How asset managers can get Gen Z on side
Gen Z make up more than 32% of the world’s population and are predicted to become the wealthiest and most educated generation. By 2031 Gen Z’s income is supposed to increase by 5x, overtaking Millennials’ income power, and they will benefit greatly from the eventual ‘great wealth transfer’. Large, educated and wealthy, Gen Z shouldn’t be written off by asset managers and instead should be targeted through a tailored content marketing strategy. By gaining the trust and loyalty of Gen Z now, your asset management firm can benefit greatly in the long-term.
What makes Gen Z different?
Gen Z make up more than 32% of the world’s population and are predicted to become the wealthiest and most educated generation.
If your asset management firm wants to target Gen Z, you need to reconsider your usual content strategy. Generation Z are unique in their values and interests and therefore so should your brand marketing. Their interests are intertwined with politics, the environment and technology. To stand out from the crowd and acquire a younger demographic you need to understand who they are.
What should asset managers look to target?
- Market your ESG commitments – 87% of Gen Z will consider a firm’s ESG track record, not just their ‘green marketing’. Your asset management firm needs to commit to environmental friendliness, with younger generations more aware and concerned about the impacts of climate change. Additionally, with half of Generation Z being ethnically diverse and from minority communities, your social and ethical commitments will also be a focus.
- Transparent and clear communication – Market your products and services clearly and transparently. Hiding aspects of your business practices will foster disloyalty and create a negative brand image.
- Educational content – While they will become the wealthiest and most educated generation, many are new to investing and need to be educated on the topic. Educational content can bridge the approachability gap and build authentic and loyal relationships.
- Personalisation – Gen Z are the least concerned generation about their data being used by companies. This isn’t to suggest they aren’t concerned with their data being safe but indicates an opportunity for personalised services to create a satisfying customer experience.
- Digital first approach – Growing up with technology, they expect a high-quality digital experience. Ensuring investing and wealth management can be accessed easily online will ensure you acquire new customers and foster brand loyalty.
Target Gen Z where they reside
To ensure your marketing strategy is effective you need to create content where Gen Z resides. Being a technological generation, social media is the place your asset management firm needs to be. In fact, most people in Gen Z have been on social media for half of their lives. As the years pass their social media usage continues to rise with 65% of Gen Z increasing their social media usage over the past year, and 45% expecting it to continue to increase over the next few years.
Your asset management firm should be creating fun, enjoyable and educational content across social platforms. In fact, unlike any other generation, Gen Z cites ‘killing time’ rather than ‘connecting with friends and family’ as the reason they use social media, so your content should reflect this by being eye-catching, interactive and enjoyable.
With most of Generation Z on TikTok and Instagram as their number continues to decline on Facebook, these are the platforms you should be targeting. This means short-form videos and images are the content you need to be predominantly creating.
Asset managers and younger generations
As younger generations continue to grow older and gain greater economic power, your asset management firm should look to acquire this new market segment. At the core of it, Gen Z’s interests and values are different from previous generations. This means you need to create tailored content as well as products and services that align with their unique views. By acquiring Gen Z investors your asset management firm can reap long-term financial rewards.