By Rhiannon Stone
In 2016, Millennials surpassed Baby Boomers as the largest generation in the U.S. The number of people in the 18-34 age group is now more than 75 million. With such a large group entering adulthood and beginning to make their first big financial decisions — including which financial institutions they will use — it is imperative that credit unions position themselves for this opportunity.
While we have all seen countless online articles on “marketing to millennials,” as credit unions we must go beyond the clickbait and delve into a deeper understanding of our younger members’ motivations and thought processes. Simply getting the attention of our younger members is not enough — we must also consider how to keep them engaged and satisfied with our credit unions.
First, we must adapt to the latest trends in technology quickly. Technology is evolving constantly, and not only do we have to compete with big banks for millennials’ attention, but also ubiquitous fintech startups. When adopting new technology, the key consideration for younger members is convenience. To this end, your online and mobile platforms should be streamlined and easy to use. You are more likely to keep younger members by providing applications that are straightforward, intuitive and free of glitches. Furthermore, technology should serve as the main tool to communicate information about your credit union’s products and services. Consider a chatbot or other AI software program that can answer questions in real time and help younger members make the best financial decisions. Younger members want to make educated decisions before committing — let them know what your credit union has to offer.
Overcoming the Noise
In communicating with millennials, consider how they communicate with each other. With an ever-decreasing attention span, this younger demographic wants direct, concise communication. They also require communication on the channels on which they are most active. Consider your social presence —when was the last time you posted on your Facebook or Twitter account? With so much noise online, it is important to cut through the clutter with helpful information via a succinct message and call to action.
Another strategy that is increasingly popular for engaging younger members is gamification. In gamification, game playing qualities — think: scoring points, competing with others — are added to other activities. Gamification taps into the desire to accomplish a goal and be recognized and rewarded. In the financial space, gamification can be used in a variety of ways, including financial literacy. For example, your credit union’s website can offer game-like simulations for money management and budgeting. Gamification can also be used for incentivization, e.g., giving members the chance to earn points or badges toward a reward for making a loan payment on time or depositing funds into their savings account.
No One-Size-Fits-All Solution
Finally, we can reach our younger members by helping them achieve financial independence. Although the stereotype of the 25-year-old living in their parents’ basement may not be completely accurate, the reality is that younger members today face many financial concerns, coupled with an increased skepticism of our industry because of the not-so-distant recession. However, like the generations before them, millennials crave independence. As credit unions, we can assist them in achieving this goal by helping them navigate major financial decisions like their first auto loan or down payment on a home.
There’s no one-size-fits-all solution for attracting and retaining younger members. This group is the most diverse generation the world has ever known. However, we can gain an understanding of their motivations and concerns and help them secure a successful financial future.
Rhiannon Stone is vice president of solutions delivery at EPL, Inc., Birmingham, Ala.