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Seniors and Boomers banking segmentation strategy
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HARRINGTON
REGIONAL BANK CONSUMER SEGMENTATION STRATEGY
BRIAN S. HARRINGTON
425.503.0586
HARRINGTON
OBJECTIVES
Phase I – Consumer Generational Deep Dive
Regional Bank has defined their retail banking consumer target as age 55+– This large group consists of 3 generations with remarkably different attitudes & behaviors– Seniors are G.I. and Silent Generations
Goal of presentation is to develop key insights on this target by each generation to proceed to Phase II
HARRINGTON
EXECUTIVE SU
MM
ARY
Key Generational Statements– G.I. generation is known for having had it all and then lost it– Silent generation is known for starting with nothing and then gaining it all– Boomers generation is known for being rebellious and selfish
Key Generational Facts– G.I.
≈ The most fascinating generation on the planet. Their Depression was The Great One; their War was The Big One; their prosperity was the legendary Happy Days. They saved the world and then built a nation. They are the assertive and energetic do’ers. Excellent team players. Community-minded
– Silent ≈ Our country’s Last Innocent Generation. Went through their formative years during an era of suffocating
conformity, but also during the post-war Happy Days. The richest, most free-spending retirees in history. Under-appreciated and often overlooked
– Boomers ≈ The save-the-world revolutionaries of the ‘60s and ‘70s who provided the passion and masses to the
dizzying cultural revolutions of the Consciousness Movement; and, they are also they party-hardy career climbers of the ‘70s/’80s. Their aging will change America almost incomprehensibly. The American Youth Culture that began with them is now ENDING with them. Their activism is beginning to re-emerge
HARRINGTON
MED
IA BEH
AVIO
R
Source: Forrester’s NACTAS 2006 Benchmark Study
Boomers and Seniors are the most annoyed by the amount of advertising today
Boomers and Seniors are the most active newspaper readers and TV viewers
Seniors and Boomers do not use the internet
HARRINGTON
SOCIA
L TYPES
Born/Youth: 0-21, Rising Adulthood: 22-43, Midlife: 44-65, Elderhood: 66-87
Civic– They are heroic, collegial, and rationalistic. Core values include community,
technology, affluence. A typical weakness (as least as perceived by others) might be insensitivity (rationalism taken to excess)
Adaptive– They are conformist, sensitive, and cultured. Core values include pluralism,
expertise, and social justice. A typical weakness (as least as perceived by others) might be superficiality (adaptability taken to excess)
Idealist– They are visionary, individualistic, and spiritual. Core values include principle,
religion, education. A typical weakness (as least as perceived by others) might be dogmatism (principles taken to excess)
Reactive– They are rebellious, pragmatic, and materialistic. Core values include liberty,
practicality, survival. A typical weakness (as least as perceived by others) might be amoralism (pragmatism taken to excess)
Civic Adaptive Idealist ReactiveG.I. & Millennials Silent & Homeland Boomers Lost & Gen X
Unraveling Youth Elderhood Midlife Rising Adulthood
Crisis Rising Adulthood Youth Elderhood Midlife
High Midlife Rising Adulthood Youth Elderhood
Awakening Elderhood Midlife Rising Adulthood Youth
HARRINGTON
SOCIA
L MO
VEMEN
TS
Inner-Driven Era Crisis Era Outer-Driven Era Awakening Era Inner-Driven Era Crisis Era Outer-Driven Era1901-1924 1925-1942 1943-1960 1961-1980 1981-2002 2002-2025 2026-2051
Coming of Age Reactive (Lost) Civic (G.I.) Adaptive (Silent) Idealist (Boomer) Reactive (Gen X) Civic (Millennial) Adaptive (Homeland)
Definition Individualism flourishes, new ideals are cultivated in separate camps, confidence in institutions declines and secular problems are deferred
