Research: NextGen or LostGen? — The need to develop new client acquisition strategies

What is involved and what is needed for targeting and acquiring different types of new customers, including so-called NextGen customers, for financial advice firms, providers and the financial services industry more broadly? At a high level, that’s what this AKG research paper is seeking to address.

For many in financial advice, there has been a tendency for a strong focus on retention and the development of existing client relationships. Indeed, some firms are comfortable maintaining this focus, remaining profitable and leaving the challenges of new client acquisition to others.

However, for advice firms planning strategies beyond the short-term, there is undoubtedly a requirement to consider new business growth outside of the existing client pool and hence appraise NextGen and/or broader recent client acquisition approaches. Again, something that this paper shines a light on.

In keeping with AKG’s approach to such industry research projects, this paper is informed by three separate but complementary market research exercises – one with consumers and two with advisers – and associated insight and findings are discussed throughout.