Mastering the Millennials: Five ways to get you positioned
If you’re around any Millennials (18 to 34) you probably know that they are, in general, frugal and always price shopping. Which plays into their skepticism and somewhat distrusting nature. They grew up with technology and understand how to use it to make sure they are getting the best deal and that no one is trying to sucker them. On the other hand, they want a sense of connection to community, in part, because they trust it, and they value financial security. This spells marketing opportunity for credit unions. Credit unions are the best deal. Credit unions have a connection to community, therefore trustworthy, and credit unions can provide financial security via numerous services. Here are five ways to position your credit union with the millennial market.
- Differentiated marketing
Studies show that millennials do not have a seasoned loyalty toward their financial institution. While this is bad news for the incumbent, challengers with superior creative, strategies and offers have a decent chance of wooing new customers.
- Expanded mobile banking
Millennials grew up in the digital age, and the majority prefer mobile banking for day-to-day transactions once their account has been opened at a branch. A recent survey posted on FindABetterBank.com found that over 70 percent of Millennials considered mobile banking a “nice-to-have” or “must-have.” This compared to just over 50 percent of shoppers age 30-plus.
- Low fees
Millennials are often in the midst in significant life changes that impact their financial freedom: facing student loan debts after graduating from college; looking for a new or better job; preparing to get married or buy a home. They are apt to choose a financial institution that can offer accounts with low fees.
The website has become the new front door of the credit union. Members “walk in” through a digital front door and are instantly greeted by many eye-catching displays. The great risk (or opportunity) is how easy it is for millennials to move between financial institutions. Consumers can “walk in” to many different financial institutions on their laptop, tablet, or smartphone. Each site will represent a different feel for the consumer just like branch design. Designing a website that will catch the eye, and keep the visitor engaged, can be the beginning of a lifelong relationship with a member. It also allows a credit union to tailor their marketing offers for members’ various needs. Ads that are tailored to members’ profiles (built through data analytics) will allow credit unions to improve their marketing campaigns.
Members are trying to accomplish certain tasks in their financial life and are hoping for an award upon completion. Credit unions must build gamification into their digital strategy to guide membership into accomplishing financial goals. Finance can be boring for millennials but adding a game will allow credit unions to achieve strategic goals while helping members become financially strong.
Some great examples of marketing to millennials.