Welcome
Reality Check
Reaching 18-34
Welcome
Reality Check
Reaching 18-34
Reaching 18 – 34
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Gen X, Gen Y and ?
What we seem to expect?
What makes them tick?
The New Gen Y
Product development
What BIG-Bank is doing?
What are others doing to reach Gen Y +?
What can Credit Unions do?
Wrap up
Gen X, Gen Y and…
Hip, Dark, Edgy
Gen X, Gen Y and…
But!
Gen X, Gen Y and…
Violent?
Drug heads?
Pregnant teens?
Interdependent?
Gen X, Gen Y and…
• Violent crime reduced from 1992/93 peak – 50%
• School shootings curbed by more than half
• Casual Sex “hookups” decline – virginity on the rise
• Smoking, drinking and drug use – declining
• Gallup reports 90% of teens very close to parents – more
than 40% of boomers state that they’d be better off
without parents.
• Suicide rates fallen significantly from 1998-04
all-time high
Gen X, Gen Y and…
Moving from
downbeat and alienated
to upbeat and engaged
Gen X, Gen Y and…
Cause marketers, listen up:
Volunteerism among college freshmen is up.
A University of California survey of
college freshmen from fall 2001
showed an all-time high of 86.2%
of students who reportedly engaged
in volunteer work, compared to 66% in 1989.
Volunteerism up 20.2%
Gen X, Gen Y and…
Teens now form the largest
religious age bracket.
Church attendance among
youth up nearly 10% since 1995.
Gen X, Gen Y and…
So who are they?
Gen X, Gen Y and…
• Near Zero Generation gap
• Parent-youth co-purchase decisions common
• Parent Heroes
• Retain close parental bonds – consult parents
• Trash-talk pop culture loosens grip
• The ordinary Avril Lavigne over Star studded/racy
Britney
• The slacker is passé
• Group oriented – help me become we
• Leave no one behind
Gen X, Gen Y and…
Translated
Gen X, Gen Y and…
• Confident
• Hopeful
• Goal and achievement oriented
• Civic minded
• Inclusive
Gen X, Gen Y and…
Who are we left with?
Gen X, Gen Y and…
GEN X SQUARED
Millennials
Introducing the Millennials
Millennials
He was a boy, she was a girl
Can I make it anymore obvious?
He was a punk, she did ballet
What more can I say?
He wanted her, she'd never tell
Secretly she wanted him as well
But all of her friends, stuck up their nose
They had a problem of his baggy clothes...
Millennials
He was a sk8ter boy
She said "Cya later boy
"He wasn't good enough for her
She had a pretty face
But her head was up in space
She needed to come back down to earth
Millennials
Five years from now, she sits at home
Feeding the baby, she's all alone
She turns on T.V. and guess who she sees
Sk8ter boy rocking on Mtv
She calls up her friends, they already know
And they've all got tickets to see his show
She tags along, stands in the crowd
Looks up at the man that she turned down
Sk8ter Boy, Avril Lavigne
Millennials
So why the change?
• 9/11
• Tsunami
• Katrina
• Increased fuel prices
• Janet Jackson’s Wardrobe malfunction
at the 2004 SuperBowl
Millennials
Are these Millennials recoiling
into the fetal position?
Millennials
What makes these Millennials comfortable?
We have a theory!
Millennials
Shopping
Millennials are a marketer's dream – they'll buy
simply because it is cool to do so.
$$$ $$$ $$$
• Don’t get money-handling, yet totally get debit
• And debt (student loans)
– We owe $10 trillion
– Cramps our freedom
– Clouds our optimism
• Want safety-nets, brands that allow us to make
our own decisions
• We want to help shape your brand, you should
want our respect
We want from you …
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Authenticity
Boldness
Consistent connectivity
Relationships built over time
Language that’s plain and fair
Product Management
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Family
Flexibility
Alternative suppliers or partners
Connect all the time
Deepen/develop the relationship over time
What Big-Bank can’t do
Family
• Provide online tools for needs & desires (home ownership, causecontribution, saving for “big trip”, or combo
• Low-value client-base because not deep relationships yet
– But you want to capture their loyalty early
– Determine their longer term potential
• Finding the potential high-value, or long-term value: what are the
predictors?
– What their family looks like?
– What education they’re getting?
– How they’ve “managed” their early relationship with you?
– Their credit-rating?
Flexibility
• Self-employment … in & out of relationships (self, partial self, job)
• Flexibility through:
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One product does all (ING mortgage)
One piece of security for all the loans no matter the purpose
Add-on features so I build as I go
Choice choice choice
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Choose my own loyalty: points for me, points for others/orgs, rebates,
Be careful if you reward referrals
• Adapts to where they’re at … (right prod to right segment at right
time)
• Core product tweakable with features
• Family/community products that work together, allow me to link
up
• JV with non-FI to build something that works together (phone-co
& fi)?
