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Tagged: gen y

4 Questions to Ask When Appealing to Millennial Customers

April 10, 2017

Millennials may access customer service in new ways, but many of their priorities remain the same as previous generations.

Millennials may access customer service in new ways, but many of their priorities remain the same as previous generations.

Millennials are taking over the world—literally. As of April 2016, Millennials have edged out Baby Boomers as the largest generation in America. That means Millennials are a driving force behind modern evolutions in customer experience.

The largest, most diverse, most educated generation of Americans to date have incredible spending power. Their familiarity with and reliance on technology defines the Millennial experience and means major changes for businesses and brands looking to court their loyalty.

So how can you become a favorite among Millennial customers?

Millennials still want reliability, friendliness, responsiveness, and quality – they just want even more of it than previous generations were satisfied to have.

No generation before has seen such a rapid progression and diversification of technology. While older Millennials still remember the dial-up days, the younger set are coming of age in a time of ubiquitous and instant availability of favorite resources and channels. Millennials see technology as a lifestyle, not a toolbox.  

If you’re looking to strengthen your appeal to Millennials, your business should embrace a similar mindset. Your business already uses technology to communicate quickly and efficiently. The next step is to embrace the wide variety of apps, devices, and networks that make your brand easy to access and share. The following questions are a good way to gauge if your business is ready to attract Millennial consumers.

IS IT FAST?

Millennials know what they want, and they want it now. Influenced by their always-available, multi-tasking, multi-device lifestyles, their attention span is rather short. Millennials have little patience for clumsy user interfaces or apps that struggle to load. They don’t want to wait for answers! They make decisions quickly and will gravitate to businesses that help them accelerate their progress.

IS IT SOCIAL?

Millennials are always connected to the Internet and therefore, always connected to each other. Businesses quickly realized that the key to engaging Millennial markets is to connect via social media.

Millennials begrudgingly accept the presence of brands and businesses in their social networks, but they expect businesses to behave socially. Personal interactions with businesses make them feel heard and valued.

Rather than picking up a phone, Millennials favor direct Tweets, Yelp reviews, and Facebook posts to describe their experience with a business. An active social media presence demonstrates your business’ willingness to personally connect with customers and keeps your brand fresh in someone’s news feed. 

IS IT MEANINGFUL?

Millennials maintain a heightened awareness of social issues and causes. They’re not interested in money for the sake of money—they want their dollar to mean something when they spend it. Consequently, businesses that include an element of social justice in their work are more likely to successfully engage Millennials.

IS IT AUTONOMOUS?

Millennials are self-starters. They want to feel empowered by their business interactions. Many customer experience disruptions come from Millennials as they initiated their own startups to fill niches not served by the existing market. They’re not content to say: “This is the way things have always been done.” 

This generation saw the birth of “crowdsourcing and online reviews as a significant influencer on purchasing decisions. Conversely, Millennials also value the availability of self-service options, especially those that get them to their destination faster by cutting out the middleman. They’re not opposed to picking up the phone or having a face-to-face customer service interaction, but it’s usually not their first choice. In fact, they may snub a business that doesn’t give them enough opportunity to help themselves.  

Brands Millennials Love

Venmo and other P2P (person to person) payment apps are a recent example of the way Millennials prefer to handle their finances. Venmo provides a slick, no-hassle interface, connects users directly to social networks, and is completely autonomous. Venmo has also partnered with GiveDirectly to make it easier than ever for users to donate to their favorite charity. 

TOMS Shoes is another good example of a brand that successfully engages Millennial markets. Their “One for One” campaign elevated an ordinary purchase of new shoes to an act of goodwill. TOMS also has a strong social media presence. They encourage customers to share stories and make them feel like they’re a part of the TOMS mission to improve the lives of others. 

 

These new insights into Millennial habits in combination with your own Voice of the Customer research will create a customer experience tailored to Millennial demands. In Part Two of this series, we review the areas of the experience to prioritize and provide examples of specific actions to take and offerings to consider when engaging this desirable demographic.

What Baby Boomer & Millennial Banking Customers Have in Common

July 30, 2015

Though born decades apart and into very different circumstances, Baby Boomer (born 1946-1964) and Millennial (born 1980-2000) customers show a surprising amount of overlap in their preferences and priorities for the customer experience at their banks.

Baby Boomers are Aging Youthfully

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Baby Boomers came of age during the wild 1960s and 70s, and while they might not be able to rock’n’roll all night and party every day anymore, they’re not ready to resign to their rocking chairs just yet.

Here you can begin to see some of the commonalities between Boomers and Millennials. Both generations entered adulthood against the backdrop of oversea war, economic depression, and social unrest. The 2008 recession hit their wallets hard: Boomers watched their retirement funds wither, and Millennials worry if they’ll earn enough to pay off their immense student loans. To varying degrees, both groups know the value of doing more with less and balancing their desire to make purchases against the risks of running out.

It’s Not Just About Retirement

Sure, retirement is a pressing issue for Boomers exiting the workforce and preparing for a new phase of life, but it’s not the only thing they’re doing with their money.

Despite the setbacks of the recession, Baby Boomers earn about 47% of all income in the United States, totaling $4 trillion. [Source] With their adult children leaving home and establishing their own families, instead of settling in, Boomers are active and adventurous. They want to be able to keep up with their grandkids and are using their spending power to catch up with all the dreams they may have put off during their parenting years.

That might mean new car purchases, home renovations or relocations, or even starting a business – all things they’ll be looking to their banks to help them finance and navigate. These products aren’t just the territory of young adults getting established.

