Engaging millenials for financial services

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Webinar sponsored by Empathica discussing how the financial services industry can leverage great experiences to better engage with the Millennial generation …

Webinar sponsored by Empathica discussing how the financial services industry can leverage great experiences to better engage with the Millennial generation

Find a great Infographic summary of some of the research here http://forewardsapp.com/blog/influence-millenials-drive-customer-referrals/

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  • 1. Webinar Topic: How to EngageMillennials for Financial ServicesHosted by:The Business Development Institute and EmpathicaDate: June 28, 2012
  • 2. Speakers © 2012 All Rights Reserved - Confidential 2
  • 3. FINANCIAL SERVICES:UNDERSTANDING MILLENNIALS TO INCREASETHE CUSTOMER BASE, SALES AND REVENUE BY DR. NATALIE L. PETOUHOFF
  • 4. MILLENNIALS: WHO THEY ARE AS A TARGET MARKET
  • 5. MILLENNIALS: HOW THEY… • Connect to brands • Shape their opinions about products & companies • Use technology to build their networks & share information • Make purchasing decisions • Are influenced and influence others
  • 6. JUST THE FACTS • Millennials are the largest, most diverse, educated & influential shoppers on the planet • Positioned to be the wealthiest generation to date • >1.7 billion people on earth are 15 -30 yrs of age* • By 2015 in the US, annual spending >2.45Trillion/yr** • By 2018 in US, projected income will be $3.4 Trillion/yr – Surpassing Baby Boomer income** • Millennial women represent a $54B marketing opportunity, surpassing baby-boomers in consumer package goods spending*** • Have influence over their Baby Boomer parents choices & will inherent that money Sources: *CIA World Factbook **Javelin Strategy & Research Study ***IRI study
  • 7. MILLENNIALS:RANGE OF LIFE STAGES & MILESTONES • From adolescence to adulthood • From high school to college or workforce • From single to married to parents or just single • The avg age of a new mom is 25
  • 8. MILLENNIALS:LIVED THROUGH MANY LIFE-DEFINING EVENTS• 2004 Southeast Asian Tsunami• Hurricane Katrina• 2008 Sichuan (China) Earthquake• 9/11 I’ve seen a lot• The Great Recession- Banks, in my Insurance And Real Estate short life• The Facebook Revolution
  • 9. BRANDS:A FORM OF SELF-EXPRESSION• Strong sense of brand awareness • More the brand fits into their lifestyle, the more inclined to personally identify with brand • 86% share their brand preferences online with their social networks• Strong sense of brand loyalty • When they find a brand they like, 70% keep coming back • After a bad experience? Extremely difficult to win them back*Edelman The 8095 Exchange Study
  • 10. EXPRESSING SUPPORT FOR A BRAND IS A PERSONAL STATEMENT The Brand’s • Authenticity What matters most to Millennials? • Integrity • Ability to deliver • It’s deeper than for other demographics, because the online expression of support for a brand is a permanent, personal reflection of Millennials’ values • It comes down to trust • Access to online information increases/decrease that trust • Prefer to do their own research online vs. read/believe a brochure from a company • THIS IS WHY SOCIAL MEDIA MATTERS TO BUSINESSQUESTION: What’s being said about your company online?
