Marketing to Generation Y

The Marketing Blog, Adapting Your Strategy for Generation Y, reveals the importance of coordinating your marketing efforts to cater to the needs of younger members. Individuals within this generation are now becoming key borrowers as they purchase their first vehicles, apply for their first mortgage, and begin their own families. Adapting to the needs and lifestyles of this generation remains not only profitable, but is the basis in the survival of your Credit Union.


Where to Market                                                                                                                                           As we begin to focus our marketing efforts on this large demographic segment, it is routine to focus outward ­ what incentives are they most likely to respond to, which local publications are they reading, what methods of response rank the highest, etc. While these are great areas to focus and should be incorporated into your marketing efforts, let’s view a different perspective.                                                                                                                          

The following image from the Alabama Credit Union League was used by CreditUnions.com (a highly informative website I recommend CU marketers visit often) to illustrate how younger members are initially hearing of Credit Unions. This graph illustrates invaluable information when examined closely.



Place of Work

First, we notice work related referrals do not have as high an impact with Gen Y as with the older age groups. This is not necessarily because Select Employee Groups are losing their impact. The decline results most likely because these younger members are still in and out of ‘jobs’; they have yet to settle on a ‘career’. The trust and loyalty many show for their employers and fellow employees are most likely marginal. Contrary, it is also sufficient to point out nearly a third of new Generation Y members are introduced through work related references, proving continued focus of efforts by this means is beneficial.

Family Recommendations

Family members are referring over half of the members in this demographic range to their Credit Unions. Once young adults step out into the real world, they often realize just how overwhelming it can be. Falling back to those they trust, family becomes a large determinate of where they take their financial business. This generation segment places a great deal of importance on honesty and trust. When marketing to this segment, do not overlook their parents and relatives. Not only do these groups provide respected advice, they provide a legitimate means for these younger members to join your Credit Union. Focusing marketing efforts on Help-Your-Children promotions geared at their parents vs. Refer-A-Friend campaigns could dramatically improve your response in marketing for Generation Y.

Friendly Referrals                                                                                                                                          It may seem surprising that younger members do not seek a great deal of financial advice from their friends, but when you stop to think about it, the idea does have foundation. When beginning to plan your financial future, we tend to seek advice from those we view as successful, trustworthy, and, most importantly, are comfortable in discussing our personal finances with.

You will notice across every age category, recommendations from friends tend to be one of the lowest referral methods. While Refer-A-Friend campaigns do produce results, other opportunities such as targeting parents may result in higher overall response.

Walk-Ins Welcome                                                                                                                                    Looking at the graph, we notice something very interesting with Generation Y. Their segment maintains the highest new membership rate based on Credit Union branch locations. However, considering that we know Gen Y individuals live by convenience, this makes perfect sense.

It has always surprised me when speaking with Credit Unions how few have incorporated in their software the ability to track their members’ work addresses. No, you will not send mail or anything of the sort to your members’ work, but the ability to plot where your members are working provides one of the most significant means of researching future branch locations.

We often overlook the average commute to work in the US is approximately 25 minutes. If you maintain hours similar to the majority of Credit Unions, your doors are is open the exact same hours your members are at work. How are they supposed to stop by, utilize your in-branch services, and obtain financial advice when you are located 25 minutes away near their homes?

Convenience is key with this generation and while you do offer the technology they desire, do not forget this group seeks answers, financial education, and guidance just as much. By positioning your branch locations in a convenient manner that is relevant to your members' lifestyles, you will experience a greater number of welcomed walk-ins.

Related Article:

Adapting Your Strategy for Generation Y

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