Transcript Document
Welcome Reality Check Reaching 18-34 Welcome Reality Check Reaching 18-34 Reaching 18 – 34 • • • • • • • • • 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 … • • • • • Authenticity Boldness Consistent connectivity Relationships built over time Language that’s plain and fair Product Management • • • • • • 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: – – – – 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 – – 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 • • • • • • • 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 … • • • • • 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: • 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: • 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: • 396 million hits to date • 14 million unique visitors • Double digit awareness growth • Average time spent on site: 7 minutes • Average sales increase of 9% per week • Within one day of its release: 1 million site hits • 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? • 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 • TO CREATE A PLAN that will assist each agency/program with fundraising or administration support • TO PROVIDE SEED MONEY – if required – to kick off and support independent program launches Will It Work?