Post on 18-Jan-2015
description
UNDERSTANDING MILLENNIALS TO INCREASE YOUR CUSTOMER BASE, SALES AND
REVENUE BY DR. NATALIE L. PETOUHOFF @DRNATALIE
FINANCIAL SERVICES:
MILLENNIALS: DON’T MISUNDERSTAND WHO THEY ARE AS A TARGET MARKET
MILLENNIALS: HOW THEY… • Connect to brands • Shape their opinions about products & companies • Use technology to build their networks & share
information • Make purchasing decisions • Are influenced and influence others
JUST THE FACTS
Sources: *CIA World Factbook **Javelin Strategy & Research Study ***IRI study
• Millennials are the largest, most diverse, educated & influential shoppers on the planet • Positioned to be the wealthiest generation to date • >1.7 billion people on earth are 15 -30 yrs of age* • By 2015 in the US, annual spending >2.45Trillion/yr** • By 2018 in US, projected income will be $3.4 Trillion/yr –
Surpassing Baby Boomer income** • Millennial women represent a $54B marketing opportunity,
surpassing baby-boomers in consumer package goods spending***
• Have influence over their Baby Boomer parent’s choices & will inherent that money
• From adolescence to adulthood • From high school to college or workforce • From single to married to parents or just single • The avg. age of a new mom is 25
MILLENNIALS: RANGE OF LIFE STAGES & MILESTONES
MILLENNIALS: MANY LIFE-DEFINING EVENTS
• 2004 Southeast Asian Tsunami • Hurricane Katrina • 2008 Sichuan (China) Earthquake • 9/11 • The Great Recession- Banks,
Insurance And Real Estate • The Facebook Revolution
I’ve seen a lot
in my short life
BRANDS: A FORM OF SELF-EXPRESSION
• Strong sense of brand awareness • More the brand fits into their lifestyle, the more
inclined to personally identify with brand • 86% share their brand preferences online with their
social networks
• Strong sense of brand loyalty • When they find a brand they like, 70% keep coming
back • After a bad experience? Extremely difficult to win
them back *Edelman The 8095 Exchange Study
Conclusion: Does your customer experience brand drive loyalty?
EXPRESSING SUPPORT FOR A BRAND IS A PERSONAL STATEMENT
The Brand’s • Authenticity • Integrity • Ability to deliver
What matters most to Millennials?
QUESTION: What’s being said about your company online?
• It’s deeper than for other demographics, because the online expression of support for a brand is a permanent, personal reflection of Millennials’ values
• It comes down to trust • Access to online information increases/decrease that trust • Prefer to do their own research online vs. read/believe a
brochure from a company • THIS IS WHY SOCIAL MEDIA MATTERS TO BUSINESS
MILLENNIALS: THEY SPEAK THEIR MIND ONLINE
• A company’s reputation can matter as much as the performance of its products* • 34% bought from a brand
because of the social or political values of the company
• 90% tell their family & friends NOT to purchase the company’s products when they lose trust or respect for a brand
*Source: Pew Research survey
MILLENNIALS: WHY THEY PURCHASE • 55% said price was most
important reason • But price is the least important
in building their trust* • 30% cared more about product
quality • 20% cared more about the
range of products offered
Source: *Pew Research Survey **Deloitte Banking Study
• 33% looked for brands who made a positive impact on the world • Civically minded, propensity to combine
belief with action • 80% donate time to non-profit causes;
believe companies should implement employee volunteer programs
• Look for brand’s social & environmental commitment when deciding where to shop & recommend its offerings
• More likely to switch banks based on their charitable investments**
QUESTION: Does your brand elicit trust?
MILLENNIALS: WHO THEY
TRUST
• Family- 2x more likely than any other generation to use family counsel as the most influential factor in making choices around money
• Friends • Bloggers that document their personal experiences with products • Consumers who write real reviews • Why? They have personal experience with the products or brands
QUESTION: Are you asking your customers for recommendations?
http://itsmyturntocook.files.wordpress.com/2009/12/claire-serving-cottage-pie-to-the-family.jpg
MILLENNIALS: SOCIAL NETWORKS & TECHNOLOGY ARE THEIR LIFE* • 75% created a profile on a social networking site • 55% visit those sites once/day • 60% connect to the Internet wirelessly when they
are away from work or home • 88% text each other • 74% new technology makes their life easier • 50% use it to be closer to their friends • 65% are disconnected one hour or less a day
*Pew Research survey
QUESTION: Are you monitoring what is being said about your company?
