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How to win over millennials
The document discusses strategies for financial institutions to effectively engage with millennials, highlighting their unique values, behaviors, and preferences. Millennials prioritize authenticity, local engagement, and technology in their financial relationships, often feeling disconnected from traditional banking. To succeed, institutions must tailor their messaging, enhance customer experience, and foster genuine relationships to inspire loyalty among this demographic.
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How to win over millennials
- 1. Lori Azevedo, SVPKasasa How to Win Over Millennials: Are All Your Bases Covered?
- 2. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Elusive Diverse Responsible Lazy Self-centered Millennials Millennials… the issue is us!!! Fun Experience Driven Tech-enabled
- 3. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. LIKE TO CREATE BUZZ WANT TO FEEL CONNECTED DESIRE AUTHENTICITY DON’T TRUST BIG BUSINESS Millennials Love Local Source: socialchorus.com Millennials-as-Brand-Advocates-Ebook-SocialChorus. Philanthropydaily.com Millennials-the-next-civic-generation Forbes 5-traits-that-define-the-80-million-millennial-customers-coming-your-way/
- 4.
- 5. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. The Generational Timeline Generation by Birth Year Greatest Generation Until 1946 (Tom Brokaw) Baby Boomers 1946-1964(Census Bureau) Gen X 1965-1984 (Harvard Center) Gen Y (Harvard Center) Millennials 1982-2004 (Strauss and Howe) TBD 1930 1940 1950 1960 1970 1980 1990 2000 2010 Source: The Wire/The Atlantic
- 6. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Power In Numbers 76.4 MILLION Population $1.99 TRILLION Buying power 21-38 Age range $62,000 Median HH income
- 7. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Power In Numbers 53% Married or partnered 69% Employed 44% Parents 46% College grads
- 8. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Notable Millennial Behaviors Came of age with the internet, mobile devices, and ubiquitous social media 66% have a checking account Most ethnically diverse generation in U.S. history Getting married and having their first child later than any previous generation Buying their first home later than previous generations Greatest number of college graduates ever – twice as many degrees conferred in 2009 as in 1970 Only 33% have a credit card
- 9. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Millennials Surpass Boomers According to Pew Research Gen Y surpassed Boomers in the workforce in Q1 of 2015 U.S. Labor Force by Generation, 1995-2015 In millions 70 60 50 40 30 20 10 0 1995 2000 2005 2010 2013 2015 Q1 Boome rs Gen Xers Millennial s Silents 53.5 52.7 44.6 3.7
- 10. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Values Similar To Past Generations TOP 10 MILLENNIAL VALUES TOP 10 DIFFERENTIATING MILLENIAL VALUES* 1 Success +32 Adventure 2 Loyalty +29 Ambition 3 Happiness +24 Discovery 4 Equality +23 Creativity 5 Authenticity +21 Individuality 6 Courtesy +19 Sexuality 7 Comfort +18 Diversity 8 Responsibility +18 Learning 9 Curiousity +16 Purpose 10 Sustainability +14 Curiosity Source: CEB Iconoculture Values and Lifestyle Survey, September 2015 *Number denotes rank differential in comparison to total population
- 11. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution.
- 12. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. What Makes Consumers Switch? 13.25% Source: Making The Switch. AOL Study, 2017 of Millennials are open to switching financial institutions, credit cards or brokerage accounts 45% MARKETING & ADVERTISING 40% NEGATIVE EXPERIENCES 40% LIFE EVENT 20%
- 13. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. How Do They Decide? Source: Making The Switch. AOL Study, 2017 of consumers have one institution in mind when they start shopping 66% 90% of consumers choose the institution they initially had in mind
- 14. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Technology and Social Behavior Mobile On Demand Social Always On
- 15. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Millennial Purchase PathTraditional Marketing Funnel Millennial Purchasing Behaviors Have Changed
- 16. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. As Engagement Evolves, Has Our Industry?
- 17. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. 1. Get Noticed. Grab people’s attention with comprehensive, consumer research–based messaging designed to draw in your target market.
- 18. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. 2. Introduce Yourself. Make it easy for people to learn about who you are, what you’re about, and what you can do for them.
- 19. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. 3. Build the Relationship. Compel people to action — then cross-sell in a way that delivers value to account holders.
- 20. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. 4. Strengthen the Relationship. Connect account holders with information, products and services that they care about at the moment that it is the most valuable to them.
