Adapting Your Strategy for Generation Y

As the largest generation segment, the Baby Boomers, begin moving towards retirement, a new generation prepares to take over the reigns of the financial world. We have already witnessed their influence as online banking, bill pay, comprehensive websites, and debit cards are now financial service norms. The key is to make sure you are ready for them ­ the survival of your Credit Union depends on the steps you take now. In order to market effectively to this 76 million strong generation, you must first understand them.

Generation Y was born into a changing world where convenience took over patience’s role as a virtue. Technology is the driving force behind nearly everything they do starting with the Internet. The media conditions them to bypass magic marketing words like 'free' and 'save' putting honesty as one of their top concerns when dealing with a company. Finally, they are loyal to those who tailor their services specifically towards them.

Technology First

Before you market anything to younger members, log on to your website. Click through every page and ask yourself if an 18 or 23 year old could understand what you present. Do you assume they know what a home equity loan is or what is specifically needed to apply for a vehicle loan? Are you fooling yourself into thinking they know what ‘closing costs’ actually are or how an ARM mortgage works? Do you explain what APR means or how compound interest works? Start with your website and make sure your younger members can find the answers to all their questions online.

You may feel your website will become overwhelming with additional text describing and outlining nearly every product or service you offer in addition to the financial jargon used in your descriptions. A large portion of your members already know this information and do not want to sift through pages to find their simple answers. Simplify by making words such as “closing costs” links to a separate page where additional information is presented for those that need it. The point is, if you do not provide the information your members need ­ they will find it elsewhere and most likely take their business with them.

Always Tell the Truth

Today’s youth live by honesty, maybe not entirely in themselves, but more so in the companies they do business with. Words like 'free' and 'save' mean nothing to them because 1) they are exposed to such words countless times each day, 2) they are trained by the media to interpret these as lies with a hidden “catch”, and 3) they expect the majority of the items you promote as free to be so regardless. Generation Y generally maintains high loyalty to those companies they find trustworthy. Therefore, make sure all your marketing efforts are aligned with this Gen Y virtue.

What They Really Want

When marketing to these younger individuals, provide information relevant to their actual needs. First, as previously mentioned, begin with your website because this is the first place they are going ­ both before and after they open their accounts. Then move to your other marketing mediums. Above all, your younger members need the answers to their questions ­ they need financial education.

Instead of sending them a direct mailer exclaiming your great auto rates, tell them how to actually buy a car ­ what they need, how to figure costs, to consider increased insurance costs, etc. ­ the works. Instead of telling them to apply for a Credit Union credit card, explain to them the importance of choosing a card from an institution they trust along with information on how to manage debt. The average 18-24 year old carries over $6,000 in debt…they need your help regardless if they ask for it or not. With Generation Y, place more focus on providing financial education and solutions, not sales tactics.

Market Specifically to Your Younger Members                                                                                  Along the lines of the Hispanic market, Generation Y maintains high loyalty to those who market specifically to them. Promote your messages to their needs and by means applicable to them. Aside from just your message, make sure your graphics relate to your audience. First-time car and homebuyers are most likely unable to afford a luxury vehicle or $500,000 home ­ so why put these images in your materials?                                                                                
Put your ads in publications relevant to your younger members. High school yearbooks are a prime example when it comes to targeting upcoming graduates. For weeks your younger members will truck that book around school and to their friends’ houses putting your ad on display over and over. But don’t promote your services; instead, provide financial information significant to those just starting out in the world. And make sure your website is on your ad because that is the first place they are heading!

Generation Y is Your Key to Survival                                                                                                     You may feel marketing to these younger members lacks the individual attention of your efforts right now, but these are the members presently impacting your future as a Credit Union. Generation Y is filled with people just starting their families, buying their first homes and vehicles, and hopefully setting up their retirement accounts early. As mentioned, this generation remains loyal to those who are trustworthy, honest in their promotions, market specifically to them, and above all, help them.

Related Article:

Marketing to Generation Y

 

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