Reach, Teach And Serving Youth

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Marketing Financial Products to a Younger Target

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  • Reach, Teach And Serving Youth

    1. 1. The Motivation Behind Reaching, Teaching and Serving Youth
    2. 2. The Agenda <ul><li>Background </li></ul><ul><ul><li>Defining “Youth” </li></ul></ul><ul><ul><li>How Credit Unions stack up </li></ul></ul><ul><ul><li>What’s the big deal? </li></ul></ul><ul><li>Actionable Information </li></ul><ul><ul><li>New ways to look at generational marketing … </li></ul></ul><ul><ul><li>from within (Focus on Millennials) </li></ul></ul><ul><ul><li>Make the most of what you have </li></ul></ul><ul><ul><li>ID is key </li></ul></ul><ul><ul><li>Delivery is everything </li></ul></ul><ul><ul><li>Product </li></ul></ul><ul><ul><li>Price </li></ul></ul><ul><ul><li>Placement </li></ul></ul><ul><ul><li>Promotion </li></ul></ul>
    3. 3. Today’s Conversation <ul><li>Setting the Stage </li></ul><ul><li>Building the Case </li></ul><ul><li>Examples/Ideas </li></ul><ul><li>Discussion </li></ul>
    4. 4. Defining Youth 0-12 13-19 & Beyond
    5. 5. How Do Credit Unions Stack Up?
    6. 6. The Motivation Behind Reaching, Teaching and Servicing Youth Member/Non-Member Profile Member Non-members Avg. age 47.0 43.6 25-44 38% 40% Married 67% 49% Emp. full time 64% 51% College grads 35% 21% Own home 85% 67% Source: CUNA member statistics
    7. 7. Adult Members Percent Age 25 to 44 U.S. Population Source: CUNA National Member Surveys and CUNA member statistics
    8. 8. Credit Union Membership Penetration By Age Source: CUNA member statistics
    9. 9. CU Membership Status and Awareness of CUs: Consumers Age 18-34 & All Consumers Source: CUNA member statistics
    10. 10. What’s The Big Deal?
    11. 11. How Teens Save <ul><li>72% use a piggy bank or other container </li></ul><ul><li>65% have a savings account </li></ul><ul><li>16% have a checking account </li></ul><ul><li>9% invest in mutual funds </li></ul><ul><li>7% invest in stocks </li></ul>Merrill Lynch 1998 survey of young people, ages 12-17
    12. 12. Why Teens Save <ul><li>36% to pay for college </li></ul><ul><li>33% to buy a car </li></ul><ul><li>21% to purchase a specific item </li></ul><ul><li>10% to buy clothes </li></ul><ul><li>16% no specific plan </li></ul>Merrill Lynch 1998 survey of young people, ages 12-17
    13. 13. Teens Habits <ul><li>Spend $84 a week (2/3 of their own money (allowance, gifts, part-time jobs) </li></ul><ul><li>Teens deposit about $20 billion per year 28% save most money 60% save about half 12% spend immediately </li></ul><ul><li>32% of 18-19 year olds already have a credit card </li></ul>Teenage Research Unlimited report, ages 12-19
    14. 14. 3 Markets in 1 <ul><li>Current Members </li></ul><ul><ul><li>Drive down average member age </li></ul></ul><ul><ul><li>Gain share of wallet </li></ul></ul><ul><li>Future Members </li></ul><ul><ul><li>Build Loyalty </li></ul></ul><ul><ul><li>Get ‘em first </li></ul></ul><ul><li>Influence </li></ul><ul><ul><li>Reach out to parents </li></ul></ul><ul><ul><li>Establish household relationships </li></ul></ul>
    15. 15. The Motivation Behind Reaching, Teaching and Servicing Youth GENERATIONAL MARKETING TO THE MILLENNIALS
    16. 16. Background The Motivation Behind Reaching, Teaching and Servicing Youth What is Generational Marketing ? <ul><li>GENERATIONAL - understanding the fabric and background of a group of people and the impact of life events on their outlook </li></ul><ul><li>GENERATIONAL MARKETING - using the understanding of that knowledge to present a more acceptable product or service to those groups of people </li></ul>
    17. 17. It all started with a girdle… <ul><li>In 1968, President of Playtex called a research firm </li></ul><ul><ul><li>Sales were fading </li></ul></ul><ul><ul><li>His own wife had thrown away the Playtex girdle </li></ul></ul><ul><li>The findings: They were confining, stodgy, old fashioned. Daughters were not taking the lead from their mothers, they wanted something different. </li></ul><ul><li>The change: Away went stiff components, in came softer, lighter and more flexible fabrics </li></ul><ul><li>The result: Sales rose and the line was saved </li></ul>
    18. 18. The Motivation Behind Reaching, Teaching and Servicing Youth LET’S DIVE IN…
    19. 19. The Motivation Behind Reaching, Teaching and Servicing Youth Over time, perceptions compared against expectations form overall impression and mold behaviors and reactions/ actions How Different Generations are Created Form perceptions based on observations & experiences from each interaction
    20. 20. Polling Question <ul><ul><li>We do not have any marketing or services for specific generational groups. </li></ul></ul><ul><ul><li>We have a kids club and/or Seniors Club </li></ul></ul><ul><ul><li>We have a thoughtful marketing strategy to identify the needs of generations and a marketing approach to meet those specific needs. </li></ul></ul>How many of you have targeted marketing programs or services for different generational groups? <ul><ul><li>____% </li></ul></ul><ul><ul><li>____% </li></ul></ul><ul><ul><li>____% </li></ul></ul>
    21. 21. <ul><li>(and why should I care?) </li></ul>The Motivation Behind Reaching, Teaching and Servicing Youth Who are They??
