August 6, 2018

Five Financial Generation Segments And How To Reach Each

Banks and credit unions own a wealth of information about their account-holders, enabling the ability to create a communication plan to reach every account holder – collectively and individually.

Banks and credit unions own a wealth of information about their account-holders, enabling the ability to create a communication plan to reach every account holder – collectively and individually. Instead of mass marketing, the time is now to use this customer information carefully and intelligently to communicate with them in a targeted and personalized manner.

Generational segmentation is one of the simplest yet most effective methods for communicating products and services to your overall audience. A generation comprises a group of people born within a similar span of time (about 15 years) who share a comparable age and life stage and who were shaped by a particular time span’s events, trends and developments.By using generation as a basis for segmentation, we can target certain patterns that are driven from generational differences. Generational marketing is an approach to communication that recognizes and utilizes generational archetypes, patterns or paradigms.

While not the most sophisticated form of targeting, it is a simple and straightforward way to get started as you begin to effectively utilize customer data to move away from traditional mass, “shot-gun” marketing.  Results have shown that members of a particular generational group do have much in common and respond well to messages that target them. Translating generations to relevant communication implies the use of images, messages and offers that would resonate with that particular group.

Financial marketing primarily focuses on five generational segments:

The Silent Generation (1928 – 1945)

While some of the Silent Generation use the Internet and social media, they also still like to be reached via traditional media such as direct mail. It is important that the same message, visuals and offers be presented on both digital and traditional marketing channels.

What appeals to them?

  • Family values, a sense of family and belonging
  • Savings and financial security, leaving a legacy
  • Simple layouts and direct messaging

Baby Boomers (1946 – 1964)

Baby Boomers prefer stability to change and tend to be very loyal to brands that build trust over the years. A bank or credit union that utilizes consistent messaging and value propositions generally performs well with this generation.

What appeals to them?

  • A loyalty program that keeps them engaged
  • An institution that offers multiple banking products
  • Products that offer cash-back incentives

Generation X (1965 – 1979)

Many of this generation are not saving for their retirement or children’s college education as they had planned so programs and incentives to save are appreciated. Gen-X loves to support a cause so share your institution’s charitable outreach with Gen-X account holders.

What appeals to them?

  • Savings and coupons
  • Contributing to a worthy cause
  • Lifestyle nurture programs (messaging like “We’ve been with you all along”)

Generation Y / Millennials (1980 – 1994)

While this generation is very nimble and searches many options before making a decision, they are also drawn to rewards programs. 77% of millennials participate or are willing to participate in rewards or loyalty programs.

What appeals to them?

  • Focus on innovation and stay on trend
  • Offer and emphasize reviews to show reliability and trustworthiness
  • Provide social media incentives
  • Offer rewards or loyalty programs

Generation Z / The Net Generation (1995 – Present)

This generation’s buying power is a massive $44 billion and growing. Gen Z is tech savvy across all digital channels. Messaging must be quantitative, quick, and authentic in “snack-able” content that captures their attention and proves the value added.

What appeals to them?

  • Use quantitative data
  • Reviews and testimonials resonate
  • Provide a unified user experience across all digital channels
  • Messaging should be to-the-point

While each individual has their own unique personality and responses will not be uniform; responses rates will certainly be far better than a non-targeted, mass marketing approach that tries to show all products to all users despite differences in life stage, finances, and product preferences characterized by generational preference.

Let DeepTarget help your bank or credit union begin communicating with a data-driven strategy today!

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