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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 info@bostondigital.com or (617) 241-7977

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