Attract (and Keep) Members of a Certain Age

Credit unions have focused heavily on wooing millennials in recent years, but with constant efforts to digitize and mobilize everything, they may be turning off baby boomers. Here’s what two experts said they wished credit unions would remember about that 74-million-strong band of Americans aged 55 to 73, plus six things credit unions can do to keep some of that old-school vibe.

Boomers Are the Ultimate Influencers

“There’s a ton of focus on millennials to the point where it does seem like some other generational cohorts are kind of being ignored,” Laura Watson, senior director of client strategy at marketing and advertising firm Merkle, said. That can be a fatal mistake, she warned. Baby boomers will soon pass billions of dollars down to their children and grandchildren over the next several years, giving them considerable power over the next generations’ financial futures. In other words, millennials may be at the epicenter of “influencer culture,” but baby boomers are the influencers of the influencers.

“People who are starting to form their connections with their financial institutions – often the baby boomers are the ones steering them toward their own financial institutions. We know that a lot of kids will follow what their parents are suggesting to do in terms of finances,” Kim Ziehr, who works on the copywriting team at the Madison, Wis.-based credit union marketing firm Image Works, explained.

Boomers Like CU Tech – They Also Like People

Baby boomers aren’t afraid of technology. Data from Pew Research showed 79% of Americans between ages 50 and 64 and 53% of Americans over 65 have a smartphone. Over half (52%) of baby boomers own tablets and 74% have broadband at home.

“Everybody kind of does online research; they look at ratings and reviews, they look at blogs. There’s a ton of demand for digital banking options, and boomers are avid users of Facebook,” Watson explained. “They’re responsive to digital, and their children and their grandchildren are teaching them new ways for everything. Plus, there are a lot more remote families, so just simply staying in touch through FaceTime or video chat is something that is more and more common. The younger generations are actually pulling boomers and older generations through into that digital experience. So, I think there is very much an expectation from all generations, but that has to be part of the offering [to boomers].”

However, a big chunk of older boomers also may not ever use the internet or even have broadband connections in their homes. And many baby boomers still just want on-demand access to a human. That dual demand for digital and analog experiences can be tricky – but it’s also precisely where credit unions shine, Watson said.

“That tends to be a little bit easier for credit unions because they truly do have that personal experience more so than some of the bigger financial institutions that are making great strides through artificial intelligence and marketing automation and so forth. But [big financial institutions] don’t have that true kind of down-home engagement with their customers typically,” she said.

Tips for Becoming (or Staying) a Boomer Magnet

Credit unions have given millennials a lot of attention in recent years, but for some, the pendulum is beginning to swing back toward baby boomers, according to Emilee Schultz, senior national account manager at Image Works. “They’ve realized they’ve neglected them for the past few years, so they’re starting to pick that up again,” she noted. Here are a few ways credit unions can do that:

1. Value video. “For even those [boomers] who are a little more tech savvy, they may not be completely comfortable with online banking. So using video tutorials or even digital banking 101 courses would be a great opportunity for credit unions to collaborate with a local community college,” Watson said. “That would be providing a service and filling a real need that’s out there. Plus, that generates goodwill and PR for the organization as well. So it’s kind of a win-win situation.”

2. Target the ads, but keep them genuine. Credit unions should ensure the offers they make are “from the heart” and can make a difference in the member’s life, Schultz said.

“The offers that they’re providing to these potential members and members – they need to be focusing on personal engagement and really just keeping that message and relevance to them and what they need right now in their financial journey,” she said.

3. Romance refinancing. As boomers age, they’re more likely to think about the bills they’ll need to pay in retirement, including debt service, Ziehr said. “Any way that they can consolidate their debt now or refinance to a lower rate on any current loans they have – that would be a huge opportunity to help them manage their money better.”

4. Watch the imagery. “[Credit unions] really need to be sure that the imagery they’re using is showing active, on-the-go people in this market,” Schultz warned. “They don’t want to appear ‘old’ or ‘older’… I think [credit unions] need to consider that to avoid things that could be construed as possibly patronizing in some way.”

5. Respect simplicity. When it comes to brochures and other printed materials, credit unions should avoid trying to cram everything onto one page, Watson said. “I would just caution not to do what banks tend to always do, which is to try to fit as much information as possible,” she said. “Just make it very simple and digestible; easy-to-follow directions makes it much more consumable as a boomer or as any person who is in the financial services consumption space.”

“Even when you’re designing for mobile digital experiences like the video tutorials that I mentioned, don’t make it a one-size-fits-all,” she added. “Materials that are printed can’t be micro-print … making it really simple is something that applies to everyone, not just boomers. Have type font that is a reasonable size; make it a very mobile-friendly view.”

6. Structure in-person meetings. “Offering workshops or individual financial checkups for boomers I think is really important,” Watson said. “That ‘me’ generation also very much celebrates their individualism and their independence. So helping them ensure that they’re set up for that long term is critical. They’re generally healthy and living active, traveling lifestyles today, pre-retirement and retirement. So they’re thinking about luxury retirement villages, and helping them find the right solutions – long-term health care planning, how to pass on that $30 trillion in wealth to the next generation – in a way that is safe and maybe helps with some education for the youngest generation.”