What Cyber Monday Told Financial Advisors
This Cyber Monday was one for the record books, but that might not be a good thing. US consumers spent a record $12.4B on the heels of frustrations over inflation and tightening budgets. Surprising, but, then again – maybe not.
Maybe more significantly, consumers spent $940M on “Buy Now, Pay Later” purchases. That’s a 42.5% from last year. That’s not a reflection of people having more resources. It’s a symptom of our appetite outpacing our budgets.
While I don’t think that the American consumer gets an A+ last weekend, it presents a huge opportunity for advisors. If you’re well positioned, financial discomfort is going to be at record highs as well – in January.
Webinar: Advisor Marketing & the Holiday Gauntlet
Delayed Gratification vs. Delayed Consequence
I'm just at the point now where if I do a 5K or a Tough Mudder, I feel great. I have adrenaline in the moment. But 48 hours later, it is rigor mortis and regrets. I’m uncomfortably reminded that I'm not as young as I used to be.
This is what we see happening in the average American family. This whole year has been a chorus of discomfort due to inflation and tightening budgets. Upon reaching the holidays, we are spending more than would be reasonable in any month – except for November and December.
Now, we'll push through and keep spending as we ride the highs of Christmas cheer (and a saturated advertising culture). Will we feel stress? Sure. But we’ll keep spending because it’s the holidays.
Give it till January when the credit card bills come due. Pair that with a dose of New Year’s resolutions and you have a unique blend that shows up on rare occasions.
Financial discomfort paired with heightened motivation.
I think a lot of families are going to be revisiting their relationship with money and realizing the importance of “managing their money instead of having money manage them.” (Quote by Compass Ion Advisors)
What This Means for Advisors?
For the advisors who are well positioned to showcase a healthy relationship with money, I think that there is going to be a huge opportunity for your marketing. Ready for a key secret for growing your business?
Most advisors focus on things that are far off when it comes to marketing – retirement, wills + estates, insurance, etc. I’d also guess that you are well aware of this truth as an advisor: it can be hard to talk someone into caring as much as they should about things that are far away.
That’s why we need to be mindful of the things your prospects and clients are focused on NOW. The holidays are one of the most stressful times for families financially because of dynamics like these. Advisors are perfectly positioned to help alleviate pain in the here and now, but it requires intentionality.
Help them where they are and provide immediate impact. That’s how you build relationships and trust that lead to lifelong partnerships. Don’t miss your window this winter.
We recently sat down with Derek Pollard of Constellar Creative to discuss how advisors can positively impact their clients during the holidays – and grow their business as a result.
