how to win over gen y

https://www.youtube.com/watch?v=dZP-owj7flQ

https://www.youtube.com/watch?v=dZP-owj7flQ


Who Are You Banking Today?


Who Are Millennials (aka Gen Y)?

Came of age with the Internet,

mobile devices, and

ubiquitous social media

66% have a

checking account

Spend $2 Trillion Annually

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 numberof college graduates ever

– twice as many degrees conferred in 2009 as in 1970

Only 33%have a credit card

Currently ages 19 – 37

Record breaking study loan debt

Number around 79.8 million


Why Are They Important?Millennials to pass up Boomers this year

Millennials number around 79.8 million 16.5% (13,167,000) of population

available annual via switchers and first timers

2014 2028 2036 2050

0

20

40

60

80Millennial

Gen X

Boomer

Mature

81

65

75

66

29

Source: Pew Research Center tabulations of U.S.

Census Bureau population projections release Dec. 2014


What Makes Them Switch?

13.25%

15.88%

Marketing & Advertising

40%Negative

Experiences40%

Life Event20%

Source: Making The Switch. AOL Study, 2015

• Life Event (Moving, Marriage/Divorce)

• Negative Experiences

• Marketing & Advertising


Average time between wanting

a new account and switching

90%

When Do They Decide?

2.5MONTHS

>6MONTHS

And 22% of

switchers spend



What Are The Reasons Consumers Don’t

Switch?

The number one reason (58%) people don’t end up switching banks, is

that they feel they are the same, i.e. lack of differentiation.

21%

40%

58%

Haven't found a better bank

Too much of a hassle

Lack of differentiation



Massive Resources & Marketing Budgets


How to make Gen Y consider Your Bank?

Innovative

Products

Marketing

Strategy

Customer

Service

2 31


“All the sophistication of the big

banks and their cool systems,

with all the warmth and

familiarity of the local bank.”

- Millennial

The Financial Brand

1. CUSTOMER SERVICE


Consumers Prefer You For Your Service

2 out of 3 Consumers

Prefer to Bank Locally

Source: Consumer Banking Insights Study 2015

© 2015 BancVue. All rights reserved. Not for distribution.Source: Consumer Banking Insights Study 2015

Of Millennials Say The

Ability to Bank In Person

Is An Important Factor

When Choosing An FI

88%

2. INNOVATIVE PRODUCTS


Research Insights: Consumer Preference

It’s 1993 and you need a cell phone.

It’s 1993 and you need a checking account.

When Data Is Available,

Consumers Choose

Product First



It’s 2015 and you need a cell phone.

It’s 2015 and you need a checking account.


Consumers Choose

Product First




Consumers Choose

Product First


of Millennials think that product

features are a higher priority than

where they get the products78%


78%


Offer Products That Consumers Want

Free, No Fees High Interest

Rewards Cash Back


More Important to

Millennials2x


If you build it… nope


Who thinks Mega Banks give better service than you?

Do you have the products that consumers want?

Then why does 70% of America bank with the Megas?


They Doubt Your Products & Services

Of Millennials don’t believe you

have the products they need40%“The big banks have

money to invest in

technology and IT

departments and

people...”



Marketing Can Influence…

Doubts

Differentiation

Brand Affinity

Consideration Set


Marketing & Advertising

40%Negative Experience

s40%

Life Event20%

3. MARKETING STRATEGY


Share Growth

Mark

et

Share

Competing as a Challenger Brand

Ex-Champ Market Leader

Underdog Challenger


Rule Number 1: Head to Head is Dangerous!!

Understand their offerings and yours.

Market the value they don’t provide

…or to a segment they don’t care about.

That means aggressively taking your own

position and promoting it.

First promote the great product, later

promote it as an alternative.

Know your competitors before you strike….


Rule Number 2: Focus on a Target

How Millennials Consume Media..

TV/Video Consumption:

• Broadcast TV is equal to Streaming

from free or paid service (40%)

• Streaming digital media projected to

be primary viewing source by 2020

Mobile Devices

• 90% own a smartphone

• 53% own a tablet

Information Gathering

• Prefer to receive product info from

peers (48%)

• Internet advertising is the next

preferred channel (39%)

Segment, know, and love your customers….


Rule Number 3: Get Attention

You have to be different to stand out.

Start with tone and personality.

Market leaders often ignore the

irreverent as a flash in the pan.

Often not seen as a competitive

threat because young challengers

don’t cross the entire value chain

Great challenger brands are eventually remembered for something.


TV


Print


Rule Number 4: Aggressively Displace Product

Aggressive product

displacement is key

Present as a new and different

alternative, not a head on attack

Create internal capability

Being aggressive is important as a challenger but you have to pick wisely…see Rule 1.

40%are driven by ads

88% still go online

searching for the right

product….so be it!!


Rule Number 5: Attack with Scale

Being ignored (by competition)

is good!!!

It can take years for multi-line

market leaders to respond.

When you have scale and target

wisely, you can stretch your

marketing dollar further.

After creating some Reason to Believe in your target segments, it becomes easier to

attack…but you still have to watch out for Rule 1.


Integrated Marketing Plans Drive Awareness


How to make Gen Y consider You?

Innovative

Products

Marketing

Strategy

Customer

Service

2 31

Jody McCraryExecutive Strategist, BancVue

[email protected]

Thank You!