22 April 2022

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Millennials, consultants and generational handover

Author: Luigi Campopiano

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How to deal with a Millennials-proof generational shift? Today, the data tell us that about 66% of children change the reference professional once they have received the inheritance (more recent studies bring these figures to 90%). The main reason why this happens is that a relationship has not been established between the consultant and the heirs. This is essential to better face the generational shift, both for the client and for the consultant. It is necessary to:

• Understand the added value and the tools made available to them;

• Increase the chances of increasing, as well as maintaining, the assets under management.

The three keywords of the generational shift are:

• Preparation. Be prepared to manage the transfer of wealth and make sure you have the time to service new and different clients (even younger ones) and have the necessary resources to meet their needs;

• Responsibility. the consultant must empower his clients, convincing them to think and plan the transfer of assets (often they do not believe that it is necessary to discuss it or that they are not wealthy enough to address these issues). It is important to help them understand that it is essential to ensure the simplicity of a future generational change, regardless of how much money is available;

• Involvement. Establish a relationship with your clients' children, help them understand how the work that the consultant carries out helps parents, and make them understand that continuing to work with you is a sensible and advantageous choice.

These three concepts are rooted in communication: even for Millennials the desire to develop a relationship of trust with their consultant remains central and their needs are not so different that they have to totally change the way in which consultancy is done. However, for this category of individuals, communication is often different than for previous generations (in Italy, 39% of Millennials rely on online research and reviews when choosing their consultant and 60% agree that social media are an essential means of communication). A starting point can be the creation of short video content that meets their most pressing needs (inserting a video in an email can increase the likelihood of it being read by 65%) and the use of platforms such as Facebook, Instagram, Twitter, LinkedIn, and TikTok.