    22. 22. The Motivation Behind Reaching, Teaching and Servicing Youth
    23. 23. Who are the Millennials (Gen Y)? <ul><li>Born during or after 1977 to 1995 (ages 12 – 30) </li></ul><ul><li> • 76 to 80 million individuals </li></ul><ul><li> • 12 – 19 bracket will be 35 million by 2010 </li></ul><ul><li> • $185 billion in teen spending </li></ul><ul><li> • 28% of children under age 18 live with one parent </li></ul><ul><li> • Highest level of school age children on record </li></ul><ul><li> • 1995 study showed over 13 million volunteering over 2.4 billion hours </li></ul><ul><li> • 4 million new people will be driving every year through 2010 </li></ul><ul><li> • 73% of 12 –17 year olds use the internet (12.2 hours a week spent online) </li></ul><ul><li> • 93% of 21-year olds carry a credit card, up from 60% 5 years ago </li></ul><ul><li> • Over 270,000 under the age of 25 buy homes each year (23% of total) </li></ul>
    24. 24. What has shaped them? <ul><li>Tainted Tylenol (’82) </li></ul><ul><li>Challenger Disaster (’86) </li></ul><ul><li>Gulf War (’90) </li></ul><ul><li>Waco Tragedy (’93) </li></ul><ul><li>Oklahoma City Bomb (’95) </li></ul><ul><li>Olympic Bomb (’96) </li></ul><ul><li>Columbine (’99) </li></ul><ul><li>September 11 (’01) </li></ul><ul><li>Iraq War (’02) </li></ul><ul><li>Columbia Disaster (’03) </li></ul><ul><li>Indian Ocean Tsunami (’04) </li></ul><ul><li>Hurricane Katrina (’05) </li></ul><ul><li>Virginia Tech (’07) </li></ul>
    25. 25. What has shaped them? <ul><li>Standardized Tests (80’s) </li></ul><ul><li>PCs (80’s) </li></ul><ul><li>AIDs (80’s) </li></ul><ul><li>Baby on Board (‘83) </li></ul><ul><li>In Vitro Fertilization (’83) </li></ul><ul><li>Internet (’85) </li></ul><ul><li>Required Innings Pitched (90’s) </li></ul><ul><li>Cabbage Patch Kids (’93) </li></ul><ul><li>Clinton Impeached (’98) </li></ul><ul><li>Text Messaging (’03) </li></ul><ul><li>i-Pods (’05) </li></ul>
    26. 26. Adjectives <ul><ul><li>Engaged - its all about being involved </li></ul></ul><ul><ul><li>Sheltered - kid safety rules, lockdowns </li></ul></ul><ul><ul><li>Confident - high levels of trust and optimism </li></ul></ul><ul><ul><li>Team Oriented - group learning, uniforms, peer bonds </li></ul></ul><ul><ul><li>Achieving - accountability </li></ul></ul><ul><ul><li>Pressured - to excel in multiple areas </li></ul></ul><ul><ul><li>Expert- seek experts in areas of interest </li></ul></ul><ul><ul><li>Conventional - social rules help, comfortable with parents </li></ul></ul>
    27. 27. Differences <ul><li>Matures </li></ul><ul><ul><li>“ Do it quickly” </li></ul></ul><ul><li>Boomers </li></ul><ul><ul><li>“ Do it efficiently” </li></ul></ul><ul><li>Xer’s </li></ul><ul><ul><li>“ Eliminate the task” </li></ul></ul><ul><li>Millennials/Gen Y </li></ul><ul><ul><li>“ What task?” </li></ul></ul>
    28. 28. To Understand the Millennials… <ul><li>You need to know the Generational book-ends </li></ul><ul><ul><li>Boomers </li></ul></ul><ul><ul><ul><li>Most talked about Generation </li></ul></ul></ul><ul><ul><li>Gen X </li></ul></ul><ul><ul><ul><li>The Hidden Generation </li></ul></ul></ul>… And the marketing world’s view.