- 21. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. 5. Inspire Fandom. Become a topic of conversation online, around the water cooler, and at the dinner table and get the profit that comes with it.
- 22. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Complete, Cross Tactic Engagement TV Pandora PR OOH / Event Digital Display Direct Mail - Prospect Prospect Email SMS / MMS PPC Social Owned Web In Branch Remote Online / Mobile Email Cross- Sell Direct Mail Cross- Sell Promotion – Product Enhancement Social Member Promotion Loyalty Marketing Referral Programs
- 23. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Get Noticed. Grab people’s attention
- 24. Know The FinancialInfluences to Deliver Relevant Messages
- 25. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Financial Influences Financial attitudes similar to The Silent Generation Financial Crisis in formative years makes them extremely conservative Yet 30% under- employment 10.6% un- employment Compared to 4.15 and 4.3 Hit hardest by Post Recession Blues More educated 1/3 of 25-29 have BA Source: Accenture Outlook – Millennials Your Mortgage Lending Present and Future. Record breaking student loan debt
- 26. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Average Unemployment Rate May 2014 – May 2015 10% 6% 5% 4% Younger Millennials (20-24 years old) Older Millennials (25-34 years old) Youngers Xers (35-44 years old) Older Xers/Younger Boomers (45-54 years old) Source: Bureau of Labor Statistics, May 2015.
- 27. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Financial Attitudes Trade brand for financial rewards 70% seek advice 61% rate products online By all standards they are frugal Brand Loyal until parenthood Over 50% of investible assets in cash Less than 1/3 of assets in Equities 15% of assets in fixed income Source: Accenture Outlook – Millennials Your Mortgage Lending Present and Future.
- 28. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Millennials Self-Descriptions
- 29. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. They Feel Like All Institutions Are The Same The number one reason (58%) people don’t end up switching institutions, is that they feel they are the same. 21% 40% 58% Haven't found a better bank Too much of a hassle Lack of differentiation Source: Making The Switch. AOL Study, 2015
- 30. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Ask For Kasasa
- 31. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Speak The Same Language
- 32. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Branch Enablement Ownable Promotions Product Enhancement Kasasa Media Make consumers’ in-branch experience exemplary and energize your front-line staff through prescribed training. Best-in-class tools, created by experts in the marketing industry and using the latest, most effective tactics and programs. Professionally designed campaigns, events, sponsorships and impactful partnerships bring your location, brand and your community, to life! Through our award winning creative campaigns and an effective communication strategy, we enable you to reach your prospects across multiple geo-targeted channels: • Co-branded In-branch collateral • Front-line staff and manager training • Contests • In-branch Refer-A-Friend • Team readiness tools • Direct mail for conversion, cross-selling, prospecting • Email programs • E-Statement adoption • Debit card use • Community promotions • PR awareness promotions • Consumer engagement kits • National scale promotions • TV • Radio • Outdoor • Online • Social media • Targeted reach
- 33. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Introduce Yourself. Make it easy for people to learn about who you are, what you’re about, and what you can do for them.
- 34. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Demand an integrated seamless experience across channels 68% Provide A Seamless Experience Source: Accenture Outlook – Who are millennial shoppers and what do they want?
- 35. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Start online when searching for a banking product 88% Source: Kasasa Analytics
- 36. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Engagement Built for Millennial Users
- 37. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Build Relationships. Compel people to action —in a way that delivers value to members.
- 38. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. of 18-34 year olds will share personal data with companies if they get something in return, compared to 44% of 35+51% Millennials Like Brands with Benefits Source: Survey by USC Annenberg center for the Digital Future
- 39. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Source: Forbes – How Millennial Money Habits Could Shake Up Fin Services Say they are open to switching to another company offering better products and services 48% …And They Listen
- 40. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Value and Quality Drive Shopping Base: Millennial Women Source: CEB Iconoculture IdeaLab Millennial Women, February 2015. QP1a: When shopping for (…), how important are each of the following in making your purchase decisions? Saves me money High quality Serves a purpose Saves me time Supports good health Health & Beauty Customized to my needs as a woman Customized to my needs as a mother Saves me money High quality Serves a purpose Clothing, Shoes & Accessories Customized to my needs as a mother High quality Supports good health Saves me money Serves a purpose Food Products & Groceries Fun to use Saves me time High quality Saves me money Serves a purpose Electronics Note: Ranks are based on those who assigned a 4 or 5 on a 5- point scale, where 1 means “not at all important” and 5 means “very important.” Of 16 purchase motivators, 1 is the strongest and 14 is the weakest. 1 2 3 4 5
- 41. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Millennials Dream Of A Better Relationship want their institution to be a partner/friend but only 8% trust you66% Source: Financial Services in a mobile-first World; Facebook 2017.
