3 minutes
To grow effectively, credit unions need Millennials. Born between 1981 and 1996, the 80 million U.S. Millennials, also known as Gen Y, constitute the largest generational group ever and a quarter of the population.
“One of the first things that jumps out as to why we need to attract Millennials: the sheer size and buying power of the group,” said Jesse Boyer, president/CEO of CUES Supplier member and partner DigitalMailer, Inc. Boyer presented the CUES webinar “Marketing Your Credit Union to Millennials.”
According to Forbes, Millennials have $200 billion in annual buying power. And forecasts show they’ll spend $10 trillion in their lifetimes in the U.S. alone.
“Gen Y consumers are extremely important because they represent the future of your membership, and the purchasing behaviors of this demographic will represent the status quo of future generations. If we can reach this group, we will have the ability to attract even younger generations of members,” said Boyer, a 20-year CU industry veteran.
While he was quick to add that each person is first an individual, then a member of a generational group, Boyer identified five Millennial tendencies. As a group they:
- Expect technology to work. So make sure it does!
- Are a social generation. Engage them through social media.
- Collaborate and cooperate. This idea applies not only with each other but with brands. As long as Millennials think their say matters, they’ll engage.
- Look for adventure. Commerce and obligatory business travel are opportunities vs. burdens.
- Are passionate about their values. And the values of the companies they do business with. On a whole, Millennials are driven by good citizenship.
Boyer also offered several ways CUs can market to this group:
Play up the Credit Union Difference
Aggressively show that you’re living your mission. “We’re in a position to attract Millennials more than any other financial institution. They love buying local. Be proud of what you do and how we differ from those big banks and the tech companies trying to nip at our heels. Go back to your core story,” Boyer said.
“They (Millennials) love Nike, Sony, Apple and Samsung,” he said. At the same time, they list the four largest U.S. banks in their top 10 hated brands. According to the Millennial Disruption Index, 71 percent of Millennials would rather go to the dentist than listen to what a bank says; 53 percent don’t think their bank offers anything different than other banks; and 1 in 3 will switch banks in the next 90 days.
Be Where They are, Physically and Digitally
Appealing to Millennials goes beyond mobile-friendly websites and social media interaction, both table stakes.
One in five Millennials no longer uses a laptop, relying exclusively on smartphones and tablets. And smartphones, to no one’s surprise, are attached to Millennials’ hips: 87 percent said their phone never leaves their side and, for 80 percent, it’s the first thing they check in the morning.
However, branches are still valuable. JD Powers research shows 76 percent of 18- to 19-year-old consumers had visited a branch in the past year. Branches also serve as billboards and so does your staff being present in the community.
Ask Their Opinion
Communication is a two-way street, especially for Millennials who have grown up with social media. Ask for their opinions and be prepared to respond to their feedback.
Focus groups, Skype, GoToMeeting and even traditional surveys can be options, Boyer suggested.
