How can advisors unlock relationships with high-growth client segments?

investmentnews.com:

Are hybrid investors, millennials, Gen Xers and women prime targets for advisors build new client relationships – or maybe event strengthen existing ones?

For advisors who know how to pay attention and tailor their strategies accordingly, the answer is a resounding “yes,” according to a new study from State Street Global Advisors.

Drawing from a survey of roughly 1,500 individual investors across the US, State Street’s 2024 Influential Investor Segment Study offers insights into how advisors can effectively engage with these groups by considering both traditional client interactions and modern technological options.

“By strategically integrating these high-growth investor groups into their client segmentation strategies, advisors can enhance their ability to attract and retain clients, gaining a distinct competitive advantage,” Brie Williams, head of practice management at State Street Global Advisors said in a statement.

The study found two-thirds of hybrid investors, who get advice and have at least one self-directed account, see a good tech platform as a prime consideration for choosing an advisor.

“While 67 percent collaborate with an advisor on investment decisions, they remain empowered to oversee a portion of their portfolio independently,” Williams said. “In fact, 49 percent cite the ability to control their investment decisions as a significant advantage of using self-direct accounts.”

While 60 percent of hybrid investors compensate their advisors based on AUM, 45 percent would consider switching advisors if their fees were to increase. Being more cost-conscious, a higher share of hybrid investors also use ETFs in their portfolios (47 percent) compared to advised-only (27 percent) and self-directed only