    29. 29. Total U.S Births U.S population Birth Rates, 1950 - 1998 The Motivation Behind Reaching, Teaching and Servicing Youth National Center for Health Statistics, 2000. Boomers Gen X Millennials
    30. 30. The Motivation Behind Reaching, Teaching and Servicing Youth SO WHAT?
    31. 31. The Motivation Behind Reaching, Teaching and Servicing Youth “ Many parents don’t believe there is a generational disconnect between them and their teen.” AT&T Newspaper Insert
    32. 32. There is no “One Size Fits All” Members will let you know what they want and need so you can tailor financial services for them.
    33. 33. The Motivation Behind Reaching, Teaching and Servicing Youth
    34. 34. They will change the face of banking… <ul><li>More diverse </li></ul><ul><li>Large in size </li></ul><ul><li>Huge wealth transfer </li></ul><ul><li>Limitless information access </li></ul><ul><ul><ul><li>Saving for a home is a top priority </li></ul></ul></ul><ul><li>Strong preference for personal contact </li></ul><ul><li>Responsible for 70% of new business start-ups </li></ul><ul><li>Customer bases are graying….you better find a way to connect! </li></ul><ul><li>51% think they will have over $1 million in assets at some point in their life </li></ul>
    35. 35. The Motivation Behind Reaching, Teaching and Servicing Youth
    36. 36. The Secret The Motivation Behind Reaching, Teaching and Servicing Youth Manage ALL of your touch-points. Your BRAND is your most precious asset. Ensure that everyone understands the lifeblood to your success and longevity is not tomorrow, but today and yesterday.
    37. 37. Strategic Millennial Marketing Planning Process The Motivation Behind Reaching, Teaching and Servicing Youth Step 1 – Understand Your Market & Competition Step 2 – Understand Your Millennial Customer Step 3 – Position Yourself in the Market Step 4 – Develop Your Marketing Messages Step 5 – Determine Your Marketing Methods Step 6 – Set Sales & Marketing Goals Step 7 – Develop Your Budget & Metrics
    38. 38. The Motivation Behind Reaching, Teaching and Servicing Youth Evolution of Generational Marketing Efforts Emerging Optimizing Strategic time Value Returned
    39. 39. So…. Let’s Have Some Fun! The Motivation Behind Reaching, Teaching and Servicing Youth
    40. 40. Generational Marketing Road Map The Motivation Behind Reaching, Teaching and Servicing Youth
    41. 41. Your Path to Generational Focused Marketing <ul><li>Know your market and customer base. </li></ul><ul><ul><li>What you need to know. </li></ul></ul><ul><li>Know your balance sheet. </li></ul><ul><ul><li>What it tells you. </li></ul></ul><ul><li>Integrate and implement. </li></ul><ul><ul><li>How to bring it to life. </li></ul></ul><ul><li>Test and measure. </li></ul><ul><li> What to change/modify. </li></ul><ul><li>Start over again. </li></ul>
    42. 42. Action Steps <ul><li>What is the average age of your credit union’s members? </li></ul><ul><li>How is your membership distributed across these age groups: 0-17, 18-24, 35-44, 45-54, 55-64, 65+ </li></ul><ul><li>How do the age characteristics of your membership compare to local census statistics? </li></ul><ul><li>Is new member and account growth concentrated in specific age groups or widely distributed? </li></ul>
    43. 43. Strategic Marketing Planning The Motivation Behind Reaching, Teaching and Servicing Youth ANNUAL WEEKLY MONTHLY QUARTERLY SEMI-ANNUAL ANNUAL
    44. 44. The Motivation Behind Reaching, Teaching and Servicing Youth The Secret There is NO SUCH THING as over communicating… Effective communication is built on personal perception… however, you can create a reality by always being on the forefront of all issues and ensuring contact happens at least 6 times with staff and every 60 days with customers.
