Here’s How Credit Unions Should Target Millennials

The term “millennial marketing” is often touted across numerous industries in an effort to better understand a generation that’s growing in many ways. It’s critical for credit unions to evaluate how to market to the largest generation in the U.S. workforce. But who are they, and what do they want?

The Pew Research Center defines millennials as people born between 1981 and 1996. They’re often described by choice buzzwords: Technology-driven, entrepreneur, community-focused, entitled, coddled and lazy, among many others. Crafting messaging that resonates with this group can be confusing for financial institutions of all sizes. However, there are a plethora of ways credit unions can rethink their approach to meeting the expectations of millennials. Credit unions can develop more effective millennial marketing strategies by understanding some of the defining characteristics of today’s largest living generation.

Become a Conscious Capitalist

Millennials take conscious capitalism into account with every monetary decision, including who they decide to bank with. Conscious capitalism operates under the notion that businesses must serve the environment and their surrounding communities. Across all industries, institutions that make an impact beyond their bottom line gain the most attention. Regardless of the initiative or donation amount, if your credit union participates in philanthropic events around the local community, make sure that message is heard by the right ears.

Understand Their Pain Points

One top-of-mind concern for many millennials is student loan debt. Nearly half of millennials have a student loan, which has prevented many of these individuals from saving for retirement, buying a house or a car, or even getting the health care they needed, according to a survey conducted by AARP and the Association of Young Americans. Between student loans, car loans, credit card debt and other debts, Northwestern Mutual’s 2018 Planning and Progress study found that millennials between the ages of 25 and 34 have an average of $42,000 in debt each. As these young business leaders apply for personal and commercial loans, utilize your marketing collateral to detail the life of a loan and the requirements to gain approval. Explain how their student loans and other debts impact individual credit profiles, and the proper documentation required for credit unions to analyze credit risk and come to a sound credit decision. It’s important to show your millennial market that your credit union understands the scope of their financial situation, and that it is prepared to be a resource and ally for their financial goals.

Leverage Advertising Technology and Target on Social Media

As technology becomes customary rather than simply convenient in their everyday lives, millennials are increasingly turning to their phones for an online banking experience. Whether it’s for tasks as simple as transferring funds across accounts or applying for a loan entirely online, a web presence is non-negotiable for all credit unions. In fact, millennials are three times more likely to open a new account with a phone than in person. Small gestures like offering the option for borrowers to upload documents onto a secure portal and sign with an electronic signature to speed up the loan decisioning process will increase user satisfaction and play an important role in the decision process for members searching for the right credit union.

Furthermore, how is your credit union’s messaging reaching your millennial audience? It’s time to unlock the power of digital advertising to target content toward the right screens. According to the 2018 Nielsen CMO Report, only 21% of marketers deemed print channels effective. If your credit union is only utilizing print or direct mail campaigns, it might be time to reevaluate the strategy. Utilize platforms such as Google AdWords or Bing Ads to hyper-target potential borrowers by keywords, location, income and previous browsing habits right on their smartphone, tablet or laptop. According to the ABA report, 77% of millennials say their mobile phone is always with them. For institutions with a social media presence, use LinkedIn or Facebook Ad Manager’s audience targeting to tailor messages to social media profiles right in millennials’ pockets.

Humanize the Banking Process

One advantage credit unions continue to have over big banks is their ability to build personal relationships between lenders and borrowers. While millennials expect an online banking interface that is easy to navigate, it’s still important to remember names and personalize each lending approval process based on the specific needs of the borrower. According to Deloitte, millennials value high-quality frontline staff interactions. Perhaps the most fundamental way credit unions can improve service to millennials is by humanizing the member experience with a friendly greeting and attentive representatives – whether it’s on the phone, in person or online.

As consumers, millennials like to see themselves in the media that they engage with. This trend is no different when it comes to your credit union. The adage “show don’t tell” applies here. Rather than writing a text-heavy newsletter or email campaign featuring stock images of people smiling or shaking hands, instead include a picture of a happy account holder from your financial institution or perhaps a high-performing employee. Show members that your credit union is made up of members like them, and is not only dedicated to supporting the financial health of the community but of every member.

Joseph Lowe is Product Marketing Manager for Sageworks. He can be reached at 984-242-2802 or joseph.lowe@sageworks.com.