COMMUNICATING TO GENERATION

Y AND Z: YOUR FUTURE, YOUR

BUSINESS

© 2015 DOCUMENT Strategy Forum. All rights reserved.

Communicating to Generation Y and Z:

Your Future, Your Business

Mandi McCoy, Senior Product Manager

DST Customer Communications

May 12, 2015

About Your Speaker

3

Ms. McCoy is responsible for

deploying address quality and postal

initiatives that drive down postage

costs, improve response rates and

extend customer loyalty and

profitability.

Mandi McCoySenior Product Manager,

DST Customer Communications

Agenda

✔ Who are Gen Y and Z?

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✔Generations Define Technology Expectations

✔ Best Practices and Insights

✔ Peer-to-Peer/Questions

Who are Generation Y and Z?

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Generation Z

Generation Y

Who are Generation Y and Z?

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Who are Generation Y?

Also known as Millennials

Between ages 20-35

82 million+ people

25% of the U.S. population

Larger than the Baby Boomers

3X the size of Generation X

Y # i %

> 3x

Tech savvy

http

Buying power of $2.45+

trillion

$

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Generation Y

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Generation Y – The Now

Key Characteristics• Highly social, networked with technology and personal

relationships

• They want technology to assist—not dominate– communication

• Peer-to-peer sphere of influence – make decisions based on friend’s recommendations and opinions

• Environmentally and socially aware

• Most educated and diverse generation in history

• Adaptable and open to change

Who are Generation Z?

Also known as Millennials

Between ages 20-35

82 million+ people

3X the size of Generation X

Y # i %

> 3x

Tech savvy

http$

9 Source: Oracle

Also known as Creators or

iGen

Under 20 years old

78 million+ people

~25% of the U.S.

population

Multi-task across screens

1 in 4 volunteer

Z # i %

5

Technoholics

http#$

Buying power of $44+ billion

Generation Z

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Generation Z – The Future

Key Characteristics• Culturally connected

• Communicates via images (emoticons, emojis, pictures, video)

• Entrepreneurial and independent mindset

• Prefers preference settings and control

• Lacks brand loyalty – will change brands in search of higher quality

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Generations Define Technology Expectations

Characteristics Generation Y(1981-1995)

Source: Barclays

Formative experiences

9/11 terrorist attacksPlayStation

Social MediaInvasion of Iraq

Reality TVGoogle EarthGlastonbury

Economic downturnGlobal warming

Global focusMobile devicesEnergy crisisArab Spring

Produce own mediaCloud computing

Wiki-leaks

Attitude towards technology

Digital Natives “Technology” entirely dependent on IT; limited grasp of

alternatives

Signature Product

Communication Media

Communication Preference

Preference when making financial decisions

Google glass, graphene, nano-computing, 3D

printing, driverless cars

Hand-held (or integrated into clothing)

communications devices

Tablet/Smart Phone

Text & social media

Online & mobile(text messaging) Facetime

Maturists(pre-1945)

Baby Boomers(1945-1960)

Generation X(1961-1980)

2nd World WarRationing

Fixed-gender rolesRock ‘n’ Roll

Nuclear familiesDefined gender roles –particularly for women

Cold WarPost-War boom

“Swinging Sixties”Apollo Moon landing

Youth cultureWoodstock

Family-orientatedRise of the teenager

End of Cold WarFall of Berlin WallReagan/Gorbachev

ThatcherismLive Aid

Introduction of first PCEarly mobile tech.

Latch-key kids; rising levels of divorce

Largely disengaged Early information technology (IT)

adaptors

Digital Immigrants

Automobile Television Personal Computer

Formal letter Telephone E-mail & text message

Face-to-face Face-to-face ideally, Text messaging or e-mail

Face-to-face meetings Face-to-face ideallyOnline – would prefer

face-to-face Face-to-faceSolutions will be

digitally crowd-sourced

Generation Z(Born after 1995)

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Print and digital are not in competition; they are complimentary. And you will need them both.

Best Practices and Insights

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Best Practices and Insights

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For the best response rate, use a multi-touch

approach

Keep the conversation going

Continuously innovate products and services

Best Practices and Insights

Collaborate and Crowdsource

• Solicit input and ideas to come up with innovative products

the customer wants

• Content creators and users

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Best Practices and Insights

There’s a Difference in Social Media Preferences

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Source: FICO © 2015 The Financial Brand

Email Text message Bank website Mobile app

Preferred communication channels for communication of banking

information

Best Practices and Insights

Channel Preference Management and Customization

• Not all Millennials and Gen Z are alike

• Match interactions with individual customer preferences (product notifications, alerts, sales, services, etc.)

