Financial advisors who target the senior market find themselves selling to a very worried group of consumers. A new group of consumers is beginning to move into the senior market – older baby boomers. As a result, financial advisors are evaluating the best way to reach out to prospective clients.
Most seniors are interested in preserving assets and they are looking for vehicles that provide a return with limited or no risk to their capital. As a result, financial advisors see their sales increasing this year as follows:
- Life Insurance 66.5%
- Long Term Case 48.8%
- Indexed Annuities 47.6%
- Medicare Supplements 33.5%
In response to this year's Senior Market Advisor Industry Survey, financial professionals also noted that their female clients want guarantees. Male clients are more likely to think they can get their financial guidance for free on the web. Advisors find they need to be more aggressive when it comes to convincing men of the need for coverage. Advisors are also finding that they need to work harder to get more clients these days and 41% plan to increase their advertising this year.
Advisors say that more seniors are tech-savvy but that doesn’t mean an emphasis on social media will build a practice. Currently, about 54.6% maintain a website or blog. About 1/3rd claim that new technology has ‘complicated things.’ One of the most consistent marketing strategies for this group of professionals has been partnerships with related professionals like attorneys (46.3%) and direct mail (28%). This year, financial advisors expect to use direct mail programs heavily to target consumers who are turning 65 and need to learn more about Medicare and Medicare Supplement policies. The return on this format has historically been good and advisors expect that trend to continue.
Other advisors note they have cut back on newspaper advertising because the risks they must disclose in the ad copy sometimes scares people. Look for these professional to increase both their direct mail and e‑mail effort as they attempt to maintain the personal touch with their clients this year.[Source: Wood, Maria. 2011 Senior Market Advisor Industry Survey. Lifehealthpro.com. 1 Dec. 2011. Web. 14 Feb. 2012]