Millennials are highly sought after in marketing due to their long-term potential as customers. Financial advisors, Cerulli Associates, estimate that millennials have $1.8 trillion in investable assets. Additionally, they are expected to inherit $10 trillion from baby boomer parents in the next 25 years. However, millennials are notoriously difficult to retain and are known for their lack of brand loyalty. A 2019 survey by Data Axle found that while 72% of customers overall aren’t looking to switch financial services, over a third of millennials are considering it. Furthermore, millennials have more options and better access to new products and services than previous generations.
To gain the loyalty of millennial customers, finance brands have had to innovate. They are finding new ways to understand and appeal to millennial customers by recognizing who they are, what they want, and how to make their customer journey as engaging as possible. Below, we explore the most creative strategies financial brands are using to build long-term loyalty with millennials.
1. Offer Perks That Matter to Millennials
Special deals and offers need to be tailored. The Data Axle survey revealed that younger consumers value perks (like travel benefits, food deals, or exclusive experiences) over credit card points. Millennials, who prefer experiences over material goods, prioritize travel and convenience in food choices. For instance, millennials are three times more likely to order takeout than their parents.
Brand Example: Chase Sapphire Reserve Card
Chase caters to millennials by offering up to $750 in travel credit after spending $4,000 in 3 months, along with an annual $300 travel credit. Booking flights directly from the Chase website adds convenience, and partnering with DoorDash to waive delivery fees taps into millennials’ love for takeout. Chase reports that the majority of new Sapphire Reserve customers are millennials, a significant demographic as their wealth is projected to grow rapidly over the next 15 years.
2. Create an Emotional Connection Through Social Media
With 90% of millennials using social media, it’s an excellent platform for brands to engage with their audience. Millennials use social media for customer support, reviews, and to connect over shared values and social justice issues. Brands that reflect their customers’ values are more likely to earn their loyalty.
Brand Example: Wells Fargo
Wells Fargo uses Instagram to connect with millennials by addressing important issues like diversity and social justice. Recent posts include an LGBTQ pride flag and steps to increase workforce diversity, aligning with the values of their millennial audience.
3. Tell a “Human Story”
A 2018 Bank of America survey showed that 73% of respondents were more excited about financial offerings from tech companies than traditional banks. Financial institutions can benefit by adding a personal touch to their advertising and messaging to connect with millennials.
Brand Example: TD Bank
TD Bank’s #TDThanksYou campaign involved an “automated thanking machine” in branches, giving personalized rewards like trips and experiences. The campaign video went viral with over 19 million views, significantly boosting TD Bank’s brand image and loyalty among customers.
4. Double Down on Convenience
Millennials prefer online and mobile services for banking. A survey found that 17% of millennials have never visited a bank branch, and nearly 40% consider a mobile app a top factor in choosing a financial service provider. They prioritize convenience, earning them the nickname “convenience generation.”
Brand Example: Ally Bank
Ally Bank, a digital-only bank, allows customers to handle all their banking needs via their phones, eliminating the need for physical branches and offering maximum convenience.
5. Make Investing Affordable and Mobile
Millennials want to manage their investments easily and on the go. Apps like Acorns, Stash, and Robinhood make investing simple and accessible through mobile platforms.
Brand Example: Acorns
Acorns rounds up users’ purchases to the nearest dollar and invests the difference, appealing to millennials with its ease of use. With over $860 million in valuation and a majority of users aged 18-35, Acorns shows that simplifying investing resonates with millennials.
Other Notable Apps: Stash and Robinhood
Stash offers fractional shares in over 400 stocks, while Robinhood allows users to trade stocks, funds, and options without fees, both catering to millennials’ preference for convenient, affordable investing.
Conclusion
Financial brands need to innovate to capture the attention of millennial consumers. By understanding millennials’ needs and communication styles, brands can craft messages that resonate with this key demographic.
