Marketing to Generation Y: All Hype or Really Happening?

Will the t-shirts be here in time for the parade? What is the response rate on that HELOC campaign? Are the commercial lenders really taking those fancy expensive sales sheets with them? We need deposits…should I create a new product or promote an old one?

Sound familiar? I’ll bet so. So where does promotion to Generation Y fit into all of this? We know that they are the wave of the future. We also know that while they are a huge segment of the population, there will be another generation behind them that will create a buzz about something. So let’s speak realistically. In terms of tight budgets and shrinking margins. Are you doing the right things to attract AND KEEP these individuals?

Before we talk about what you should be doing, let’s take a quick survey of the things you are currently doing. And forget about a specific generation and let’s talk age groups.

1. We know that most High School students go to college. Are you doing things to attract these high school students, and if so, are the tools in place to keep them (read: make it easy to bank with you from their dorm room)? With all of the financial literacy programs out there, I am sure you can find a creative way to establish those accounts (through the parents perhaps) and implement the necessary tools (online banking, ATM networks, credit cards, etc.) to keep them through their collegiate years. Ideally, you will think long term enough that keeping these students WELL PAST their bachelor degree will be the norm!
2. Have a high school student audit your website and take stock in their feedback. With younger generations, your website will make or break you.
3. Don’t talk down to them in their own language. Sound a little odd? Let me explain. Regardless of what you read in a text message, Gen Y speaks English. Texting is a tool they use to communicate with each other quickly. But they have respect for those whom respect them. Just because you know sign language or Morse Code doesn’t mean it is appropriate to communicate in that way.

You know where you currently stand and how you stack up. At this point, your mind should be racing. Full of new ideas to segment your existing customers, attract new (young) customers, and a few thoughts on how you should update your website.

We have identified some really easy ways to make sure you are in touch with REALITY. This generational marketing stuff is really happening. People of all ages are demanding new and creative ways to do their banking. Not long ago, those banks that offered “mobile banking” provided a courier service to their customers. Now mobile banking means text banking from a cell phone.

You know that the world of technology is evolving faster than I can write this article and marketing is playing a pivotal role in all of it. If I had said five years ago that you should be thinking about podcasting, blogging and creating a Wikipedia entry, you would have thought I talking about some new science fiction novel.

So, why should you care about Generation Y? You should care because they represent somewhere between 76 and 80 MILLION individuals. Think about this…4 million new people will be driving every year through 2010. That’s only about a year and a half away. Do you offer car-buying programs for teens? Maybe you should. Start them early…kids think about saving for a car at a much younger age than we did!

We also know that 93% of 21-year olds carry a credit card. In 2006, that percentage was only 60%. I can share statistics all day long but the reality is that of the teens that save money, 72% use a piggy bank or other container. And to reference the car-buying point, of those teens that do save, a third of them are saving to buy a car. What are you doing to help them? This is not the “if you build it, they will come” generation. They are the “what’s in it for me” generation.

I think you recognize that you need to reach this CRITICALLY IMPORTANT generation. Here are four references, quick tips, and cost effective ways to reach out to Generation Y.

• Start blogging. Those who do it well will reap HUGE rewards. Generally speaking, establishing a blog is free. Here are two examples of financial institution blogs. The first is an example of a free blog. The second is still free, except for the paid spokesperson!

Free: http://blog.wellsfargo.com/

Not as Free: http://www.youngfree.ca/blog/

What should you blog? EVERYTHING! If you would write it in a brochure, answer the question on the phone, publish a press release, put it on your website or tell your great aunt Geneva’s great granddaughter Sophia about it…you should blog it.

• Podcasting. What is a podcast? Contrary to popular belief, it has nothing to do with an iPod. Podcasting is a digital media file that is distributed over the internet using syndication feeds for playback on portable media players and personal computers. It’s like the new version of Leave it to Beaver. The network knew that there were large masses of people who would benefit from the program, so using syndication feeds (networks like TVLand and Nickelodeon) they can provide the program for playback on televisions all over the world. Maybe you should call me for more explanation on that one. Here are two examples of Podcasting. Again, not expensive, but not exactly free either.

http://www.bankofnevada.com/podcast/index.cfm

https://insightfinancialcu.com/toolsResources_podcasts.aspx

There is a code of conduct that you need to follow when podcasting…for example, never, ever, ever try and sell something in your podcast.

• Email marketing. It’s not hard. That’s how you got this article!
• Social networking. While this is not for everyone, it is free. We highly recommend taking a good look at social medial avenues and develop a policy that addresses who, how, and when the network will be used. There are many social networks online to choose from, and here are examples for a few of our favorites.

MySpace: http://profile.myspace.com/index.cfm?fuseaction=user.viewprofile&friendid=179443351

Facebook: http://www.facebook.com/apps/application.php?id=6341055734&ref=s

So, as you can see, reaching out to Generation Y doesn’t have to be complicated. You don’t have to speak a different language and you don’t have to invest a bunch of money in equipment, software or resources to make it happen.

MarketMatch has completed a tremendous amount of research to better understand generational marketing and how to reach out them. You should also know that generational marketing doesn’t start and stop with Gen Y. Have you thought about the Baby Boomers? They are starting to retire and are thinking about how to make sure their kids (Generation X) will be taken care of. Where do you fit in?