than retaining a client, then this is the trillion-dollar question. To be
part of this wealth transfer, capital markets need to come to the
new investors in the places where they live and work.
Professors George S. Day of the Wharton School and
Christine Moorman of the Fuqua School of Business, at Duke
University, developed a concept of thinking which sheds light
on this issue through their “Outside In” theory. They state that
there are two thought paths to developing a strategy: The
first strategy and the most common one is “Inside-Out.” This
thinking basically relies on maximizing gains on existing assets.
An Inside-Out organization asks questions like: How can we sell
more? Gain more share? Increase productivity? While efficiency
rises, the market shifts, the customer value disappears. By the
time the firm notices that they are not delivering on customer
value – it’s too late…and the client slips away.
An Outside-In organization ask questions like: How do we
deliver value to our clients? How are the needs of our customers
changing? How can we best leverage our brand and customer
assets? What new capabilities do we need?
How does a financial service provider use the “Outside-In”
strategy to attract Millennials? With such a diverse group, it can
be hard to know how to approach marketing to this generation.
However, by asking the above mentioned question, an organization
can acquire market insights that keep them ahead of the curve.
Also, there are certain characteristics that are shared between
nearly all millennials, and this is how you can address them:
1. Have a Mobile Presence
Having a mobile presence is paramount, given that over
90% of millennials in North America have a smart phone, it’s
essential when you’re targeting this generation. To excel at mobile
marketing, first consider the basics. Is your call to action clear,
even on a smaller screen?
2. Target social groups, instead of life stages
Millennials are the most non-traditional generation so far, and
they don’t value traditional life-stage advertising the way previous
generations did. Millennials are much more likely to have a strong
attachment to social identities than they are to strongly identify
with a specific stage of life.
3. Be relevant and engaging
While this applies to all generations, it’s required for
millennials. Most millennials have never known a world without the
Internet and social media. As a result, they’re the last group you
can expect to simply accept your message at face value and take
the action you request. Instead, millennials are focused on solving
real life problems through online research, both in search and
social media. This means that you need to be relevant, engaging
and build community as you share your products and services.
Otherwise, millennials will ignore you as just part of the inevitable
noise of a connected world.
These are also the fundamental tenets of effective equity
The Industry is Already Adapting
Millennials have already had an impact on capital markets.
They have begun to digitalize and socialize something that
hadn’t changed much in the previous 100 years, and equity
crowdfunding was born because of it. Democratized investment
means that companies are no longer dependent on the opinions of
venture capitalists and angel networks alone to get their ventures
off the ground. Millennial investors are empowered to vote with
their money, and are playing a larger role in Canada’s innovation
ecosystem. I can’t say that this alone will impact the investment
decisions following the greatest transfer of generational wealth, but
I can say that it will inevitably play a considerable part. Boomers
aren’t investing like they once did, and digital natives expect to
be able to make financial decisions served by technology. Early
adopters will be rewarded.
For more information contact:
1. Pigliucci, A., Thompson, K., & Halverson, M. (2015). The
“Greater” Wealth Transfer Capitalizing on the Intergenerational
Shift in Wealth (pp. 1-6, Rep. No. 12-1540 SL). Accenture
Wealth and Asset Management Services: Point of View.
2. Trillion Dollar Wealth Transfer - Myth or reality? (2012, February
8). Retrieved January 26, 2016, from http://www.newswire.ca/
3. Solomon, M., (2014). Forbes. “2015 is the Year of the Millennial
Customer: 5 Key Traits These 80 million Consumers Share.”
4. Day, G. S., & Moorman, C. (2010). Strategy from the outside in
how to profit from customer value. New York: McGraw-Hill.
5. Patel, S. (2015, May 18). 3 Essential Tips for Marketing
to Millennials. Retrieved January 22, 2016, from http://
“Millennials are the most non-traditional generation so far, and they don’t value
traditional life-stage advertising the way previous generations did.”