- 42. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Nearly 40% of Millennials Don’t Believe Community Institutions Have The Products They Need Source: Consumer Banking Insights Study 2014 “The big banks have money to invest in technology and IT departments and people...”
- 43. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Offer Products Consumers Want Free, No Fees High Interest Rewards Cash Back Source: Consumer Banking Insights Study 2015 More Important to Millennials2x
- 44. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Product Value Promoted In A Way They Understand REWARDS Local Service
- 45. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Strengthen Relationships. Connect members with what they care about.
- 46. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. don’t want companies randomly tracking their behavior, but when incentives are introduced like coupons or deals… 70% 56% will share location with local business 25% will divulge their personal info
- 47. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. How They Label Your Banking Relationship Describe it as transactional onlySource: Consumer Banking Insights Study 2017 Say it’s a relationship 79% 21%
- 48. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Millennials Prefer Local Service 2 out of 3 Consumers Prefer to Bank Locally Source: Consumer Banking Insights Study 2017
- 49. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. They Shop Around For Other Services Auto Loans 70% 61% 52% Source: Banking Reshaped by the Customer. Accenture Study, 2017 Brokerage Accounts Home Mortgage
- 50. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Proactive product recommendations52% Millennials Are Open To Promotions
- 51. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Inspire Fandom. Become a topic of conversation online, around the water cooler, and at the dinner table and get the profit that comes with it.
- 52. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. They Crowdsource Financial Guidance Millennials drive of the financial conversations on Facebook (6.5 million posts, comments, likes and shares) comments per post on banking conversations happen on mobile 40% 76% 7.3
- 53. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. Glen gets his unique link and clicks to share it on Facebook.
- 54. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution. How To Compete In This New Reality Put Consumers At The Center Cover All Your Bases2 1
- 55. © 2017 Kasasa,Ltd. All rights reserved. Not for distribution.
- 56. Want to learnmore? (512) 349-4169 ContactUs@Kasasa.com
Editor's Notes
- #3 They both grew up in the inception of the world wide web in the 90s. Ideas & self descriptors - Comes down to one thing: they have different habits than prior generations because of that The issue and how we address them is our started point - how we address them Me Time - belief as a group that if they are not working on themselves they cannot be in service to others This group redefines What they are good at / interested in Look at what the next generation is going to be like? Several names have come up for this generation, iGen (wiki, most popular) or Founders (MTV announced this in Dec ‘15) http://time.com/4130679/millennials-mtv-generation/ Generation Z (commonly abbreviated to Gen Z, also known as iGeneration, Homeland Generation or Plurals) are the cohort of people born after Generation Y/Millennials. The generation is most commonly defined with birth years starting in the mid-1990s,[1][2][3][4][5] although the early[6] or late 1990s[7][8] and early 2000s[9] have also been used as starting birth years for this generation. A significant aspect of this generation is its widespread usage of the internet from a young age. Members of Generation Z are typically thought of as being comfortable with technology, and interacting on social media websites for a significant portion of their socializing. Some commentators have suggested that growing up through the Great Recession has given the cohort a feeling of unsettlement and insecurity.
- #4 73% Volunteer Locally and 83% donate According to Edelman Digital 40% would rather buy local even if it costs more 7 in 10 believe its their duty to rate products and experiences…experiences are local 37% Distrust Big Business
- #6 3 generations started and stopped with historical events that can be tracked pretty easily Greatest generation – came home from the war then came the Boomers Boomers ended with wide-spread contraception Then Gen X Gen Y & Millennials – some overlap when people count them But overall, the change here is related to technology implementation and adoption TBD – 14-16yr olds – no good name yet Millennials – Experience TBD - Product They both grew up in the inception of the world wide web in the 90s. Look at what the next generation is going to be like? Several names have come up for this generation, iGen (wiki, most popular) or Founders (MTV announced this in Dec ‘15) http://time.com/4130679/millennials-mtv-generation/ Generation Z (commonly abbreviated to Gen Z, also known as iGeneration, Homeland Generation or Plurals) are the cohort of people born after Generation Y/Millennials. The generation is most commonly defined with birth years starting in the mid-1990s,[1][2][3][4][5] although the early[6] or late 1990s[7][8] and early 2000s[9] have also been used as starting birth years for this generation. A significant aspect of this generation is its widespread usage of the internet from a young age. Members of Generation Z are typically thought of as being comfortable with technology, and interacting on social media websites for a significant portion of their socializing. Some commentators have suggested that growing up through the Great Recession has given the cohort a feeling of unsettlement and insecurity.