  • 11. MILLENNIALS: HOW THEY SHAPE THEIR OPINIONS ABOUT PRODUCTS & COMPANIES• A company’s reputation can matter as much as the performance of its products* • 34% bought from a brand because of the social or political values of the company • 90% tell their family & friends NOT to purchase the company’s products when they lose trust or respect for a brand*Source: Pew Research survey
  • 12. MILLENNIALS:WHY THEY PURCHASE• 55% said price was most important reason• But price is the least important in building their trust* • 33% looked for brands who made a positive • 30% cared more about product impact on the world quality • Civically minded, propensity to combine belief with action • 20% cared more about the • 80% donate time to non-profit causes; range of products offered believe companies should implement employee volunteer programs • Look for brand’s social & environmental commitment when deciding where to shop & recommend its offerings • More likely to switch banks based on their charitable investments**Source: *Pew Research Survey **Deloitte Banking Study
  • 13. MILLENNIALS: WHO THEY TRUST FOR BRAND AND PRODUCT RECOMMENDATIONS• Information is a Key To What Influences Millennials• They look to: • Family- 2x more likely than any other generation to use family counsel as the most influential factor in making choices around money • Friends • Bloggers that document their personal experiences with products • Consumers who write real reviews• Why? • Because these groups already have personal experience with the products or brands
  • 14. MILLENNIALS:SOCIAL NETWORKS & TECHNOLOGY ARE THEIR LIFE* • 75% created a profile on a social networking site • 55% visit those sites once/day • 60% connect to the Internet wirelessly when they are away from work or home • 88% text each other • 74% new technology makes their life easier • 50% use it to be closer to their friends • 65% are disconnected one hour or less a day *Pew Research survey
  • 15. MILLENNIALS: TAKING ACTION IS A CORE VALUE• 70% recommend their favorite brands to family and friends• 47% write about good online experience• 40% have criticized a brand on a social network• 70% would create a video and post it online or write a review about their experience with a company• 20% have posted a video about themselves on line They key for brands? Inspire action
  • 16. MILLENNIALS: THEY SHARE THE GOOD & THE BAD If a Millennial has a problem with a company, instead of calling customer service• They text 5 friends and share their frustration on Facebook• The friends share the story with their peer groups• Friends comment on the incident and share their own stories of disappointment• A single event has spread like Source: http://www.sodahead.com wildfire When seeking customer service on an issue, <10% would call customer service.
  • 17. MILLENNIALS: WORD-OF-MOUTH IS A MAINSTAY “Focus on making an excellent product. If you do, then all of your marketing will be true and most of the marketing will be done by us. We are all looking for great products and brands to share with our friends. The best way to help us spread the word is by first creating a great product.”
  • 18. BANKS & MILLENNIALS
  • 19. BANKS: 2011 GLOBAL BANKING SURVEY:A NEW ERA OF CUSTOMER EXPECTATION Source: Ernst & Young Study of 20,500 participants
  • 20. BANKS: HOW DO THEY STACK UP MILLENNIALS? • 30% have 20-40% Millennials as customers • 31% have a Millennial Strategy • 37% had no Social Media Strategy • 63% said they planned to do something with Social Media *Source: Oracle Financial Services Study
  • 21. MILLENNIALS: THEIR VIEWS ON MONEY • Millennials generally: Because Baby Boomers are drawing • Love to spend from their savings, to generate revenue • Don’t have long-term Banks need to reach out to Millennials investment plans • Most popular banking products are credit, debt cards, loans (school and mortgage) • Mobile banking is a preferred banking channel • Want assistance to manage their money • Recommend their banks to family & friends *Source: Oracle Financial Services Study
  • 22. BANKS NEED A NEW WAY TO APPEAL TO CUSTOMERS The old playbook is out• Millennials don’t have to rely on product marketing information • Banks need to understand where• They can tap the whole they fit into Millennials lives world of data to make • Banks must find different ways to purchase decisions communicate with Millennials, directly and indirectly through their social networks, colleagues and influencers…
