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Banking on Millennials3 STRATEGIES TO CAPTURE & RETAIN THE MOST TALKED ABOUT GENERATION
With 80 million members, millennials are the largest generation in the history of the United States. Referred to as risk-taking, passionate, tech-savvy, and worldly, their lifestyle and preferences represent a dramatic shift from any US generation before them.
Much as the baby boomers radically changed the financial market thirty years ago, this surge of millennials offers a huge opportunity for financial services firms.
According to Financial Brand
Millennials switch banks twice as often as other customers.
Time to Get Personal
Are you up for a challenge?
Throughout this guide, you’ll find personalization as a common theme. Millennials have grown up in the world of Amazon, Facebook, and a number of digital channels that deliver personalized experiences. Millennials have come to expect a friction-free experience across every digital platform—not just retail and social media giants. The financial brands that master personalization will win any millennial’s heart.
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4 BANKING ON MILLENNIALS: 3 STRATEGIES TO CAPTURE & RETAIN THE MOST TALKED ABOUT GENERATION
Financial marketers like you must understand how to market and serve this unique
demographic in order to grow and maintain a successful business.
But exactly who is a millennial?
Millennials are the generation shaped by technology, who value
community, meaningful work, and freedom of choice. These digital
natives are politically independent, burdened by debt, and in no
hurry to settle down.
WHO ARE MILLENNIALS?1980-2000Born between
25%Makeup
of the US population
69% crave adventure
75%would travel abroad
61%have attended college
50%of millennials are more
willing to make a purchase from a company if their
purchase supports a cause
44%are part of a
minority race or ethnic group
2.5xmore likely to be an early
adopter of technology
Sources: Millennial Marketing
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5 BANKING ON MILLENNIALS: 3 STRATEGIES TO CAPTURE & RETAIN THE MOST TALKED ABOUT GENERATION
Are you struggling to connect with millennials? Start reevaluating the way you market to this unique demographic with three strategies. In our guide you will learn the challenges financial institutions face, the makeup of a millennial, and useful tactics to improve customer loyalty and retention.
The New Strategy
Loyalty Programs Digital Channels Financial AdviceKill two birds with one stone: Reward your
customers and increase brand loyalty.
Linked to the digital world, millennials are
always running to the next best thing. Make
sure you stay ahead of the digital curve.
Tech savvy but asset poor? Give millennials
the advice they’re searching for.
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6 BANKING ON MILLENNIALS: 3 STRATEGIES TO CAPTURE & RETAIN THE MOST TALKED ABOUT GENERATION
Loyalty ProgramsPrograms that offer rewards are more appealing to millennials than
to older audiences. In fact, 68% of millennials wouldn’t be loyal to
a brand without a strong loyalty program. Loyalty programs make
millennials feel as if they are part of a special club or experience.
WHAT IS A LOYALTY PROGRAM?
Loyalty programs are memberships offered by financial services
firms in exchange for customer information. As customers use their
issuer’s membership card (in this case a debit or credit card), they
are rewarded in return. Although customers are spending money on
annual fees, they are willing to pay a little to get greater rewards in
return.
THE BENEFITS OF A LOYALTY PROGRAM
Millennials aren’t the only ones who reap the benefits of loyalty
programs. With millennials willing to pay an extra fee to receive
benefits, this allows you to engage with your customers on an individual
level and passively encourage their spending.
Reward programs make it easier for financial firms to:1. Retain existing customers
2. Deepen personal relationships
3. Increase customer lifetime value
4. Create brand advocates
5. Gain a wealth of consumer information
6. Target advertising on an individual level
Sources: Access Development
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7 BANKING ON MILLENNIALS: 3 STRATEGIES TO CAPTURE & RETAIN THE MOST TALKED ABOUT GENERATION
Digital ChannelsIt’s no secret that millennials crave on-demand service. On average,
millennials spend 35 hours a week online engaging with friends,
family, and brands across a myriad of digital channels.
Financial marketers would be foolish to ignore millennials’ constant
connection to their smartphones, laptops, or tablets. Banks should
adapt and engage with millennials where they exist. Opportunities
exist for innovative technologies and creative strategies to connect
with consumers and help them manage their financial life, make
deposits, ask questions, and more.
COMMUNICATION
Currently, 43% of millennials don’t receive communication via their
preferred channel. Rather than treating all millennials alike, Capture
the heart of each customer by determining individual contact
preferences.