• Put different front-ends on products so they align with who I am
• Reward my loyalty:
Keep it flexible, their choice
Connect all the time
• Constant connectivity
• Move features around within product
• Easy switch to similar product as needs change
… likely doesn’t feel like a switch
• No penalty for move around within YourCo
• Device-free (phone, text, ATM, web)
• Self-employed isn’t separate
• Also connected to other users, how they use it,
when they use it
Alternative suppliers/partners
• Make it easy for family to provide funding,
assistance, advice
• Pay-day loans
• Align with non-banks that:
– Do family, flexibility, connect, deepen
– Leverage their brand
– Co-build interesting products to work together
Develop over time
• Ability to add on features
– And easily remove others
• Reward:
– Depth of relationship
– Tenure
– Referrals
• As they grow from teen to recent grad to
traveler to house-buyer to young family
• Give advice, what are their peers doing (polls),
how are they using your services
Banks are all the same
• All demographic groups declining sense of trust in big
organizations
• Heavily urban: can’t understand “small” better, like small
bus, small town, small savings, small loan (be careful of too
much “small”)
• Don’t provide transparency, not easy to deal with, all
about forms, fees obvious and as low as possible, show
where the value is.
Banks are all the same
• The web levels the playing-field and gives
measurability/responsiveness
– They can’t manage or leverage in the same way you can
– What’s working today, this minute, how this change affects
response
• Community-based can appeal to their sense of … things to
agree on, connectivity, safety-net
• Small Business have simple needs (chequing account, nightdeposit, debit card, credit card) and don’t want personal too
separate if at all
– Banks struggle to connect with individual
– Have a long-standing reputation of not being able to do so
Sometimes banks get it… a bit
CU can do saftey-net
• Community be it local or “new” community
can leverage sister-organization like union,
government workers, town
• Likely know their parents, extended family
– Can facilitate advice-giving and helping-hand
– Can connect the dots because you know them
– Less need for capital-intensive infrastructure
• They’ll tell you needs through data, polls, chats:
– Where they’re headed, what they want/expect
– Build this into your product-development cycle
NDP on bank mergers
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Community reinvestment
Transparency & accountability
Community-based access
Credit-card fairness
Small business loans
Consumer protection and payday lenders
Job protection
Judy Wasylycia-Leis
NDP Finance Critic
August 12, 2005
They want from you …
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Authenticity
Boldness
Consistent connectivity
Relationships built over time
Language that’s plain and fair
Big Bank
What are Banks doing to
speak to Millennials?
Big Bank
Taking the ‘B’ word
out of the brand!
Big Bank
• Harris Bank – Now Harris – 190 Branches
• Bank One – Now Chase – 1,900 Branches
• Citibank – Now Citi – for credit card and
mortgage business
Big Bank
Why?
The b-word found to NOT be necessary for
customer loyalty or business. “all it does is limit
what you have in your mind about us – it
positioned us as a retail bank when we offer so
much more”
Jen Dillion, Harris
Big Bank
“Bank has traditional connotations. Gen X,
Gen Y and others have a different approach
to money.”
Tracy Mills, American Banking Association
Big Bank
“Dropping the word 'bank' seems like a little move but it
really is a culture change – it's telling their customers 'We're
not a bank, we're a store.”
Bill McCracken, Synergistics Research Corp.
Big Bank
We're A Store?
Big Bank
Big Bank
Big Bank
USBank, Bank Atlantic, Umpqua Bank,
Washington Mutual are doing just that.
And guess where else they are
getting their cues from?
Big Bank
Big Bank
Not only Victoria’s Secret and McDonald’s but
Home Depot, Starbucks, Target and Old Navy
Big Bank
QuickTime™ and a
Sorenson Video 3 decompressor
are needed to see this picture.
Big Bank
“Bankers are starting to think more like retailers – that
includes longer hours, friendly-teller training, and 'How
can we turn a foreboding teller counter into a
please-come-in-and-linger atmosphere?”
The McDonald's-Nordstrom mentality is starting to
permeate the banking industry.”
Bill McCracken, Synergistics Research Corp
Big Bank
Commerce – America’s Most Convenient Bank
• Offers free coin-counting machines
• Free personal checking
• Seven-days-a-week banking
• Greeters in its branches
It also pays for research gleaned by thousands of ``mystery
shoppers,'' a technique borrowed from retailers.
Big Bank
Washington Mutual Inc., – WaMu,
another champion of casual.
