Compared to older investors, Generation X highly value access to online functions when it comes to their investments but it's not the most pressing priority.
Quality of service, which can include anything from accuracy of executions to quality of advice are just as important, according to The NeXt Generation of Millionaires, a Cogent Research report. The data showed that Gen Xers tend to be less satisfied with their primary investment provider if there isn't a wide selection of products and services to choose from.
The type of advice Gen Xers receive is especially important as they are just as attuned to their long-term portfolio performance as older investors, Cogent found. They are also concerned with the financial stability of their primary investment provider.
While offering online trading functions and website investment planning tools can help build loyalty, providers need to do a better job reassuring Gen X investors in a number of areas, the report revealed. Cogent suggested firms should ask what would be an ideal messaging strategy that addresses their concerns and skepticism.
Providers may also want to determine what is the right balance to strike between empowering individual investors to take a more active role in their investment planning and offering competitive levels of personal service that grow brand loyalty. By looking at what online firms are doing, investment providers might learn how to meet Gen X investors' appetite for security, stability and long-term performance, according to Cogent.