• Customize communication to increase engagement and improve the consumer experience

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• Both are actively engaged in making the world a better

place

• Promote community outreach both local and global

Social Responsibility

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Offer Repeat Incentives

Behavioral incentives

• Create a user experience that allows an interaction (coupons, scan QR/augmented reality, etc.)

• 68% of Millennials (ages 18-24) and 75% (ages 25-34) react to advertisements in print newspapers (including coupons)

- Newspaper Association of America

Loyalty incentives

• Send an incentive ‘just because’ and let them know they are valued

(Source Iron Mountain)

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Consider it now. With 160+ million Generation Y and Z members, the future is right around the corner—and in some cases already at the door.

Question: How could some of these concepts fit within your business model?

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Peer-to-peer Sharing/Questions?

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Stay in touch!

816.435.3419

linkedin.com/in/mandimccoy

customercommunications.com

Mandi McCoySenior Product Manager, DST Customer Communications

mmccoy@dstoutput.com

twitter.com/custcomm

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SUPPORTING SLIDES

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Fun Facts about Millennials

ALMOST 8 OUT OF 10 MILLENNIALS SAY “PHYSICAL CARDS/LETTERS MAKE THEM FEEL MORE CONNECTED TO PEOPLE THAN DIGITAL NOTES (EMAILS, SMS, EVITES, ETC.) (source Iron Mountain)

87 PERCENT OF MILLENNIALS SAY THEIR SMARTPHONE NEVER LEAVES THEIR SIDE (source Mobile Marketer)

80 PERCENT SAY THAT THE FIRST THING THEY DO IN THE MORNING IS CHECK THEIR SMARTPHONE (source Mobile Marketer)

1 IN 3 MILLENNIALS WISH THAT NEARLY EVERY INDUSTRY WOULD ADOPT MORE MOBILE IMAGING FUNCTIONALITY, SO THEY WOULD BE ABLE TO ENTER INFORMATION BY SNAPPING A PICTURE (source Mobile Marketer)

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Fun Facts about Generation Z

Source: Marketo infographic, Generation Z Marketing’s Next Big Audience

52% USE YOUTUBE OR SOCIAL MEDIA FOR TYPICAL RESEARCH

ASSIGNMENTS

60% WANT THEIR JOBS TO IMPACT THE WORLD

25% OF 13- TO 17-YEAR OLDS LEFT FACEBOOK IN 2014

41% SPENDS 3+ HOURS PER DAY ON COMPUTERS

(NON-SCHOOL RELATED)

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Print and Digital Preferences

60 PERCENT OF MILLENNIALS SAY THE TYPE OF INFORMATION BEING CONSUMED IS IMPORTANT WHEN CHOOSING PRINT OR DIGITAL (source Omnipress)

86 PERCENT OF MILLENNIALS AGREE THAT THE WORLD IS MORE CONNECTED THAN EVER, BUT STILL THINK THERE IS A PLACE FOR PRINTED MATERIALS (source Omnipress)

MILLENNIALS WANT TRANSACTIONS AND ENROLLMENT PROCEDURES TO BE FAST AND EASY (source Mobile Marketer)

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Interruption

Reaction

Heavy Users

Big Promises

Passive Consumers

OLD MODEL

Engagement

Interaction

Engaged Participants

Personal Gestures

Active Co-creators

NEW MODEL

Paradigm Shift for Engagement

Source: American Millennials, FutureCast

Resources

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FICO Millennial Banking Insights and Opportunities

www.naa.org/millennials

www.canalys.com/newsroom/3d-printing-market-grow-us162-billion-2018

www.mobilemarketer.com/cms/news/research/18782.html

www.barkleyus.com/AmericanMillennials.pdf

www.huffingtonpost.com/tim-elmore/contrasting-generation-y-_b_5679434.html

http://www.slideshare.net/sparksandhoney/generation-z-final-june-17

https://wealth.barclays.com/employer-solutions/en_gb/home/research-centre/talking-about-my-

generation.html