For most financial institutions, acquiring younger customers is a big part of their marketing plan. Almost every institution is looking for the best way to engage and sell to this audience – the fastest growing demographic. But 73% of Millennials surveyed in a Viacom Media study said they would rather handle their financial services needs with Google, Amazon, Apple, PayPal or Square than from their own bank.
Millennials don't necessarily dislike banks — they just want banks to give them a reason to better engage.
According to an ICBA Study, Millennials are the fastest-growing segment of customers in the entire banking industry. They’ll be looking to finance an education, buy a first car, or start up a business. Not to mention they also will inherit an unprecedented amount of wealth from their parents. Banks have a huge opportunity in front of them to engage this new generation – but how?
Old and New Generations
Millennials are clearly tech savvy – well connected through smart phones and social media. But that doesn’t mean that having a social media page and a mobile app is enough for banks to relate with them.
An OpenMarket study found that 76% of millennials prefer to receive texts over calls from companies – it’s less invasive, more personal and makes them feel valued. They’re accustomed to swipes and clicks, not calls and meetings. 59% receive text account information, payment reminders, and fraud alerts. And 62% receive text product offers or coupons – good marketing and sales opportunity here!
Understanding the differences between old and new generations is the first step to capture this customer base. But to effectively engage Millennials requires a targeted digital communications strategy – communications customized to their preferences, which makes the most of each interaction.
The ICBA Study concludes that Millennials bring a new perspective to banking. This generation knows that they need to better understand finances; places value in banks that help make their dreams a reality; and expects much of the banking experience to happen directly from their preferred mobile device — and all without carrying much cash!
Times Are Changing Quickly
20 years ago, smartphones were merely science fiction. Today, we use them in almost every aspect of our lives, including managing our finances. With each new generation come new disruptions. However, they also bring opportunity to create lasting value.
Financial institutions need to attract and retain quality Millennial customers. A targeted digital communications strategy drives this engagement at all relevant touch points – personalized messages that seamlessly integrate your products, services and sales offers into the Millennials day-to-day routine.
Banks that better engage Millennials – providing them with services they need and want – will attract a new, profitable client base for years to come.