As we’ve reported previously, Millennials, too, are entrepreneurial adventurers who tend to value experiences over material goods. So while they may be renting a while longer before they purchase a house and putting off traditional milestones like marriage and child-rearing, they see that as freeing up capital to pursue their dreams while they still have youth on their side.

They’ve also absorbed their parents’ concerns about funding their retirements and, according to the Transamerica Retirement Survey, 74% of Millennials have begun saving for retirement a full 13 years earlier in life than Baby Boomers.

This knowledge should lead banks to carefully consider how and to whom they are promoting their small business, retirement, and home equity products and services.

Linked In with Technology

A major slice of shared territory between these two generations can be found online, and in particular, on mobile.

Millennials and Boomers alike are early adopters of new tech products and are comfortable navigating the world through the lens of their smartphone or tablet. 71% of Boomers bank online at least once per week, and their use of mobile is expected grow exponentially over the next few years.

So by prioritizing a streamlined, personalized, and mobile-optimized experience, banks can satisfy both sets of customers.

Where they differ, though, is in their concern about the security of their financial information. Millennials, who have largely grown up with tech, tend to be more trusting; Boomers are willing to adapt and learn, but remain suspicious about the trustworthiness of devices, networks, and data banks.

61% of Boomers believe the risk of their financial data being compromised will rise within the next three years, compared to 45% of Millennials. [Source] Adults who are not already using online banking options are even more suspicious and unlikely to be converted, no matter how slick the user experience. Nothing will send customers of any age on the hunt for a new bank like finding that their personal information is at risk, for which they unforgivingly hold the institution responsible.

With data breaches making headlines on a regular basis, banks who want to promote their online and mobile services must communicate a strong message of security, not just convenience.

Want to know more about the demands of different demographics within your target market? CSP can deliver all the intelligence you need and offer solutions to meet your specific goals. Contact us today with your questions and concerns.

4 Ways to Engage the Millennial Banking Customer

June 17, 2015

millennial customer engagement

Millennials want businesses to meet them where they are, and that includes their financial institutions. So how does a bank go about satisfying this demanding demographic?

In Part One of this series, we got into Millennials’ heads to see the world through their own lenses. Knowing what they value and prioritize can help you shape the customer experience to meet their ever-evolving expectations.

Appeal to their impatience.

Speed of service, whether online or human-to-human, is a must.

If a customer needs to get in touch with you to ask a question or resolve a problem, he’d rather open up a web chat or send a Tweet than be put on hold with a call center or wait for a response from the Contact Us form on your website. And if he does Tweet you a question, he expects you to answer it as promptly as he expects a friend to reply to his text.

He doesn’t want to be beholden to “business hours,” either – in his world, answers are always a click away, day or night. If 24/7 customer service is not something you can promise, at the very least, he should have the option to find his own answers through the resources you make available to him online, like FAQ pages, blogs and articles, or forums.

He’ll also appreciate a degree of automation to processes that would otherwise be tedious or require multiple steps and the intervention of a human employee. Take, for instance, mobile check deposit, or peer-to-peer payment, two innovations that streamline simple financial interactions into a matter of clicks, no middleman required.

Give them control.

Automation and self-service aren’t just about getting from Point A to Point B as quickly as possible; they allow customers to self-determine their customer journey and customize it to meet their own unique needs, rather than be lumped in with the generalized population of your customer base.

Personalization is important to this highly individualistic customer. Jane Q. Millennial doesn’t just want the Fifth Third experience, she wants Jane’s Fifth Third experience. Each channel she uses, digital or human, should greet her by name and anticipate her needs before she even has to state them.

Millennials personify the omnichannel customer experience. Take advantage of the Voice of the Customer insights and transactional data you’ve collected on them to craft personalized and intuitive experiences.

Participate, and invite participation.

Tap into the Millennial customer’s social side by engaging with him, not just broadcasting to him. We won’t claim that it’s easy, but you’ll have to reconcile traditional customer service language and behavior with his native tongue. Show personality in your communications, demonstrate social values that align with his own, and he’ll find you more approachable than the out-of-the box Customer Service Rep™.

Give him opportunities to engage with you beyond the standard problem/solution model of service. Social media is an excellent platform for conducting (completely non-scientific) surveys or hosting contests. You can blend information and entertainment with things like “Did You Know?” trivia or “Caption This” contests for funny images. The prize might be as simple as public recognition of the winner’s cleverness, but that’s still more than he was likely expecting to get when he logged on today.

Be their entrepreneurial ally.

In the past, banks might have targeted the 18 to 35 demographic with messaging around financing their homes, cars, and children’s college educations. But Millennials are famously delaying typical young-adult milestones like marriage and home ownership in favor of pursuing their dreams, creating the perfect opportunity for financial institutions to step in as allies, coaches, and incubators. Make them aware of both consumer and business products.

Consider hosting workshops for start-ups or the self-employed; offering sponsorships, grant opportunities, or other competitive rewards; or coaching them on career advancement or salary negotiation via your blog (you are blogging, right?). Seek out the places in your community where these young entrepreneurs are gathering, like TED Talks, networking groups, and even street fairs, and make sure you have a visible presence there. Think about it: how cool could it be to have a reputation as THE bank that young self-starters turn to?

While we’re on the topic of business products, consider this: Even if your business customers aren’t run by Millennials, they’re certainly employing them. The person responsible for managing banking interactions at any given business, start-up or established, might be a 28-year-old man or woman, who expects your B2B experience to be as modern, flexible, and streamlined as your consumer-facing experience.

 

So, how does your customer experience measure up against the Millennial mindset? By this point of reading, you’re either patting yourself on the back for a job well done, or you have new insights into potential areas of improvement and innovation.

CSP is passionate about improving the customer experience for customers of all ages. Read about our solutions and services, and contact us when you’re ready to take the next step.