How to Win Over Gen Y

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 number
of 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
80
Millennial
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
Experiences
40%
Life Event
20%
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?
2.5
MONTHS
>6
MONTHS
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

Consumers Prefer You For Your Service
2out of 3 Consumers
Prefer to Bank Locally
Source: Consumer Banking Insights Study 2015

Of Millennials Say The
Ability to Bank In Person
Is An Important Factor
When Choosing An FI
88%

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
s
40%
Life Event
20%

Share Growth
MarketShare
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 McCrary
Executive Strategist, BancVue
Jody.McCrary@BancVue.com
Thank You!

How to Win Over Gen Y

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