Customers who are part of the Gen Z and Millennial generations comprise over a third of the US workforce. That’s according to Stephane Kasriel, CEO of Upwork.
In the next 10 years or so, observers expect Gen Z and Millennials to take up over half of the total workforce.
Financial institutions would do well to recalibrate their services and messaging efforts to attract this growing consumer base. What are some useful strategies to consider?
1. Make relevant information easily accessible
Younger adults usually research as much as they can about a product or service before making a decision. They frequently utilize several digital platforms like Facebook and Google to find helpful information.
Financial institutions or organizations that don’t have a good digital presence will miss out on attracting this burgeoning consumer group. Investing time and resources in building captivating websites and social media channels can help with that goal.
It’s also important for companies to relate to younger generations. Financial services related to retirement should be reserved for older audiences. Engage young adults on topics and themes that resonate well with them (e.g. financial independence, buying a car for the first time etc.).
A good way to find out what is relevant to younger audiences is by implementing a coherent digital marketing strategy. For instance, using local SEO in the field of financial services can determine what finance-related keywords are being sent to search engines.
2. Re-imagine traditional services using technology
This should come almost as a no-brainer. Gen Z and Millennials are quick technology adopters. For these people, convenience and seamless service experiences are paramount. That’s why several banks and financial institutions are already providing digital financial services.
For example, remote deposits are make it easier for people to transfer money remotely from one bank account to another. Banking and financial apps on mobile devices help facilitate payment without even needing to log into a personal computer.
With the outbreak of COVID-19, digital wallets and e-payments are increasingly becoming the norm to avoid physically exchanging currency.
Firms should identify which of their services — or a few aspects of their services — can be transposed to the digital sphere. Working with app and online platform creators will help with that effort.
Additionally, financial institutions and services should also realize that younger generations are more willing to share a bit more personal information — if it means more convenient service. As a result, digital services can also be used as a way to learn more about the needs of customers. This can be done through platform features like profile creation.
3. Work with influencers
It can be difficult to properly convey the benefits of investments and other financial options. And it’s no guarantee that one can avoid using industry terms like liabilities, accounts receivable or Roth IRA.
Thus, traditional communication strategies may not be effective in engaging young professionals. That’s why several firms incorporate influencer marketing.
Having a big celebrity or fairly prominent figure be visibly seen with your brand can do get young adults listening to what you have to offer. Influencers have a huge following in social media and can get your message across to a wide range of people (this goes back to #1 above).
Of course, it’s crucial that this influencer is someone that Gen Z and Millennials respect or look up to. Financial companies should also identify which personality would fit well with their overall branding.