401(k) Specialist Issue 2 - 2023 - 35

401(k) CLIENT CONNECTION
401(k) Business Growth: Understanding
Generational Shifts
By Rebecca Hourihan, AIF, PPC
EFFECTIVE COMMUNICATION is key for
growing your 401(k) business. And if you
can believe it, not everyone has the same
communication preferences. Each generation
likes to receive and consume information
differently. As you think about your business
and who your ideal clients are, it's essential to
consider which generation they belong to.
Baby Boomers: Today, Baby Boomers
have significant control over 401(k) decisions
and represent around 25% of the labor
market. However, with 10,000 Boomers
turning 65 every day, the retirement age
wave is upon us.
Boomers tend to prefer a more traditional
way of receiving information, such as phone
calls, newsletters or in-person meetings.
They also value personal interactions and
face-to-face conversations. Boomers tend to
be loyal to an advisor and appreciate consistency
in communication.
Gen X: Gen Xers are usually in senior leadership
positions, such as CFO or controller.
They are comfortable with technology and
prefer to use email and phone calls to communicate.
They are skeptical of salesy tactics
and value personalized messages where they
are seen as individuals. To nurture this group,
send educational emails that demonstrate
your retirement plan expertise and value-add
content such as checklists, plan sponsor
guides, and calendars.
Millennials: By 2030, Millennials are
expected to represent 45% of the labor
force. This generation has grown up to become
leaders of HR, technology and finance
departments.
Millennials are tech-savvy and are avid
users of social media platforms. Within
client communications, engaging with
Millennials is important, as they prefer to
communicate via text messages, social
media, and email rather than phone calls
or in-person meetings. Millennials appreciate
authenticity and transparency in
" Effective content
strategy depends on
understanding the
target audience's
preferences. "
communication, so it's best to take a more
conversational approach.
Gen Z: Gen Z is the true digital native
generation, and is more comfortable
with new tech than any other generation.
Gen Zers tend to use newer social media
platforms like Instagram, Snapchat and
TikTok, rather than Facebook or LinkedIn.
They prefer visual content such as videos,
memes, infographics and tend to have
short attention spans.
While these new job seekers may not
be decision-makers, they are the newest
401(k) participants. It's crucial to have
employee education and financial wellness
strategies in place to help them save and
prepare for retirement.
Communication with Your Clients
When communicating with clients, it's
essential to consider their communication
preferences. For example, if you're advising
a Baby Boomer plan sponsor, an in-person
meeting would be effective. During the meeting,
you can explain retirement plan updates
and answer any questions they may have.
On the other hand, Millennials or Gen
Z might prefer to use video conferencing
or email to discuss the 401(k) plan and its
findings. Using visual content such as plan
sponsor guides, checklists, reports and
graphics can make the information more
digestible.
Content Strategy
Effective content strategy depends on
understanding the target audience's preferences.
If you're targeting Boomers, focus on
print media such as physical newsletters,
brochures and other traditional marketing
materials. Gen Xers prefer email campaigns
with personalized messages and informative
content.
Creating conversational content that is
informative and engaging through social
media platforms such as LinkedIn can be
instrumental in reaching Millennials. Finally,
for Gen Z, visuals such as memes, short-form
videos and graphics that are easily shareable
and incorporate humor and relatable
content are more effective.
With this knowledge, tailor your communication
strategy to resonate with your
preferred cohorts. Investing in different business
development strategies can enhance
relationships, increase client engagement
and ensure your 401(k) business continues
to grow to its fullest potential.
Rebecca Hourihan is Chief Marketing Officer with
San Diego-based 401(k) Marketing, a modern
marketing agency for the retirement plan industry.
The company supports clients through custom
engagements, content marketing campaigns, sales
material innovations, thought-leadership consulting,
interactive workshops and speaking events.
ISSUE 2 2023 | 401kSpecialist.com
35
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401(k) Specialist Issue 2 - 2023

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