In a recent ThinkAdvisor.com report, Cerulli Associates for asset managers indicated that the “medium is just as important as the message when marketing to millennial investors. Younger investors need to be seen separately…it is crucial to identify products that are more likely to appeal to them…important differences can lie in the medium as much as the offering”.
The report on British millennials, based on studies from two universities (German and British), indicated that this specific group, which uses social media, actually spends more time reading print newspapers than online and app editions.
ThinkAdvisor.com also reported that Vanguard successfully spent more on social media than traditional marketing when they engaged in launching their online platform in the U.K. last year. Vanguard uses the data to identify specific investors to provide suitable investment advice.
Other European sources report that generalizations can be deceptive, citing a case where the “typical customer” was a 40ish male rather than a younger millennial. Another report indicated that the accepted millennial preference for ESG funds isn’t “necessarily a major priority for them” and Cerulli advised to “think twice about spending disproportionate amounts of money suggesting that such considerations are the preserve of the young.”
Even though millennials reportedly have less money, Vanguard’s U.K. platform reports that they are not necessarily averse to risk. Young investors appear to cope better with the risks of the equity market than they seem to be.
One very important thing to note is although millennials tend to prefer direct-to-consumer platforms, as they get older, they lean towards following the older generations and prefer advice/assistance in dealing with the complexities of retirement financial information.
