Who are millennials? That depends on who you ask, but generally they are classified as those born between 1977-1995. Currently, this group makes up approximately 24% of the population, they are heavy users of social media, are more diverse than any previous generation, make an average annual salary of $48k, and require hyper personalization from the companies they buy from. By the year 2025 75% of the working class will be Millennials. With this growing segment of workers it’s no secret that this group of people are top of mind for many industries including credit unions and banks.
So, as a lender how do you attract millennials to your institution? In September 2014 CU Journal wrote an article labeled “Could Millennials Finally Find a Home in CUs?”. The article gave several examples of credit unions who are targeting millennials through first time home buyer products, using education both online and in branches as their primary marketing tool. With the real estate market still rebounding from the recession this seems natural that lenders would take the opportunity to attract millennials through first time mortgage products. But mortgage products aren’t the only financial products that millennials are using. Student loans, auto loans, and credit cards are also popular products among millennials. The trick to attracting millenials with any of these products is targeting them at the right time with the product to fit their need. This is where hyper personalization comes in.
Hyper personalization simply means using data to create personalized products, services, and content. Personalizing to this extent can only be done when you truly understand your customers. You’ll know you’re on the right track when you know most of the following about your customer:
- Demographics (gender, age range, household income, education level)
- Common challenges in their stage of life
- What variables are correlated with moving to a new stage of life i.e.( wedding, graduation, etc.)
- History of loan products owned
- Delinquency history
- Preferred communication method (email, social media, phone, branch, etc.)
- Search mannerisms (keywords, where they go for product advice (Facebook, Twitter, Blogs, Forums, etc.)
- Typical day of customer
As you compile your own data on your customers the statistics on millennials below might be useful to help guide your thinking as to how to personalize your relationship with them even further.
- 21% of millennials are married compared with 42% of baby boomers.
- 69% of millennials share with their peers information about causes they care about. Such causes typically consist of education, poverty, and the environment
- 62% of millennials prefer to live in mixed-use communities in urban areas.
- 36% of millennials rely on financial support from their parents.
- 39% of millennials are still in school.
- Millennials are more highly concentrated on the west coast.
As usual, we are committed to helping you better understand your customer’s needs and attract millennials at the right time. In an effort to do this we are compiling data and trends on millennials from Visible Equity’s data that we will be releasing shortly.
Not sure how to identify correlations in your customers? Get our free guide on targeting the right customers at the right time.