MONTEREY, Calif. — Generation Y doesn't like courtesy pay, doesn't want your text messages, but does want educational print materials, according to focus groups conducted by the California and Nevada Credit Union Leagues'Applied Research Institute think tank.
League Analyst Daniel Penrod, who presented the findings at the Big Valley Conference to a packed house, said what Gen Y wants most is easy access to information and the ability to make decisions on their own terms.
"One participant literally said, 'stop me from spending!' They know they have problems managing their finances, so try to give them the option to bounce or pay the check–they love options," Penrod said.
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The analyst reported that Gen Y is very cynical and savvy when it comes to marketing campaigns and believes products and services should sell themselves. If you have to sell them, you're probably lying.
"Think about what's been in the news during their lives," Penrod said. "There's been so much scandal and exploitation, from their favorite athletes all the way to the president, and those events have shaped who they are."
The presentation drew chuckles with the revelation that Gen Y doesn't think overdrafts are their fault, blaming predatory fee structures instead.
"What they really need is education," Penrod said, "and a lesson that loans and credit cards and not free money. They're an indulged generation, and all they've ever known is 'I want it, I buy it'. Those who have accounts might not even see the statement, if it's a joint account with a parent."
Gen Y relies heavily on baby boomer and Gen X parents for financial advice, preferring to ask parents about finances rather than research it themselves. Penrod went so far as to use credit union Gen Y golden boy, Bryan Sims, as an example. The 24-year-old Sims may be CEO of Brass Media company, but his father is a very visible chief operating officer.
This is good news for credit unions, Penrod said, because all that's required is a modification to existing marketing channels to leverage existing relationships with older members.
Marketing pros hoping for a positive return on investment with Gen Y need to realize they haven't yet reached a profitable life stage. However, efforts now could pay off big later, when they're ready for new cars and mortgages. Educational loans might be a good opportunity, he said.
But please, keep those marketing campaigns dignified.
"You are not hip, and you are not cool, and you never will be, so don't even try to dress or talk like them," he said. "But, that's a good thing, because they want their financial institution to maintain a professional, trustworthy image."
Penrod also shared examples of good and bad Web sites, pointing out that Gen Y prefers bright, splashy colors and photos of people their own age and many ethnicities using the product or service being sold.
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