Opens with growing collective unity in the face of perceived social peril and culminates in a secular crisis in which danger is overcome and one set of new ideals triumphs
Society turns toward conformity and stability, triumphant ideals are secularized and spiritual discontent is deferred
Triggers cultural creativity and the emergence of new ideals, as institutions built around old values are challenged by the emergence of a spiritual awakening
Individualism flourishes, new ideals are cultivated in separate camps, confidence in institutions declines and secular problems are deferred
Opens with growing collective unity in the face of perceived social peril and culminates in a secular crisis in which danger is overcome and one set of new ideals triumphs
Society turns toward conformity and stability, triumphant ideals are secularized and spiritual discontent is deferred
A social movement is when people perceive an historic event that radically alters their social environment
– There are two types of social movements (they never appear next to each other)≈ Secular Crises: when society focuses on reordering the outer world of institutions and
public behavior≈ Spiritual Awakenings: when society focuses on changing the inner world of values and
private behavior
Over the next 19 years, we will be going through a Crisis Era, which was started by 9/11. The next era will start in 2026 at which time it will become a more stable time
HARRINGTON
G.I. G
ENERA
TION
S (1901-1924…84-107 yrs/old)
Type: Civic– Collective Lifecycle: 1901-2004 (last cohort turns 80)
Total Born: 63MM– Alive now: 6.9MM (11.1%) based on 2002 U.S. Census Data– Immigrants: 5.7MM (9%)
Prominent Members– Walt Disney, Walter Cronkite, Ronald Reagan, John Wayne
Historical Events– Boy & Girl Scouts founded, Charles Lindbergh transatlantic flight, WWI, Great Depression, FDR New Deal, Women’s
Voting Rights, Prohibition– War: World War I & World War II
Technology Inception…Radio
Movie…The Gold Rush, Gone with the Wind, The Jazz Singer
Music…Jazz/Blues/Ballads…Irving Berlin, Ziegfeld Follies, George Gershwin
Motto…Power
Positive Attributes…Rational, Selfless, Competent
Negative Attributes…Overbold, Unreflective, Insensitive
HARRINGTON
G.I. G
ENERA
TION
S A “good kid” reputation as they were the beneficiaries of new playgrounds, vitamins and
child-labor restrictions
As young adults, they patiently endured depression and heroically conquered foreign enemies
In a midlife, being subsidized by the G.I. Bill, they built gleaming suburbs, invented miracle vaccines and launched moon rockets
GI's were the first group to call themselves "senior citizens"
Formality - wear suits and ties everywhere
Uniformity - it is good and normal for everyone to agree, work the same and look the same
Cooperative - put trust in government, authority and community
HARRINGTON
SILENT G
ENERA
TION
S (1925-1942…66-83 yrs/old)
Type: Adaptive– Collective Lifecycle: 1925-2022 (last cohort turns 80)
Total Born: 49MM– Alive now: 30.1MM (61.5%) based on 2002 U.S. Census– Immigrants: 4.4MM (9%)
Prominent Members– Martin Luther King, Jr., Neil Armstrong, Woody Allen
Historical Events– Great Depression, McCarthyism, Peace Corps founded, A-Bomb, Stock Market Crash– War: World War II & Korea War
Technology Inception…Black & White Television
Movie…Singing in the Rain, On the Waterfront, It’s A Wonderful Life
Music…Swing/Jazz Bop/early Rock n’ Roll…Glenn Miller, Count Bassie, Miles Davies, Bill Haley, Chuck Berry
Motto…Love
Positive Attributes…Caring, Open-minded, Expert
Negative Attributes…Indecisive, Guilt-Riden, Neurotic
HARRINGTON
SILENT G
ENERA
TION
S (1925-1942…66-83 yrs/old)
Grew up as the suffocated children of war and depression
They came of age just too late to be war heroes and just too early to be youthful free spirits
They generally have been found to be ambitious, often seeking achievement, power and status
Economic losses that effected a family status left children with an ambitious desire to overcome such losses, leading to a generation of aspirations, goals and purpose
