Mining Millennial Data

1. What works best when marketing to millennials, those born between 1981 and 2005?

“Focusing on inter-generational marketing messages has worked for our CU,” says Catharine Downes, VP/marketing for $4.5 billion BlueShore Financial Credit Union, Vancouver, British Columbia. “We conduct educational seminars, create online articles and advice videos focusing on topics relevant to millennials, targeted by age – such as entering the housing market, the value of a financial advisor and options for long-term retirement savings.”

“They want and need this financial education,” adds Sue Rising, VP/marketing for $3.6 billion Members 1st Federal Credit Union, Mechanicsburg, Pa. “As a CU, we need to be there for them so they can make wise financial decisions.”

According to Jeff Rosenbeck, leader/enterprise analytics and business intelligence at CUES Supplier Member PSCU, St. Petersburg, Fla., millennials tend to prefer debit over credit, yet utilize their credit cards not unlike the overall card base. “The notion of millennials being ‘debt averse’ could simply be a function of credit unions underwriting lower lines to this segment, which, if resolved, could present a real opportunity.”  

CUES member John Haggarty, VP/marketing for $2.4 billion Provident Credit Union, Redwood Shores, Calif., sees millennial data continuing to segment into two subsets: mature millennials, for example, those looking to buy homes, and younger millennials, those heading off to or just graduating from college.

Further research suggests that these younger millennials may be more apt to change financial institutions as well, which can be a double-edged sword – offering more potential to a CU for growth but also making it susceptible to member attrition.

• From Jim Marou’s 2016 Digital Banking Report, The Millennial Mind. : “The younger spectrum of the millennial segment has greater financial provider attrition than older millennials, which is not unusual since younger consumers are more transient and more demanding and unforgiving than other consumer segments. The younger millennials are also more likely to choose mobile as opposed to using a desktop as a channel of interaction with their financial institution.”

2. What’s most surprising?

“We find millennials either want to do everything via mobile for transactions, or, (contrary to national studies), they want to come into the office and learn,” offers Rising. “They don’t want to talk on the phone with us. They would rather come in personally and discuss concerns or questions.”

3. How can you use data to better attract and serve millennials?

Downes stresses that “like any segment, it’s about knowing and meeting their needs. Also remember that this segment relies heavily on family and friends to aid in their financial decisions, so building on deep relationships with extended family members and providing inter-generational solutions, are natural ways to attract and retain more millennials.”

“It’s just as important to build trust and understanding with millennials as it is with any other segment,” reiterates Rising. “For example, at our CU, we’ve created ‘how-to’ videos to address their financial education needs, and we conduct diverse yet timely seminars to foster these relationships.”

• From the 2015 First Data White Paper on Millennials: Given the anxiety millennials associate with managing money, brands should seize the opportunity to be their hero in providing all the answers customers’ partner in navigating toward a solution—a state of empowerment—rather than being their hero in providing all the answers.

“Millennials are also very product focused,” adds Haggarty. “They expect their financial institution to offer certain products, like P2P.”

Stephanie Schwenn Sebring established and managed the marketing departments for three CUs and served in mentorship roles before launching her business. As owner of Fab Prose & Professional Writing, she assists CUs, industry suppliers and any company wanting great content and a clear brand voice. Follow her on Twitter @fabprose.