Perhaps it’s the unmatched technology with which millennials have grown up. Or their unique language, ways of interacting, and attitudes. The largest and most diverse generation are avid borrowers, accessible, loyal, and influential. Consider the following statistics:
- Younger respondents are substantially more likely to apply for a credit card. Twenty-five percent of those between the ages of 18-34 have submitted an application in the previous month, yet only 16 percent of those aged 35-54, and 8 percent over 55 years of age have also applied. (CompereMedia)
- Fifty percent of the loan demand in 2017 was generated by millennials. (Raddon Financial Group)
- The need for lending will only grow. As they start families, buy homes, cars, and perhaps additional education, they will need to form relationships with the financial institution of their choice.
Whatever the reason, one thing is very clear: millennials are shaping the future of financial services, which is why it’s more important than ever for your institution to capture these new account holders.
Here are five ways you can market (like a boss) and begin building meaningful, mutually beneficial, lifetime relationships with millennials:
Tip #1: Counsel (like a Boss)
Not only do millennials need financial advice, they want to hear it from their financial institutions. Thirty percent of millennials value recommendations from their financial institution (this is nearly double the amount of boomers and Gen Xers who value banking advice).
Tip #2: Connect (like a Boss)
As the largest living generation (75.4 million in the United States), millennials represent the next potential heavy users of financial services and instruments. This is prompting financial institutions to develop products and services that speak directly to millennials’ needs. Millennials’ social influence and digital connectivity raise the stakes for brands looking to capture their attention.
Tip #3: Channel (Like a Boss)
Millennials do respond to direct mail. It just so happens, 90 percent of tech-savvy millennials think direct mail advertising is reliable, and 57 percent have made purchases based on direct mail offers.
Tip #4: Target (like a Boss)
Millennials are the first generation to have access to loan opportunities 24 hours a day, 7 days a week – and they are taking full advantage. Millennials are borrowing for college education, averaging $25.5K in student loan debt, and they account for 68 percent of first-time home buyers. Smart marketers cash in on the importance of generational segmentation based on references, attitudes, and upbringings.
Tip #5: Reward (like a Boss)
A significant number of millennials open new credit card accounts to take advantage of initial short-term incentives like discounts, cash back and free airline miles. Forty-one percent use their credit cards as often as possible to maximize reward points.
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