Last week, I shared with you more about Generation D. This segment’s members are well educated, highly digital and interested in furthering their investment knowledge, so you probably think they’re also only interested in interacting with advisors virtually, right? Not so say the results of our survey of 1,200 Gen D investors in Europe. results of our survey of 1,200 Gen D investors in Europe.
Don’t scrap traditional means of contact yet
Our survey results point to some pretty strong numbers around Gen D investors’ contact with advisors. In fact:
- Nearly 71 percent of respondents prefer face-to-face interactions with their advisor.
- Some 68 percent prefer phone conversations.
- Only 15 percent use social media platforms, such as Facebook or Twitter for interaction with an advisor.
- Only 32 percent of respondents believe that they can have a beneficial relationship with their advisor if it is conducted exclusively online, without both parties ever being present in the same place, at the same time.
While it’s true, investors prefer elements of a traditional investor-advisor relationship, more than three-quarters of respondents said digital technology would not adversely affect the overall quality of the relationship. What this implies is that investors feel traditional and digital relationships can co-exist.
Knowledge is power
Our survey also found that investors across Europe report being less informed about investing than they would prefer. In fact, 68 percent of Gen D respondents stated they are neutral or lack knowledge about investing. The findings reveal an opportunity for firms to differentiate themselves through value-added services.
- Almost half—48 percent—of those surveyed use digital tools to become more educated about investing.
- Knowledgeable investors reported holding a broader range of investment products and securities, regardless of affluence level.
- Knowledgeable investors are more satisfied with their advisors, and are more likely to report that their advisors understand their needs.
What’s clear is firms that take advantage of the digital tools that have a positive effect on investors, while maintaining aspects of a traditional investor-advisor relationship, can increase their value proposition to their clients. So, what are investors using digital tools for and which ones should advisors focus their attention on? Next week I’ll conclude my three-part series by exploring both these areas.
Until then, to learn more, read: