Empathica millienial presentation @dr natalie.pptx

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?


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


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

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


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


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!


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

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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

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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

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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

[email protected] 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

Empathica millienial presentation @dr natalie.pptx

Business

Transcript of Empathica millienial presentation @dr natalie.pptx