tactics to capture a vast and expanding target demographic, align with evolving perspectives on wealth and investment, and foster brand allegiance with the upcoming generation of affluent investors.
TIP #1 : Ensure Your Social Media Presence
In the digital age, social media has become a key tool for businesses to reach and engage with their target audience. For companies looking to reach the next generation of investors, having a strong social media presence is essential. Millenials and Gen Z, in particular, are highly active on social media and use it as a primary source of information and communication. By establishing a presence on popular social media platforms such as Instagram, TikTok, and Snapchat, companies can connect with them and build brand awareness and loyalty.
Social media allows companies to interact with their audience in a more personal and authentic way, by sharing behind-the-scenes content, promoting their products and services, and engaging in conversations with their followers. This helps to build trust and credibility with potential investors, who are more likely to invest in a company they perceive as transparent and trustworthy. Additionally, social media provides an opportunity for companies to showcase their corporate culture and values, which are increasingly amongst these generations.
Check out this article from the World Economic Forum reviewing data from the Global Web Index for more information about social media usage by generation.
TIP #2 : Build a Comprehensive Social-Media Content Strategy
In addition to having a strong social media presence, having a clear and effective digital content strategy is also critical when reaching Gen Z and millennial investors.
To effectively reach the Gen Z and millennial audience, companies need to develop a content strategy that aligns with their target audience's interests and preferences.
The 3 E's rule, as suggested by Jenn Donovan, which involves entertaining your audience, engaging them with valuable content, and educating them, can serve as an impactful starting point for your content strategy.
It is interesting to note that each social media platform is unique and requires a different approach in terms of content strategy. For instance, LinkedIn’s content tend to be serious and professional, while on the other hand, TikTok is a more lighthearted and fun platform, making it suitable for creating entertaining and engaging content that can go viral. As a noteworthy example, both KFC España and Lotus Cars have managed to achieve remarkably high engagement rates through their TikTok content strategies. By creating funny and relatable content specifically tailored to the millennial and Gen Z audience, they have considerably improved their brand awareness.
Influencer marketing is another effective way for brands to reach out to this demographic on social media. Companies can collaborate with social media personalities who resonate with their target audience and have a significant following. For example, a financial services company can collaborate with a popular financial advisor on Instagram to reach out to a younger demographic of investors.
Building a comprehensive digital content strategy can be time-consuming and resource-intensive, and requires ongoing content creation and updating. This is where a branding and communication agency can come in and help companies effectively reach their target audience by leveraging their knowledge of the latest marketing and branding trends and technologies. Working with a specialized agency allows companies to take advantage of their expertise and resources, free up time and giving them the opportunity to focus on their core business activities.
Another advantage of working with an agency is that they can help companies reach a broader and more diverse audience, by combining multiple communication and marketing strategies.
TIP #3 : Make Information Accessible and Simple
By prioritizing information accessibility and simplicity, brands can better engage with this group of consumers and build long-lasting relationships with them.
One of the key aspects of an accessible content strategy is a user-friendly digital platform. Millennial investors are tech-savvy and expect a seamless experience when they interact with a brand's digital touchpoints, whether it is through their website, mobile app, or social media profiles. This means that the platform must be easy to navigate, with important information displayed prominently and easy to find.
Clear and concise communication also plays its role, as this demographic values plain language and prefers to receive information in a format that is easy to understand. By communicate in a direct, simple, and to-the-point way, it not only makes the information easier to digest, but also helps to build trust with the consumer, which is essential for forming long-lasting relationships.
In addition, brands should also consider the type of information they are sharing with their audience. Millennial investors are looking for relevant, trustworthy, and up-to-date information, so companies should provide this in a timely and accessible manner. This may include financial information, market trends, and insights into the brand's strategy and plans for the future.
TIP #4 : Personalize your Marketing
The need for personalization has increased in the world of marketing, especially when targeting millennial and Gen Z investors. These younger generations have grown up with technology at their fingertips, and they have come to expect a high level of customization and personalization in their interactions with brands. They want to feel like their needs and preferences are being considered, and that the companies they interact with are taking the time to understand them as individuals.
One way to personalize your marketing efforts to reach this demographic is through targeted email marketing campaigns. By segmenting your email list and tailoring your messages to specific groups of subscribers, you can ensure that each recipient is receiving content that is relevant to their interests and needs. This not only makes your emails more engaging, but it also increases the likelihood that the recipient will take action, such as making a purchase or following through on a call to action.
As we mentioned in a previous chapter, social media platforms, such as Facebook and Instagram, offer powerful targeting tools that allow you to reach your desired audience based on demographics, interests, and behaviors. By creating ads that are tailored to the specific interests and needs of your target audience, it is possible to increase the likelihood that this target audience will engage with your content and ultimately become a customer.
In addition to these tactics, it is also essential to regularly gather feedback and insights by regularly conducting surveys, focus groups, and other forms of research. These insights can be used to continually improve your marketing efforts and provide the best possible experience for your target audience.
International top brands such as Starbucks and Amazon have demonstrated the importance of understanding their customers' needs and preferences in order to deliver a personalized experience and build strong relationships with their target audience.
Starbucks has been a pioneer in personalized marketing, and they have used their mobile app to offer personalized rewards and promotions to customers. For example, they offer custom drink recommendations based on past purchases, and they send targeted promotions to customers based on their location and past purchases. Check out this article by Michael Beausoleil to discover how the Starbucks app is design perfection.
Amazon's personalization features, such as personalized product recommendations and custom email campaigns, have helped them become one of the largest e-commerce companies in the world. By using data and algorithms to understand their customers' needs and preferences, they are able to provide a highly personalized shopping experience that keeps customers coming back.
About Highway 61
We at Highway 61 are a team of professionals – creative minds with a data-based approach, using cutting-edge technology to help customers thrive. We embrace the new digital communication opportunities in the metaverse and caress the analog personal encounter.
Our goal is to create a customer journey that inspires your customers and enables your business to grow. We not only support you in establishing a meaningful connection with your target audience and differentiating yourself and your offerings from the competition. We focus on emotions and results and always keep a rigid eye on budget adherence.
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