According to a report by management consulting firm McKinsey & Company, Gen Zs spend most of their time on social media as compared to other generations in Asia. The report states that a third of the generation spend six hours or more a day on their mobile phones.

Gen Zs, who are also known as digital natives, are essentially a generation that was raised on smartphones and laptops, and they make the internet an integral part of their daily lives. Evidently, the same report found that 27% of Gen Zs don’t feel comfortable going an hour without accessing the internet. For many in this generation, the digital experience is the human experience.

To win their hearts, service providers and companies need to adapt to this digital shift and learn how to communicate with them. Financial advisors also need to be able to grasp and learn how to communicate effectively to ensure continuous success with this new and emerging young generation of potential prospects.

Ee Kah Teik, a four-year MDRT member and Alex Chua, a five-year MDRT member from Malaysia share their experiences on how they keep up their digital presence to connect with Gen Z clients.

1) Make use of digital tools and services when interacting with Gen Z

With the increase in digitalization, the need for physical paperwork has declined. Many young clients have turned to mobile applications to help them keep track of their policies and receive updates on their financial plans. This makes it easier for the clients to access the documents as and when needed. It also prevents them from making human errors when filling up forms, especially for those doing it for the first time.

Chua is seeing that more clients are interested in PowerPoint presentations with eye-catching designs, when it comes to viewing their financial plans. This is because clients can always view the presentation from their mobile devices and access it, unlike paper copies that can be misplaced. By digitalizing the plans and documents, it makes it easier for Chua to access them and answer questions at any given time. He says, “Digitalization has made me more organized and efficient when handling my clients and their paperwork.”

2) Learn to understand the Gen Z slang

To capture and maintain the attention of Gen Zs, it is advisable to use their lingo and informal conversation styles. Ee mentions, “When speaking with Gen Z clients, you don’t need to be too formal. Instead, use more trendy phrases to connect with them”. His go-to word is usually “Onz!” when he agrees or is on board with the situation, as his younger clients would be familiar with this common Malaysian colloquial expression. After chatting with his younger clients, Ee would usually ask them “what is the vibe like” to see how they are feeling about the conversation. By having a more relaxed conversation, financial advisors can gain a better understanding of how to approach their Gen Z clients. Clients and prospects are more likely to open up and talk more freely when they feel understood and heard by their advisors.

Furthermore, the inclusion of emojis and stickers has become an easy way to express one's feelings and ideas towards a situation. “I have been using more stickers recently when chatting with my younger clients and they seem to respond faster with stickers too,” says Ee. Social platforms enable one to customize their own stickers and even avatars for messaging, making it more engaging and interactive to communicate.

3) Be active on social media platforms

A report produced by Digital Business Lab 2021 found that TikTok, Facebook, Instagram and YouTube are the top four social media platforms that Gen Zs are most active on. In the same vein, a report by Nielsen shows 70% of Gen Zs consume their news from social media.

Social media has been playing a vital role in educating Gen Zs on pertinent topics such as personal finance, politics, and current affairs. As such, this is an opportunity for financial advisors to use social media to promote their services in financial planning. Furthermore, this generation tends to conduct research online as part of their decision-making process.

By being present on social media, prospects would be able to find advisors on these platforms. “I made a new Instagram account specifically for work after many of my new Gen Z clients asked for it,” said Chua. He also noticed that a few new clients approached him after finding him on Instagram and viewing the content he posted. “The intention of me posting infographics is to educate anyone who needs help with making financial decisions. That is why my account is also public so that everyone can see it and get the knowledge they need,” he shares. Financial advisors can also make use of hashtags to help boost the algorithm on their social media, allowing them to reach out to future clients.

In conclusion, accessibility and adaptability are the driving forces to engage with Gen Z clients. It is essential that financial advisors are flexible in all areas of digital communication and step up their digital game with Gen Zs, be it from going digital to the language used to how active they are on social media.

Contact: MDRTeditorial@teamlewis.com

How to step up your digital game with Gen Z