Each consumer requires unique channels through which to contact
them depending on the subject matter (product notifications, alerts,
statement availability, etc.). Take note of this early on, and use this
method of contact continuously. Personalize your communication to
increase engagement and improve the customer experience.
The most preferred channels of communication are:
Sources: Money Summit, The Financial Brand
SPECIAL NOTE ON MOBILE APPS
In banking, branded apps are a must! Millennials seek
mobile apps for the convenience, always-on support, and
ease-of-use of new payment solutions.
If you’re considering a mobile app, think about including the following feature:
1. Person-to-Person Transfers
2. ATM/Branch Locator
3. Mobile Deposits
EMAIL TEXT BANK WEBSITE MOBILE APP
TRANSFER
FIND A BRANCH
DEPOSIT
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8 BANKING ON MILLENNIALS: 3 STRATEGIES TO CAPTURE & RETAIN THE MOST TALKED ABOUT GENERATION
Financial AdviceLike their parents before them, millennials need a little help when
it comes to managing their everyday life. As a matter of fact, 39%
of millennials admit to worrying about their financial future at
least once a week or more. Now is your opportunity to shine as a
lighthouse of financial advice and to give your customers peace of
mind.
SLOW YOUR ROLE
Hold off on talking about financial goals that are 30 years down the
road. Millennials want to live in the present. Address more here-and-
now concerns such as bills, student loans, and credit card debt.
Millennials will appreciate the instant gratification of having these
concerns under control. After you offer guidance on budgeting,
debt management, and saving for marriage or a first home, then you
can move on to retirement talk.
Don’t be solely thought of as a transactional service company. Offer valuable content that is more relevant to their everyday lives.
According to an Accenture study, consumers said they would be interested in the following advice:
Sources: Campaign, Accenture
52%
49%
46%
PRODUCT & SERVICES RECOMMENDATIONS
END-TO-END ASSISTANCE WITH CAR BUYING (I.E. HELP WITH NEGOTIATING A LOAN,
VEHICLE RECOMMENDA-TIONS, ETC.)
BUYING A HOME
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9 BANKING ON MILLENNIALS: 3 STRATEGIES TO CAPTURE & RETAIN THE MOST TALKED ABOUT GENERATION
Financial AdviceCUSTOMER-CENTRIC MINDSET
Custom products are important to members of this diverse
generation. Millennials want to be recognized as individuals and
want products that are specifically designed to meet their financial
needs and goals.
Similar to how Nike.com allows customers to design their own
custom shoes, the financial industry has a unique opportunity to create customized financial products that caters to millennials’ individual saving or investing needs.
Break away from traditional banking products and understand your
customers’ challenges. Uncovering their needs, motivations, and
behaviors will help your product marketing strategy exponentially.
Sources: Nike
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10 BANKING ON MILLENNIALS: 3 STRATEGIES TO CAPTURE & RETAIN THE MOST TALKED ABOUT GENERATION
As your customer base changes, your strategy must go with it. Millennials are a different
animal than any generation before. Address their needs through your digital strategy, and
make it the beginning of a long and healthy banking relationship.
TIME TO MAKE CHANGES
Want to discuss your current digital strategy and ways to
improve it? Contact [email protected] or (617) 241-7977
About the Author
Melissa Wiltse, Marketing Coordinator at Boston Interactive, is
responsible for the alignment of sales and marketing, content
production, and project management at Boston Interactive. Melissa
stays on top of the latest financial services trends and industry
standards. When she’s not writing blogs, white papers, or articles,
you can find her on the bocce courts, daydreaming about traveling,
or nose-deep in a good book.
MELISSA WILTSE
FIND MELISSA ON LINKEDIN
https://www.linkedin.com/in/melissawiltse
529 Main Street, Suite 212 | Charlestown, MA 02129 | BostonInteractive.com
About Boston InteractiveBoston Interactive is a digital marketing agency that combines custom online strategies with
emerging technologies. Boston Interactive has had success with many financial clients by helping
to increase wallet share, diversify membership bases, and promote a wide range of financial
products and services. Through web, mobile, social, SEO, and paid search campaigns we are the
partner of choice to deliver measurable user experiences and to increase lead generation.
SOME OF OUR BANKING CLIENTS