HARRINGTON
BOO
MER G
ENERA
TION
S (1943-1960…48-65 yrs/old)
Type: Idealist– Collective Lifecycle: 1943-2040 (last cohort turns 80)
Total Born: 79MM– Alive now: 55.5MM (70.3%) based on 2002 U.S. Census– Immigrants: 7.9MM (10%)
Prominent Members– Steven Spielberg, Steven Jobs, Donald Trump, Bill Clinton, Oprah Winfrey
Historical Events– Watergate, Vietnam, TV generations, Moon Landing, Sputnik, Polio Vaccine discovered, Assassinations of JFK &
MLK, Woodstock, Civil Rights, Bay of Bigs/Castro came to power, Disneyland opened– War: Korea War & Vietnam
Technology Inception…Color Television
Movie…The Graduate, Psycho, Easy Rider, The Sound of Music
Music…Rock…Jimi Hendrix, The Who, Led Zeppelin, Elvis Presley
Motto…Truth
Positive Attributes…Principled, Resolute, Creative
Negative Attributes…Ruthless, Selfish. Arrogant
HARRINGTON
BOO
MER G
ENERA
TION
S (1943-1960…48-65 yrs/old)
Self-focused, spoiled, self-absorbed and they value individuality and experience
Boomers are more focused on emotions and feelings than generations before them
Boomers dislikes being called “Seniors”, despite the invitations to join the AARP that are arriving in the mail
Only in adulthood have Boomers valued income and family
In their youth, they were more free-spirited
HARRINGTON
BAN
KING
- BEHA
VIOR
Seniors are more comfortable dealing with people when they bank
Seniors considers the bank as an advocate
Seniors don’t bother with mail-in rebates/coupons
Boomers like to shop around before making a decision
Boomers are not brand loyal or price sensitive
Seniors & Boomers use their family/friends, as well as bank branches for sources of influence rather than call centers and websites
HARRINGTON
BAN
KING
- SENIO
RS Very low median level of income ($48,131)
Online financial activity – Extremely Low– Banking online (13%)– Buying investments online (4%)– Researching financial products online (6%)– Applying for financial products online (3%)
One in Seven have a CD
Less than 15% have HELOC/Home Loan
HARRINGTON
BAN
KING
- BOO
MERS
Highest median level of income ($67,688)
Online financial activity - Low– Banking online (31%)– Buying investments online (7%)– Researching financial products online (19%)– Applying for financial products online (9%)
One in Eight have a CD
26% have HELOC/Home Loan
HARRINGTON
BAN
KING
- LOYA
LTY
Source: Forrester’s NACTAS 2006 Benchmark Study
2/3 of Seniors are defecting to competitors
HARRINGTON
BAN
KING
- CROSS-SELLIN
G
Source: Forrester’s NACTAS 2006 Benchmark Study
1/4 of Boomers are open to cross-shopping
HARRINGTON
MA
RKETING
- SENIO
RS (G.I. &
SILENT)
The only two living generations whose core values and beliefs are similar enough that they are usually considered a single market - Matures/Seniors
More spending power than prior generations that have occupied their current age bracket (Social Security)
They spend more and very receptive to trying new products and services
They’re more willing to switch brands
Seniors have time to read a longer message (i.e. Direct Mail)
Connect with grandchildren, patriotism, community
Seniors and Boomers are receptive to trying new brands and products
HARRINGTON
MA
RKETING
- BOO
MERS
Receiving the largest transfer of wealth in human history
Have also been very successful – Disproportionate wealth
They’re squeezed - both in time and money (seniors/children)
Receptive to changing brands and trying new products and services
Not brand loyal!
Boomers are skeptical, opinionated and selfish
They like results… not promises
HARRINGTON
RECOM
MEN
DA
TION
S Phase 2 – Primary research with existing & potential consumers from all three generations
– Re-evaluate bank branches, call centers and websites– Create awareness and positive opinion to engage and inspire acquisitions – Establishing a loyalty program – Developing better cross-shopping opportunities
Phase 3 – Develop Consumer Segmentation Strategy