Capturing market share – through new customer acquisition or existing customer cross-sell – has been at the forefront of financial institution’s goals for years. In fact, the 2016 State of Financial Marketing Report ranks this goal as number one among those polled. A staggering 49% rate this as their top priority.
It is no surprise that within this goal, marketers are attempting to hone their market share growth on one segment in particular – Millennials.
Millennials have long been desired consumers among all industries for their potential revenue generation now, and in years to come. With the oldest Millennials in their mid-to-late 30’s, and the youngest entering their mid-20’s, Millennials are striking a new chord. One of prosperity, increased stability, and, yes, profit potential.
This change in the Millennial market means that you also need to adjust your tactics on how to capture Millennial market share.
- Treat Millennials by Life Stages. The Millennial generation has long been treated as “different” by many industries when attempting to sell goods and services to them. The key is to look past this notion of this generation making buying decisions differently and market to them based on the life stage they are in. After adjusting life stage marketing to Millennial values, this is a sure-fire way to increase your market share of the Millennial market.
- Adapt to Buyer Behavior. Millennials have shown marketers and advertisers that the traditional buyer’s journey and behavior is not always the way to their wallets. Millennials thrive on research and knowledge before making a purchase decision – but only as long as the time and energy spent benefits the end result. Knowing that financial decisions are a serious matter for this generation, spend the appropriate amount of time guiding your Millennial market through information and resources that will enhance their buyer experience. This will ultimately allow you to grab their attention when the buying time is right.
- Have a Succession Plan. The early trends in the financial marketplace for Millennials was to identify key factors for creating specific products or services, and then develop one or two catered directly to Millennials. (Think about Simple Bank.) The downfall was (and still is) that Millennials eventually outgrow those specific products and enter different life stages. A key factor to the success of increasing and retaining Millennial market share will be to have a product and service succession plan for this segment of the market. This will ensure you continue to build and keep your Millennial customers happy.
As Millennials continue to seek out financial products and services to fit their changing lifestyles, it is paramount that your financial institution reacts and adapts to these changes. The more market share you can build early on, the better positioned your organization will be to maintain growth of this segment.
Truebridge can help you achieve your goals of gaining Millennial market share. Find out how by dropping us a note.