Marketing can be not only more sensitive, but also more effective, if it takes the backgrounds of the audience being reached in mind, suggested an expert panel at the recent NTSA Summit.
Panelists included 2018 NTSA President Tamara Indianer, Regional Vice President, Northeast, Lincoln Investment; Philip Kim, CRES, Divisional Vice President, Signature Wealth Concepts; Fred Makonnen, Division Vice President, Equitable Advisors; and Mahes Prasad, Private Wealth Advisor Managing Director, US Bank.
Panelists shared their experiences as members of minority groups, and noted that their experiences as members of those groups and those of their ancestors have given them insight into how best to approach, understand and meet the needs of potential clients.
The Value of Understanding
Panelists emphasized the importance of approaching clients with understanding.
“As you work with your clients, you have to understand their backgrounds and where they came from,” said Prasad. Indianer added that understanding how marriage and relationships are treated in the culture from which a client came and how that affects financial planning is helpful as well. And Kim observed that the lessons and values imparted as a child still affect one in adulthood, and that the ways in which successive generations are raised differ.
Outreach and Opportunity
Reaching out to minority groups and communicating with them takes sensitivity but also offers opportunity, panelists suggested. “The buying power collectively of underrepresented groups is growing faster than that of any other group,” Kim pointed out.
But there are challenges for the financial services sector in meeting that opportunity, Kim suggested. He said that part of the explanation for the poor savings rate of minorities and immigrants may be that they are reluctant to trust strangers with their hard-earned money, which would include reluctance to trust financial planners and managers. “Understanding this helps you serve the underserved,” said Makonnen, adding, “Communicating what financial services are to underserved communities will improve the situation.”
The Big Picture
“Be intentional” with relationships and with your practice, argued Prasad. “I can’t control reality. I can control my emotions, and how I raise my kids, how I respond to others. It’s a people thing,” said Makkonnen.
“If you believe that people are inherently good, progress can be made,” remarked Indianer.
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