- #9 There are a lot of stats here. We need to understand them and how they might impact our business. Married later, kids later, saving later. Home buying later means fees and interest income later Less interest in credit b/c they are loaned up
- #10 For the first time Millennials or Gen Y have reached parity with the Gen X workers and now out A large group with a ton of spending power. So for our industry we have to learn to connect with them and figure out what they need from a product standpoint. So to start that off we are going to look at a few stereo-types that are very prevalent.
- #11 In the eyes of generation driven to success like the boomers or xers, the open definition of success as happiness has created the impression of Laziness or self-centered. But in fact they simply tend to gravitate toward experiences and balance rather than the purchase of conspicious things. Overall they are very responsible and as they become parents, are indicating that they will fold their children into their lifestyle rather than reshaping the world around their kids like the x-ers and boomers.
- #12 This is how you meet them where they are – consumer-centric strategy. We refer to this as a relationship platform with products, technology and marketing at key stages to maximize value at each stage. Get noticed with quality marketing that breaks through the clutter Introduce yourself. Provide information about who you are on your website and quality training for reps in-branch. It is where you educate, inform – then attract and sell. Who are you, what are you about and what can you do fo rthem. Build the relationship is the “moment of truth”. We have selling technology that allows staff to easily sell and upsell. Strengthen the relationship – through offering continued stream of relevant products, at the time when the consumer needs them. Need focused marketing intelligence and quality programs to achieve this. Inspire fandom – it is not about just growing the base today, it is about sowing the seeds in the market so that you get continuous growth through referrals – the highest quality leads to your FI. You need a unique and easy way to share that makes it rewarding and also cool and fun. great experiences We call this a relationship platform – it focuses on maximizing value for the consumer and FI at key stages to increase value and profit for the FI.
- #13 How many people are surprised Marketing & Adv is 40%? I was very surprised. Which one of these things can you control? This is a huge opp and if you don’t have the mike, you can’t control it.
- #14 You have to be present all of the time to be part of the 2/3 (66%) How many people do you think went with the FI they first wanted?
- #15 social media - respond well to social references from those in their social network. over 28% say they’d actually buy something based on a reference from their peers google social media - respond well to social references in their network on demand on the on demand portion - lot of activity here looking here one of the things that kasasa is taking advantage of and focusing on is video over 65% of internet traffic is video related. by 2019 expected to be upwards of 90% Source: Facebook internal data, US only; Oct 1, Jan-Dec 2015 11% of those who don’t currently use it say they prob or definitely will in the next 12 mo. What do they do? 94% check account balances or recent transactions 39% of mobile payment users with smartphones have made a POS payment using their phone in the last 12 mo. 22% of smart phone owners have made a mobile purchase 47% of smart phone users have comparison shopped with their phone while at a retail store, 33% have scanned a barcode 42% use their smart phone to browse product reviews 63% check their balance before making a large purchase
- #16 Technology has replaced the traditional linear path with a circular one. Consumer-centric marketing with an emphasis on engagement is essential. Because the path is no longer direct, methods for tracking results are less effective.
- #18 Drive profit and growth by providing value to account holders at moments that matter. Turn people into profitable brand advocates who share their awesome experiences with family, friends, and everyone in between. Get noticed with quality marketing that breaks through the clutter. Consistent plan-driven marketing and professional support Market share Current account holders Segmentation Introduce yourself. Provide information about who you are on your website and quality training for reps in-branch. It is where you educate, inform – then attract and sell. Who are you, what are you about and what can you do fo rthem. Build the relationship is the “momemnt of truth”. We have selling technology that allows staff to easily sell and upsell. Strengthen the relationship – through offering continued stream of relevant products, at the time when the consumer needs them. Need focused marketing intelligence and quality programs to achieve this. Inspire fandom – it is not about just growing the base today, it is about sowing the seeds in the market so that you get continuous growth through referrals – the highest quality leads to your FI. You need a unique and easy way to share that makes it rewarding and also cool and fun.