• Youthful “concierges” wearing khaki pants and
bank-logo T-shirts
• 2,000 U.S. “retail banking stores”
Big Bank
Umpqua, West Coast version of Commerce
• Branches referred to as community centers.
• Neighborhood gathering spot
• It serves its own brand of coffee,
• Offers newspapers and periodicals to read,
• Hands out an Umpqua chocolate with
each receipt
• Has a CD-burning machine in the lobby for
customers to download songs onto a customized
Umpqua CD.
How are others speaking to Millennials?
What you are about to see!
Warning: Unless you are a Millennial (or weird) you may not
get it
This is NOT traditional advertising or media - your reactions
should be similar
Solo, Diesel, L’Oreal, Coke and Converse are doing it - so
can your Credit Union
This is almost too weird for us
How are others speaking to Millennials?
QuickTime™ and a
Sorenson Video 3 decompressor
are needed to see this picture.
How are others speaking to Millennials?
QuickTime™ and a
Sorenson Video 3 decompressor
are needed to see this picture.
How are others speaking to Millennials?
What’s the strategy?
Create Buzz!
How are others speaking to Millennials?
How are others speaking to Millennials?
How Audi Built Buzz:
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Audi A3 Launch: www.stolena3.com + lastresortretrieval.com +
virgilkingofcode.co
Description: An Audi A3 was “stolen” (driven through plate glass window)
from a downtown Audi dealership around the time of the launch for the
A3. From a fake crime scene to fake blogs this launch initiative included
the following: wild postings seeking info on the stolen car, fake stolen
property company websites , theft warning handouts at autoshows, viral
videos from the theft, as well as traditional TV and print.
How are others speaking to Millennials?
How are others speaking to Millennials?
Results for Audi:
• Site traffic reached 125K in the first month
• 1st year sales targets were broached in 4 months.
A car launch that made Audi competitors drool
How are others speaking to Millennials?
How Axe Builds Buzz:
AXE:
www.axefeather.com + evanandgareth.com
Equipped with: Viral videos, web blogs & chat rooms this site contains
everything you can’t and won’t see on traditional television. The Axe you see
on television is one tenth of the brand you see online and on the streets and the
reason they are at the top of their game.
How are others speaking to Millennials?
How are others speaking to Millennials?
Results for Axe:
• 80% Market Share
• Rights to the title:
“Number One Selling Body Spray in America”
How are others speaking to Millennials?
How Burger King Builds Buzz:
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Burger King: www.subservientchicken.com + sithsense.com
Description: As a part of a four tiered approach to re invigorate the brand by achieving
relevance through differentiation, BK has reintroduced the Have It your Way concept into the
online world. A disturbing 7 foot tall chicken in red garters can be found at the site, taking
any orders commanded by site traffickers. This site hit home the message while achieving
massive awareness & love from bloggers and youth alike.
How are others speaking to Millennials?
How are others speaking to Millennials?
Results for BK:
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396 million hits to date
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14 million unique visitors
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Double digit awareness growth
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Average time spent on site: 7 minutes
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Average sales increase of 9% per week
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Within one day of its release: 1 million site hits
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Within one week of its release: 20 million site hits
How are others speaking to Millennials?
Truths about the create buzz approach
• It will be unpopular amongst the traditional manager
• If you embrace it, your kids would think that their parents
understand them
• Subtlety is key! Make this self-serving and you will be tagged as
“lame cool”. The BK spot doesn’t even show product
• Look for immediate sales and you will have missed the point. Buzz
drives inquiry, inquiry MUST be met at the door. Met at the door
means products in hand – ready-to-serve
The New Approach
In the end what are these marketers doing?
Building A Community
The New Approach
The New Approach
Another Approach
We have an idea – one not so off the wall
Community Giving
Targeted at Millennials
Another Approach
Each community – and CUs are a community
oriented organization – has many not-for-profit
organizations such as:
• Local and national health organizations such as lung, heart &
stroke, cancer, blood agencies
• The United Way group of agencies (including Big Brothers/Sisters,
shelters)
• Libraries, theatres, parks, hospitals
• Local community development agencies
Another Approach
Each not-for-profit struggles each year trying to manage
programs with diminishing budgets. A lot of focus is placed
on fundraising and administration. Less and less time is
applied to delivery or development of proactive programs
Credit Unions can help change this – and gain the loyalty
of young adults concerned about social change –
through empowerment.
Another Approach
WHAT IS THE ROLE OF THE CREDIT UNION?
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TO MOTIVATE, ENCOURAGE AND TUTOR groups of young adults in the
target demographic to choose a not-for-profit program or agency in
their respective community to support
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TO CREATE A PLAN that will assist each agency/program with fundraising
or administration support
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TO PROVIDE SEED MONEY – if required – to kick off and support
independent program launches
Will It Work?