*Edelman The 8095 Exchange Study
MILLENNIALS: TAKING ACTION IS A CORE VALUE*
• 70% recommend their favorite brands to family and friends
• 47% write about good online experience • 40% have criticized a brand on a social
network • 70% would create a video and post it
online or write a review about their experience with a company
• 20% have posted a video about themselves on line
Question: Does your brand inspire action in social media?
*Edelman The 8095 Exchange Study
MILLENNIALS: THEY SHARE THE GOOD & THE BAD
• They text 5 friends and share their frustration on Facebook
• The friends share the story with their peer groups
• Friends comment on the incident and share their own stories of disappointment
• A single event spreads like wildfire
When dealing with a customer service issue, <10% would call customer service.
If a Millennial has a problem with a company, instead of calling customer service:
Source: http://www.sodahead.com
Question: What is your customer experience like?
MILLENNIALS: WORD-OF-MOUTH IS A MAINSTAY
“Focus on making an excellent product. If you do, then all of your marketing will be true and most of the marketing will be done by us. We are all looking for great products and brands to share with our friends. The best way to help us spread the word is by first creating a great product.”
I want to trust you
*Edelman The 8095 Exchange Study
BANKS & MILLENNIALS
BANKS: 2011 GLOBAL BANKING SURVEY: A NEW ERA OF CUSTOMER EXPECTATION
Source: Ernst & Young Study of 20,500 participants
BANKS: HOW DO THEY STACK UP MILLENNIALS?
• 30% have 20-40% Millennials as customers
• 31% have a Millennial Strategy
• 37% had no Social Media Strategy
• 63% said they planned to do something with Social Media
*Source: Oracle Financial Services Study
MILLENNIALS: THEIR VIEWS ON MONEY • Millennials generally:
• Love to spend • Don’t have long-term
investment plans • Most popular banking products
are credit, debt cards, loans (school and mortgage)
• Want assistance to manage their money
• Recommend their banks to family & friends
• Mobile banking is a preferred banking channel
*Source: Oracle Financial Services Study
Because Baby Boomers are drawing from their savings, to generate revenue Banks need to reach out to Millennials
• Millennials don’t have to rely on product marketing information
• They can tap the whole world of data to make purchase decisions
BANKS NEED A NEW WAY TO APPEAL TO CUSTOMERS
Banks need to: • Relocate product marketing
budgets • Find different ways to
communicate with Millennials, directly and indirectly through their social networks, colleagues and influencers…
The old playbook is out
MILLENNIALS: WANT HELP TO REACH THEIR PERSONAL GOALS
• They pay attention to brands that impact their goals • Affording house, buying a car, raising children, going to school…
Source: Deloitte Study
• Are financially guarded; generally have conservative asset plan allocation
May be due to: • Life-defining events they have witnessed • Have more access to financial information
than predecessors at similar life stages • Don’t feel they have enough financial
education to manage their investments • Bank’s products & services seem complex
Question: How do your services help Millennials reach their goals?
RECOMMENDATIONS Step 1: Accept the Millennial Generation
Don’t say, “In a few years they will be like us…” Millennials are… • On the leading edge of trends that they & older generations follow
• Online banking
• Resistance to traditional marketing
• Concern for the environment
Strategies that effectively meet the needs of Millennials provide benefits for other demographics & generations
*Source: Deloitte Financial Services Study
MILLENNIALS: DO U UNDERSTAND THEM?
*Source: www.transl8it.com
MILLENNIALS: DO U UNDERSTAND THEM?
*Source: www.transl8it.com
RECOMMENDATIONS Step 2: Customer Experience Channels– Integrate Them Well • Conduct customer experience – day in the life of –
studies of your channels • The trend is to move from just branches: offer: the
branch store, the online store, mobile store, face-to-face & social networking store
• Combine store experiences in the same transaction: research in one place, educate themselves in another, purchase in another…
• Make it easy to navigate / switch channels • Provide a consistent customer experience across
all channels
*Source: Deloitte Financial Services Study
EXAMPLE: ING DIRECT
• Focused on networking and learning • Branches became a social networking venue where friends & family
gather, even if they aren’t make a financial transaction • Once Millennials developed a relationship with the bank, they were
more likely to do banking there
Created Drop-in Café’s in LA, NYC, Philly, Wilmington
EXAMPLE: CAPITAL ONE
• Opened a branch in Manhattan • Shares the space with
Starbucks • Convert loose change in the
bank’s bean counter machine to get a coffee
• Coffee drinkers can enjoy Starbucks, watch the news on TV and go do a financial transaction with a Capital One Advisor
• A bank becomes a place to linger, talk, socialize and bank
RECOMMENDATIONS
Step 3: Marketing As Education vs. Telling • Millennials lived in an information-intensive, connected world • Move from product marketing relationship marketing • Provide practical information to build relationships • They are skeptical of traditional advertising; rely more on the
advice of friends and family • Create blogger outreach programs to influential Millennials
• Always better to have the voice of the customer provide testimonials for this group
*Source: Deloitte Financial Services Study
http://www.helpfulstrangers.com
EXAMPLE: ROYAL BANK OF CANADA • Created a contest with User-
Generated Content • Grand prize: $5,000 for best picture • How $1,000 would improve student life • Go to RBC’s Facebook Fanpage • Download and print an Arbie template • Find photo opportunities to show Arbie
how $1,000 would improve their student life • Learning to surf • Travelling to Europe • Buying a 30” computer monitor
• Upload the pictures and vote!