- #19 Drive profit and growth by providing value to account holders at moments that matter. Turn people into profitable brand advocates who share their awesome experiences with family, friends, and everyone in between. Introduce yourself. Provide information about who you are on your website and quality training for reps in-branch. It is where you educate, inform – then attract and sell. Who are you, what are you about and what can you do fo rthem. A great online branch has 2 parts: sales-driven website and online account opening Build the relationship is the “momemnt of truth”. We have selling technology that allows staff to easily sell and upsell. Strengthen the relationship – through offering continued stream of relevant products, at the time when the consumer needs them. Need focused marketing intelligence and quality programs to achieve this. Inspire fandom – it is not about just growing the base today, it is about sowing the seeds in the market so that you get continuous growth through referrals – the highest quality leads to your FI. You need a unique and easy way to share that makes it rewarding and also cool and fun.
- #20 Build the relationship is the “momemnt of truth”. We have selling technology that allows staff to easily sell and upsell. Strengthen the relationship – through offering continued stream of relevant products, at the time when the consumer needs them. Need focused marketing intelligence and quality programs to achieve this. Inspire fandom – it is not about just growing the base today, it is about sowing the seeds in the market so that you get continuous growth through referrals – the highest quality leads to your FI. You need a unique and easy way to share that makes it rewarding and also cool and fun.
- #21 Drive profit and growth by providing value to account holders at moments that matter. Turn people into profitable brand advocates who share their awesome experiences with family, friends, and everyone in between. Strengthen the relationship – through offering continued stream of relevant products, at the time when the consumer needs them. Need focused marketing intelligence and quality programs to achieve this.
- #22 Inspire fandom – it is not about just growing the base today, it is about sowing the seeds in the market so that you get continuous growth through referrals – the highest quality leads to your FI. You need a unique and easy way to share that makes it rewarding and also cool and fun.
- #23 Marketing tactics can influence consumers at more than one stage in the buying process — and while they may not result in an immediate purchase, they are key components in the purchase cycle.
- #28 So if you want your portion of the cash or want them to seek advice from you, what do we need to understand.
- #35 The seek the “cheapest return option”. In other words, the want value from rewards, discounts, and services….confirmed online by consumer feedback.
- #40 The seek the “cheapest return option”. In other words, the want value from rewards, discounts, and services….confirmed online by consumer feedback.
- #42 Source: Financial Services in a mobile-first World; Facebook. 2017.
- #48 That’s great news! Stat: If everything were equal, 2 out of 3 US adults (66 percent) would rather bank at a community bank or credit union than one of the big national banks. - 64% of consumers think CFIs have better personal service than megas
- #49 That’s great news! Stat: If everything were equal, 2 out of 3 US adults (66 percent) would rather bank at a community bank or credit union than one of the big national banks. 64% of consumers think CFIs have better personal service than megas 79 percent of consumers think it is valuable to bank at an institution with a local branch nearby; 86 percent of Millennials say the same.
- #51 The seek the “cheapest return option”. In other words, the want value from rewards, discounts, and services….confirmed online by consumer feedback.
- #56 This is how you meet them where they are – consumer-centric strategy. We refer to this as a relationship platform with products, technology and marketing at key stages to maximize value at each stage. Get noticed with quality marketing that breaks through the clutter Introduce yourself. Provide information about who you are on your website and quality training for reps in-branch. It is where you educate, inform – then attract and sell. Who are you, what are you about and what can you do fo rthem. Build the relationship is the “moment of truth”. We have selling technology that allows staff to easily sell and upsell. Strengthen the relationship – through offering continued stream of relevant products, at the time when the consumer needs them. Need focused marketing intelligence and quality programs to achieve this. Inspire fandom – it is not about just growing the base today, it is about sowing the seeds in the market so that you get continuous growth through referrals – the highest quality leads to your FI. You need a unique and easy way to share that makes it rewarding and also cool and fun. great experiences We call this a relationship platform – it focuses on maximizing value for the consumer and FI at key stages to increase value and profit for the FI.