Marketing Forecast from Ad-ology

According to a new report by Cogent Research, less than half (42%) of advised affluent Gen X investors indicate they are satisfied with their primary financial advisor, a figure that is significantly lower than that of any other generation. In addition, roughly one-half (51%) indicate they are the on the fence or likely to switch primary financial advisors within the following 12 months, citing dissatisfaction with the advisor’s communication, investment performance, and ability to navigate and react to changing market conditions. “It’s time for advisors to capitalize on this growing, wealthy subset of the affluent community,” said David Feltman, Managing Director at Cogent Research, adding that “tailoring the approach will be key, with a focus on the products Gen X investors favor, the risk tolerance they are comfortable with, and the platforms they gravitate towards.”

One sign of the improving economy may be the revived consumer willingness to sign up for new credit cards. Over the past 12 months, nearly 20% of existing credit card consumers started shopping for a new card. comScore, which just released a new study on this topic, says the growth in demand for more credit cards will continue this year.

Consumers are changing the way they do their banking. In the past 5 years, more consumers have switched to their bank’s online capabilities to handle routine transactions. And the number of consumers accessing bank services via mobile phones is growing. However, consumers are not quite ready to give up their visits to traditional bank centers for important transactions. All of these changes in consumer behavior are leading banks to market themselves in new ways.

With the economy on the mend, many Americans are looking at the future with more optimism than they did prior to the recession. According to a new report by Mintel, more than eight in 10 high net worth households (defined as households with at least $500K in investable assets excluding real estate) say they are optimistic about their own financial situation over the next five years. Almost as many (76%) say they are optimistic for a shorter 12 month term, but a significant number remain pessimistic about 2011 (42%). Women respondents are much more pessimistic than men, with more than half of women (51%) saying they are pessimistic vs. 36% of males in high net worth households. Susan Menke, vice president and behavioral economist at Mintel Comperemedia, suggests that advisors focus on high net worth women, saying “the time is right to focus on adjustments to retirement portfolios for high net worth individuals, and women across all age groups would be an opportune place to start.”

With signs of an improving economy, many Americans are now keen to use their tax refunds to treat themselves or their families to a major purchase such as a new television or furniture. According to NRF’s 2011 Tax Returns Consumer Intentions and Actions Survey, conducted by BIGresearch, 13.2% of Americans will spend their refund on a big ticket item, up from 12.5% in 2010. While some will toss frugality out the window, there are still 41.9% of consumers who plan to pay down debt. Other ways consumers will use their refunds include vacation (11.9%), and everyday expenses (29.7%). “Many Americans have spent the last few years paying down debt with their tax refunds, but for some, it’s the perfect time to buy something nice for a change,” said Phil Rist, Executive Vice President, Strategic Initiatives, BIGresearch.

One sure sign of economic recovery is consumer willingness to use debt once again. Consumers started increasing their levels of debt as of last December. This new attitude means that credit card marketers are likely to boost their promotions in 2011.