The financial services industry could learn a few key lessons from the marketing strategies used by insurance companies, according to a demographer.
"I'm always impressed by insurance companies because they seem to get it right. They are very astute at connecting with the zeitgeist, the mindset of the generation and the culture of their target market," KPMG partner Bernard Salt told InvestorDaily.
"Advertising, branding, marketing collateral and imagery is very important in positioning and connecting with generation Y, or any market segment, but think of repackaging your product.
"It's the same message - the human need for financial security, whether that's savings or insurance or investments, will not go away. It is required by people who move into household formation. The product is sound, what you need to do is reengineer it in a 21st century, generation Y milieu."
Salt said there would be an increase in the amount of financial products that are targeted towards generation Y.
"I can certainly see a lot of advertising shifting towards the generation Y focus. For example, Youi Insurance ads are very gen Y-focused - the ads are very cool, very edgy, very of the moment and it speaks to and connects with the new generation but it's selling insurance," he said.
Young graduates in financial planning also have the potential to connect better with younger clients, Salt said.
"I think that people in their 40s and 50s are great if they're connecting with baby boomer clients, but there's something offputting about a 54 year-old sitting down with a 27 year-old and talking about a life plan," he said.
"I think there is a requirement for a new generation of planners - late 20s to early 30s - that will connect more naturally with the needs, concerns and issues of a younger generation.
"It's time for baby boomer planners to waft on with their baby boomer clients into that special place, but it's time for generational change."