  • 23. MILLENNIALS:WANT HELP REACHING THEIR PERSONAL GOALS• They pay attention to brands that impact their goals • Affording house, buying a car, raising children, going to school… • Are financially guarded; generally have conservative asset plan allocationMay be due to:• Life-defining events they have witnessed• Have more access to financial information than predecessors at similar life stages• Don’t feel they have enough financial education to manage their investments• Bank’s products & services seem complex Source: Deloitte Study
  • 24. RECOMMENDATIONS Step 1: Accept the Millennial Generation Don’t say, “In a few years they will be like us…” Millennials are… • On the leading edge of trends that they & older generations follow • Online banking • Resistance to traditional marketing • Concern for the environment Strategies that effectively meet the needs of Millennials provide benefits for other demographics *Source: Deloitte Financial Services Study
  • 25. MILLENNIALS: CAN U UNDERSTAND THEM? *Source: www.transl8it.com
  • 26. MILLENNIALS: CAN U UNDERSTAND THEM? *Source: www.transl8it.com
  • 27. RECOMMENDATIONSStep 2: Customer Experience Channels– Integrate Them Well • Conduct customer experience – day in the life of – studies of your channels • The trend is to move from just branches: offer: the branch store, the online store, mobile store, face-to-face & social networking store • Combine store experiences in the same transaction: research in one place, educate themselves in another, purchase in another… • Make it easy to navigate / switch channels • Provide a consistent customer experience across all channels *Source: Deloitte Financial Services Study
  • 28. EXAMPLE:ING DIRECTCreated Drop-inCafé’s in LA, NYC,Philly, Wilmington• Focused on networking and learning• Branches became a social networking venue where friends & family gather, even if they aren’t make a financial transaction• Once Millennials developed a relationship with the bank, they were more likely to do banking there
  • 29. EXAMPLE: CAPITAL ONE• Opened a branch in Manhattan• Shares the space with Starbucks• Convert loose change in the bank’s bean counter machine to get a coffee• Coffee drinkers can enjoy Starbucks, watch the news on a TV and then go do a financial transaction with a Capital One Advisor• A bank becomes a place to linger, talk, socialize and bank
  • 30. RECOMMENDATIONS Step 3: Marketing As Education vs. Telling • Millennials lived in an information-intensive, connected world • Move from product marketing to relationship marketing • Provide practical information to build relationships • They are skeptical of traditional advertising; rely more on the advice of friends and family • Create blogger outreach programs to influential Millennials • Always better to have the voice of the customer provide testimonials for this group *Source: Deloitte Financial Services Study
  • 31. EXAMPLE:ROYAL BANK OF CANADA• Created a contest with User- Generated Content • Grand prize: $5,000 for best picture • How $1,000 would improve student life • Go to RBC’s Facebook Fanpage • Download and print an Arbie template • Find photo opportunities to show Arbie how $1,000 would improve their student life • Learning to surf • Travelling to Europe • Buying a 30” computer monitor • Upload the pictures and vote!
  • 32. EXAMPLE:ROYAL BANK OF CANADA Leverages social media • Community Manager • RBC Advice Center on Facebook • iPad Educational App • Mobile App Information • Daily Advice Game…
  • 33. EXAMPLE:ROYAL BANK OF CANADA Leverages social media with an RBC Advice Center on Facebook
  • 34. RECOMMENDATIONS Step 4: Make Products Simple • Millennials prefer simple, practical, affordable banking services • Show you understand they are just starting their financial lives • Use social interactions to draw attention to products • Appeal to doing good things *Source: Deloitte Financial Services Study
  • 35. EXAMPLE:ROYAL BANK OF CANADAEducation about the Mobile application on Facebook page
  • 36. EXAMPLE:ROYAL BANK OF CANADAEducation about Learning Money app for iPad on Facebook page
  • 37. EXAMPLE:ROYAL BANK OF CANADA• Sponsored Filmmakers Competition• Helped made dreams come true
  • 38. EXAMPLE: SUN TRUST• Campaign: Seeing Beyond The Money• Actively support organizations and activities that share our commitment to enriching and strengthening the communities in which we live. EXAMPLE: WACHOVIA • Central Piedmont Community College (CPCC) received a $250,000 grant • Provide retraining and counseling for displaced professional and paraprofessional workers.
