A generation of emerging investors... overlooked?

In a story from Marketing Daily this week, an interesting pair of questions is asked: Has the investment industry overlooked an entire generation of new prospects? And are they doing enough to court Millennials? Click here to see the complete story.

Implications: This year, I’ve facilitated dozens of workshops we refer to as “Audience DNA” and “Consumer DNA” programs. In the DNA workshops, we mine through volumes of qualitative research to understand the demographics, lifestyle (nature) and affinities of various population segments and industry categories.

One category that is particularly interesting is banking and investments. We typically explore whether a financial institution is wiser to court “blue chip investors” (which I define as having at least a six-figure household income, and who pays for the counsel of a financial planner, accountant or full-service stock broker), or whether it might be wiser to consider reaching “emerging investors” (which I define as having an above-average income, but someone who does NOT yet have a financial planner, accountant, or full-service stock broker).

This challenge raises the perfect conundrum: The blue chip investor has more money, but is already a customer in the category. (To win their business, they’d first have to fire whomever they are using now.) The emerging investor has less money, but has nothing to unlearn, no habits that need breaking, and might therefore represent “a path of less resistance.”

Are your best prospects for the future the same as the best customers from your past?

Mike Anderson