Three steps to a next-gen client relationship

We can’t ignore them any longer. Millennials and Gen Z Canadians are accumulating wealth, they’re entering their peak earning years and they are positioned to inherit significant generational wealth.

These are the next-gen clients. They need professional advice, and their relatively young age can have a positive effect on your book’s age profile and depletion rate — the percentage of accounts that are paying out. On both those measures, these prospective clients will boost the value of your book.

Many established advisors have failed to connect with young adults. This can have a profound impact on business growth. Studies show that next-gen clients are twice as likely to refer your business, relative to clients between the ages of 55 and 74.

Next-gen clients take effort, however. If you can demonstrate value early in the relationship, you’ll be far better able to win their business. Follow this three-step process.

1. Target the right next-gen clients

Include the children and grandchildren of existing clients in the services you offer. By engaging more directly with multiple generations, you’ll add greater value and build relationships with the younger set.

And while you’re warming up those leads, this hands-on approach will provide a direct line of sight into the kids and grandkids. You’ll be perfectly positioned to identify which of them are worth your time.

Before conducting any outreach, identify existing clients you can provide enhanced value to in this way. Consider clients who:

• will be leaving a significant inheritance to their heirs;
• will be transferring or selling their business to their adult child or children; and
• whose child is the executor of their will.

2. Ask for an introduction

Develop a crisp, concise value proposition to share with your client. This will help establish your credibility and encourage clients to share more about their children or grandchildren.

After presenting your value proposition, explain the service you want to offer and why it’s important that their kids or grandkids be included in the process. Then, ask for the introduction.

The messaging should be consistent with how you communicate with clients. No need to be overly formal, for example, if you normally communicate to them in a casual tone.

Include a clear call to action, too. Show your client the process for meeting the next-gen prospect and highlight how they can facilitate an introduction.

3. Integrate next-gen clients into your existing service plan

This doesn’t mean working with every one of your clients’ children and grandchildren. Focus on clients who fall into one of the three niches noted in step one. Present this as a premium service available to your best clients.

By integrating next-gen clients into your servicing plan, you’ll be able to ask for introductions more easily when the time is right. In some cases, you will meet these young prospects organically through client interactions.

By deepening the value you provide to existing clients through their next-gen children and grandchildren, you’ll generate a new growth engine for your practice.