    45. 45. Learn From Other Industries! The Motivation Behind Reaching, Teaching and Servicing Youth
    46. 46. Ideas to Share
    47. 47. Idea Starters <ul><li>MP3s for CDs </li></ul><ul><ul><li>i-Tunes for every $100 in CD deposit </li></ul></ul><ul><li>Teen Credit Card Offer </li></ul><ul><ul><li>Loan app. includes good grades & work habits </li></ul></ul><ul><ul><li>“ Exam” for approval </li></ul></ul><ul><li>True Lifestyle Checking </li></ul><ul><ul><li>Sports teams, pet lovers, colleges, etc. </li></ul></ul><ul><ul><li>MUST include on-line banking </li></ul></ul><ul><li>First Car /Education Savings Account (or CDs) </li></ul>PRODUCTS
    48. 48. Idea Starters <ul><li>Special rates </li></ul><ul><ul><li>On focused accounts (new car/education savings or CDs) </li></ul></ul><ul><li>Rewards </li></ul><ul><ul><li>Local Gift Certificates for deposit goals (McDonalds, putt-putt) </li></ul></ul><ul><li>Gift certificates for Certificates </li></ul>PRICE
    49. 49. Idea Starters <ul><li>Brand, brand, brand </li></ul><ul><ul><li>McDonalds wrappers and preschoolers </li></ul></ul><ul><li>Website is key </li></ul><ul><ul><li>18-26 online more than TV (blog, podcast, mobile, web ads) </li></ul></ul><ul><ul><li>Link to ring tones and MP3, Trivia, Games </li></ul></ul><ul><li>Biz Kid$ </li></ul><ul><ul><li>Bill Nye for entrepreneurship and financial literacy </li></ul></ul><ul><ul><li>Underwritten by America’s Credit Unions </li></ul></ul>PLACEMENT
    50. 50. The Motivation Behind Reaching, Teaching and Servicing Youth <ul><li>Fairfax County FCU </li></ul><ul><li>Extreme Checking Account </li></ul><ul><li>“ Create a 30 second commercial to show how Fairfax County FCU Gen Y Extreme Checking Account fits your lifestyle!” </li></ul><ul><li>YouTube.com </li></ul><ul><li>Winner receives GRAND PRIZE of $1,000 cash and an Apple iPhone PLUS have their commercial broadcasted on cable TV! </li></ul>
    51. 51. The Motivation Behind Reaching, Teaching and Servicing Youth
    52. 52. The Motivation Behind Reaching, Teaching and Servicing Youth www.CUafterUSC.org
    53. 53. Idea Starters <ul><li>In School </li></ul><ul><ul><li>NEFE </li></ul></ul><ul><ul><li>School Branches </li></ul></ul><ul><ul><li>Junior Achievement </li></ul></ul><ul><ul><li>Team Sports </li></ul></ul><ul><li>Direct Mail/Email </li></ul><ul><ul><li>Make them feel special </li></ul></ul><ul><li>Brass Magazine </li></ul>PROMOTION
    54. 54. The Motivation Behind Reaching, Teaching and Servicing Youth
    55. 55. What to do now… <ul><li>Ask questions </li></ul><ul><li>Create ways to impact individual segments </li></ul><ul><li>Put the tools in the hands of the front line </li></ul><ul><li>Make it easy, simplicity is key </li></ul><ul><ul><li>In the beginning, doing it is better than doing it perfect </li></ul></ul><ul><ul><li>Perfect is the goal and a journey with many stops along the way </li></ul></ul><ul><li>Millennials’s: simplicity = accessible </li></ul><ul><ul><ul><li> ultimate choice = expertise </li></ul></ul></ul>
    56. 56. The Motivation Behind Reaching, Teaching and Servicing Youth The Secret Be a student of the game. Be successful because you say you are (and you can then prove it!) Learn from your actions, prepare for everything, create alternatives, share success/failure, constantly seek ways to become better/faster/stronger!
    57. 57. Final Thoughts… <ul><li>Focus your marketing </li></ul><ul><li>Become more involved with members </li></ul><ul><li>Perception is reality </li></ul><ul><li>Two ears, one mouth </li></ul><ul><li>How can marketing make a difference? </li></ul><ul><li>Get Started! </li></ul>
    58. 58. Eric Gagliano SVP, MarketMatch [email_address] 937-426-9848 Thank You!

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