  • 39. How to Engage Millennials for FinancialServices through Social MediaDr. Gary EdwardsChief Customer OfficerEmpathicaJune 28, 2012
  • 40. The Evolution of Customer Intelligence ADVOCACYStrategic Value Loyalty Satisfaction Service Customer Engagement © 2012 All Rights Reserved - Confidential 42
  • 41. Customer (Dis)Connect 85% of customers give feedback 29% believe it is acted on Empathica 2012 © 2012 All Rights Reserved - Confidential 43
  • 42. What We See as the Opportunity Drive Growth Build 1 in 3 people come Connections to a brand through a personal Desire to recommendation Connect Satisfied customers spend 33% moreDesire to Matter Americans complete 2.6 billion surveys per yearMore than 50% ofconsumers feel thatservice levels areinadequate Empathica Consumer Insights http://www.empathica.com/consumer-insights/ © 2012 All Rights Reserved - Confidential 44
  • 43. Harness the Untapped Potential Nearly 1/3 of banking customers feel their institutions provide great customer service Empathica 2010 © 2012 All Rights Reserved - Confidential 45
  • 44. Customers Trust Each Other Of consumers say they trust word-of- 92% mouth and recommendations from friends and family, above all other forms of advertising Neilson 2012 © 2012 All Rights Reserved - Confidential 46
  • 45. Millenials Most Likely to be Advocates “In the last 3 months I have recommended a certain retailer or restaurant to a friend via a social media network such as Facebook or Twitter.” 18-24 25-34 35-44 45-54 55-64 No Answer Yes 44.75 46.49 39.98 31.61 23.46 14.59 No 46.59 49.09 57.65 66.04 74.97 76.83 Don’t Know 8.66 4.42 2.37 2.34 1.58 8.58 Empathica 2012 © 2012 All Rights Reserved - Confidential 47
  • 46. It Starts With the Customer Start a Conversation 30 Million Surveys/Year 110 Million Positive Impressions on Social MediaGive a Voice to Recommend Create a Dialogue © 2012 All Rights Reserved - Confidential 48
  • 47. Take Feedback to the Next Level Increase Engagement 20,464 Customers completed mobile survey in 6 months • 25% of total responses • 58% Mobile from QR Codes © 2012 All Rights Reserved - Confidential 49
  • 48. Give Customers a Voice to Recommend “I love my local bank… the staff is friendly and always there to answer my questions…” - Shared with 500 Facebook friends Convert Customers Amplify the Voice of Find Satisfied Customers to Advocates Your Advocates 100+ Brands 12% - 20% 1 Million+ conversion Advocates Mobilized © 2012 All Rights Reserved - Confidential 50
  • 49. Find and Mobilize AdvocatesCustomer completes survey Only customers with high intent to Customer makes a personalizedand intends to recommend recommend are invited to make a recommendation recommendation Email Post Facebook Post Twitter Post Recommendation is shared via Facebook, Twitter and email with all of the advocates’ friends © 2012 All Rights Reserved - Confidential 51
  • 50. GoRecommend – Amplify Great Service Experiences to the World The Impact of Advocacy 100+ 20% Accept Brands InvitationCustomer completes survey Only customers with high intent to Customer makes a personalizedand intends to recommend recommend are invited to make a recommendation recommendation Email Post Facebook Post Positive experiences shared with over Over 1 Million 110,000,000+ Advocates Mobilized Friends and Followers Twitter Post Recommendation is shared via via the Facebook Recommendation is shared Facebook, Twitter newsfeed and Twitter the advocates’ friends and email with all of page with all of the advo © 2012 All Rights Reserved - Confidential 52
  • 51. Connections With 5000+ Customers in 3Months Top 2 Box Score 76% © 2012 All Rights Reserved - Confidential 53
  • 52. Advocacy Not Advertising Paid Advertising 13.5 X higher click rate than Facebook advertising 8.5 X higher click rate than Google advertising © 2012 All Rights Reserved - Confidential 54
  • 53. Socialize the Customer Experience “We’re turning attention to linking operations to marketing through Social CEM. The aim is not to drive online advertising impressions, but to explicitly and transparently drive the behavior of customers, front line service staff and managers.” © 2012 All Rights Reserved - Confidential 55
  • 54. Who We Are • Full CEM product suite – Patent-pending social media advocacy, customer feedback, and employee engagement solutions • 150+ employees in North America and the UK • 30 million surveys, 50+ countries, 25+ languages • Robust growth plan driven by industry-leading products © 2012 All Rights Reserved - Confidential 56
  • 55. Thank You Gary Edwards Chief Customer Officer gedwards@empathica.comContact us to Learn Morehttp://www.empathica.com/industries/banking-insurance/View Recorded Webinarhttp://cem.empathica.com/Web-WB-BDI-Banking-Webinar