The oldest millennials are now in their late 30s, yet many financial institutions still struggle to market to them effectively. Pew Research defines millennials as those born between 1985 and 1996, comprising about 22% of the population or over 80 million people, with a spending power exceeding $200 billion. This makes millennials a significant market force.
What Do Millennials Want from Banks?
Marketing financial services to millennials remains a hot topic of debate, as many banks continue to focus on baby boomers or skip this generation to target Generation Z instead.
Millennials often face financial challenges, including debt and a strong desire to save after the 2008 financial crisis. They are increasingly securing good jobs and investing in housing, savings, and travel. Marketing to millennials is less about perfect features and more about emotional appeal, trust, and making the right services available in the right way.
Understanding millennials’ banking habits and preferences is key to shaping effective marketing strategies.
6 Strategies to Master Marketing Financial Services to Millennials
1. Embrace Digital Platforms
Millennials may not be the digital generation, but many are online constantly. With high demand for digital services, it’s crucial to establish a strong digital presence. Millennials seek digital banking services, debt management, and comprehensive financial apps to avoid in-person bank visits. For instance, a study by Gernalto revealed that only 27% of millennials have never visited a bank branch, and 18% are smartphone-only internet users. They also make up about 43% of mobile banking users and prefer online chat or chatbots over human interaction. Offering online chat or robust self-help solutions can help them make decisions without needing customer support. Additionally, allowing online account sign-ups and giving customers control over their interactions with the bank can enhance their experience.
2. Build Relationships, Not Sales
Relationship marketing involves building trust and providing real value through customer contact and outreach. Innovative connections through social media, apps, and consistent customer service are vital. Instead of starting with a hard sales pitch, use community outreach programs to offer value through free workshops on savings or debt management. Once you establish a connection, follow up with product or service pitches. Understanding customer needs helps tailor offerings effectively. Utilize platforms like Facebook Live, email, chat, and social media to build relationships and focus on providing consistent value, even if it means recommending more affordable options.
3. Focus on Debt Control and Payoff**
Many millennials struggle with debt, having entered the job market during the financial crisis and dealing with significant student debt. Marketing campaigns around debt management, savings, and wealth management can address their concerns. A study found that 46% of millennials felt they had too much debt and sought solutions for managing and reducing it.
4. Appeal to Emotions
Millennials are the most brand-loyal generation, and emotional connections can enhance this loyalty. They often prioritize doing good and investing in others over personal wealth accumulation. Financial marketing strategies should focus on goals like saving for children, family, or charity. Understanding millennial interests and concerns, such as student debt, mortgages, budgeting, and money management, helps create relevant content.
5. Use Social Media Storytelling
Social media is a crucial marketing channel, especially for millennials. Platforms like LinkedIn are popular for financial discussions. A TD Bank study showed that 59% of millennials seek personal advice on savings, budgeting, and credit cards through social media or chat. Offering personalized advice, workshops, or consultations via social media can build relationships. Sharing stories and advice, and helping millennials reach their goals, can make social media a valuable tool for customer acquisition and retention.
6. Create a Trustworthy Brand
Millennials seek brands they can trust with their data and money. Building trust through personalized service is essential, despite their preference for self-service and online chat. Honesty and personalized offerings, such as unbundled services or custom service bundles, can build loyalty. Being upfront about fees, waiving service charges, and offering custom solutions through automation or representatives can enhance trust. Retaining millennial customers is crucial, as they are the most likely to switch banks. Authentic and genuine services, along with a brand that upholds its values, resonate with millennials.
Deliver Personalized Financial Education
Offer personalized financial education programs with a mobile-first platform. EVERFI provides a fully white-labeled learning platform with engaging content and interactive exercises, offering valuable insights into consumer interests. This allows for tailored financial education relevant to their life stage and goals.
