Designing A Social Computing Strategy To Attract Gen YersCatherine GraeberVice PresidentForrester ResearchJune 23, 2008

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First, what does Forrester mean by Gen Y?

►Gen Y: Born between 1980 and 1990

►Gen X: Born between 1966 and 1979

►Younger Boomers: Born between 1956 and 1965

►Older Boomers: Born 1945 and 1955

►Seniors: Born 1944 and earlier

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Agenda

• What do we know about Gen Yers?

• Why should financial firms court this group?

• How can Social Computing strategies be used to attract new Gen Y customers?

• Questions

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What do we know about Gen Yers?

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Gen Yers: the Internet Generation

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“Do you do the following activities online at least monthly?”

Source: North American Technographics® Benchmark Survey, 2007

Base: US online consumers

Gen Y leads the way on Social Computing activities

0%

10%

20%

30%

40%

50%

60%

70%

80%

Gen Y Gen X YoungerBoomers

OlderBoomers

Senior

Use Web-based email

Use instantmessaging

Use socialnetworkingsites

Read blogs

Comment onblogs

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Why should financial firms court this group?

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The Gen Y segment is growing — and will represent 29% of online households by 2011

Base: US online households

15% 29%

30%23%

37%34%

18% 14%

2006 2011

Seniors

Boomers

Gen X

Gen Y

Source: North American Technographics® Benchmark Survey, 2008

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Gen Yers will drive future online banking growth . . .

Base: US online households that bank online

The number of US online households that bank online

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Seniors (born 1900 to 1945)

Boomers(born 1946 to 1963)

Gen Xers(born 1964 to 1975)

Gen Yers(born 1976 to 1990)

ForecastActual*

40M

20M

0

5 - Year Growth

Rate

+35%

+43%

-3%

60M

80M

136%

Source: *North American Technographics Benchmark Surveys 2001-2005; Forrester’s NACTAS 2006Benchmark Survey

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. . . And are the group most likely to apply online

Percentage of each generation who applied for a financial product* online

Gen Yers Gen Xers YoungerBoomers

OlderBoomers SeniorsGeneration

Base: US online households

10%

20%

30%

Source: North American Technographics® Benchmark Survey, 2007 *Financial product: annuities, auto insurance, auto loan, checking account, credit card, home equity loan,life insurance, mortgage

0%

24%

4%8%

10%

17%

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How can Social Computing strategies be used to attract new Gen Y customers?

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The Common Wealth Credit Union success story

• Tim McAlpine

»President and chief strategist, Currency Marketing

FORRESTER’S FINANCIAL FORUM | NEW YORK, NY | JUNE 23, 2008

SOCIAL COMPUTING

to attractGEN Y

Designing a

strategy

Tim McAlpine

President & Chief Strategist

Currency Marketing

INFOProject

E-mail from Eric Dillon:

“We would like to hear

how Currency can help

Common Wealth

own the youth market

in northern Alberta!”

4th-largest credit union in Alberta

52,000 members

$1.7 billion

16 branches across northern Alberta

Joining Servus Credit Union and

Community Savings Credit Union to

form Canada’s 3rd-largest CU

PERFECT SCENARIO

Relevant product

Differentiated brand

Real budget

Integrated marketing

Defined market

Social media & Web 2.0

Authentic voice

Senior-level involvement

Long-term commitment

Freedom & trustCourageous

credit union

Potential member in transition

YGEN

Distrust companies and media

KEY VALUES & CONCERNS

Very unlikely to sign-up for an

unknown company-sponsored

social network

SOCIAL MEDIA CONSUMPTION

They could care less about your

financial institution!

FEELINGS TOWARD FINANCIAL INSTITUTIONS

SOCIAL MEDIA

Belief in

CU

Social media and financial institutions can build community

And, social media can drive sales!

0

100

200

300

400

October November December January February March April May

2006–2007 2007–2008

Year-over-year youth member growth

Media support stopped here

THEMicrosite

Y&F on theSocial Web

Larissa’s year:getting started

CONNECTING ON-LINE

Happy New Year by Larissa

Story 1: The Difference

CONNECTING ON- AND OFF-LINE

The Difference Between Banks and Credit Unions Part 1 by Larissa

Larissa on Citytv Breakfast TV

Story 2: Movie Week

CONNECTING ON- AND OFF-LINE

Y&F Movie Week by Larissa

Y&F Movie Week by Larissa

Y&F Movie Week Contest Draw by Larissa

Y&F Movie Week by Larissa

RESULTSThe

39,082 unique visitors

120,852 page views

3:47 average visit

59,670 YouTube video views

630 blog comments

176 Facebook fans

62 Twitter followers

RESULTS

October 1, 2007 to May 31, 2008

$179,000 unpaid media coverage

2,000,000+ impressions

2,010 Y&F accounts

$2,875,000 funds in Y&F accounts

RESULTS

October 1, 2007 to May 31, 2008

currencymarketing.ca/blog

currencymarketing.ca/podcast

Thank

YOU!

Tim McAlpinetmcalpine@currencymarketing.ca

currencymarketing.ca

Entire contents © 2008 Forrester Research, Inc. All rights reserved.

Catherine Graeber

+1 831.622.9392

cgraeber@forrester.com

www.forrester.com

Thank you