EXAMPLE: ROYAL BANK OF CANADA
Leverages social media • Community Manager • RBC Advice Center on
Facebook • iPad Educational App • Mobile App Information • Daily Advice Game…
EXAMPLE: ROYAL BANK OF CANADA
Leverages social media with an RBC Advice Center on Facebook
RECOMMENDATIONS Step 4: Make Products Simple • Millennials prefer simple, practical, affordable banking services • Show you understand they are just starting their financial lives • Use social interactions to draw attention to products • Appeal to doing good things; make dreams come true!
*Source: Deloitte Financial Services Study
EXAMPLE: ROYAL BANK OF CANADA Education about the Mobile application on Facebook page
EXAMPLE: ROYAL BANK OF CANADA Information about Learning Money app for iPad on Facebook page
EXAMPLE: ROYAL BANK OF CANADA • Sponsored Filmmakers Competition • Help make dreams come true
EXAMPLE: SUN TRUST • Campaign: Seeing Beyond The Money • Actively support organizations and activities that
share our commitment to enriching and strengthening the communities in which we live.
EXAMPLE: WACHOVIA • Central Piedmont Community College (CPCC)
received a $250,000 grant • Provide retraining and counseling for displaced
professional and paraprofessional workers.
Do something good
Advocacy
CREATE A BRAND TO LOVE
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BRAND LOCATION
CUSTOMER
START A CONVERSATION
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Invitations designed to suit your brand
Industry leading incentive plan to drive response count
Multi-mode feedback collection to listen to your customers
CHANGE EMPLOYEE BEHAVIOR Commit to action Focus on what’s most important to customers Deliver great experiences Improve overall satisfaction score up to 5x more than traditional CEM
40
SUSTAIN THE GREAT EXPERIENCES Leverage the power of your internal community Build best practices through social sharing Continually improve the experience +8% focus area improvements
41
FOCUS CYCLE FOR ONGOING IMPROVEMENT Eliminate the need for complex reports Focus locations on what is most important for their guests Help location managers know what to fix and how to execute
42
Select
Commit
Act
Measure
Review
Share
Find Satisfied Customers Convert Customers to Advocates
GIVE CUSTOMERS A VOICE TO RECOMMEND
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Amplify the Voice of Your Advocates
Customers with high are invited to make a recommendation
Customer makes a personalized recommendation
Recommendation is shared via Facebook, Twitter and email with all of the advocates’ friends
Facebook Post
Customer completes survey
Twitter Post
Email Post
A SIMPLE PROCESS TO DRIVE ADVOCACY
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Facebook Post
Twitter Post
Email Post
THE IMPACT OF ADVOCACY
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Positive experiences shared with over
110,000,000+ Friends and Followers
100+ Brands
Over 1,000,000
advocates found
20% accept invitation
WORD OF MOUTH ENDORSEMENT ON SOCIAL MEDIA
Primary marketing message
Personalized message from advocate
Secondary marketing message
Advocacy
EMPATHICA SOCIAL CUSTOMER EXPERIENCE MANAGEMENT
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BRAND LOCATION
CUSTOMER
Resources and information on social media strategy & other topics…
Social media ROI
Dr. Natalie Petouhoff @DrNatalie +DrNatalie
DoctorNatalie@gmail.com www.DrNatalieNews.com
Videos: Books and Whitepapers:
Scan this QR Code for a chapter of Dr.
Natalie’s book: Like My Stuff- How To Monetize Facebook
with a Facebook Store 48
How To Build a Business Case for Social Media
http://www.youtube.com/watch?v=_59iJrYanw0&feature=relmfu
How Social Media Benefits the Whole Company
http://www.youtube.com/watch?v=e1SfQaMSbH0&feature=relmfu
How To Calculate the ROI of Social Media
http://www.youtube.com/watch?v=UhUO30VRN1M&feature=relmfu