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TRANSCRIPT
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THE NEXT GENERATION OF GENERATIONAL MARKETING
Sonya McDonaldRBFCU
WHAT YOU’VE HEARD…
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WHAT YOU’VE HEARD…GENERATIONS ARE BASED ON
BIRTH YEARS
The Generation Segments
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
19
221
925
19
281
931
19
341
937
19
401
943
19
461
949
19
521
955
19
581
961
19
641
967
19
701
973
19
761
979
19
821
985
19
881
991
19
941
997
20
002
003
20
062
009
20
122
015
Mill
ion
s o
f B
irth
s
Traditionalists Baby Boomers
Gen X Millennials Gen Z
Source: U.S. Census Bureau
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WHY ARE GENERATIONS USED IN MARKETING?
• They experienced similar trends at approximately the same life stage and through similar channels
• Generation-shaping trends are most influential as people come of age
Source: Center for Generational Kinetics
TWO FLAWS OF THIS APPROACH
1. Everyone is different at an individual level
2. The pace of change continues to increase– Generations will evolve from a 20-25 year range to a
15 (or shorter) year range
– Instead of 3 or 4 generations in the workforce or as Members, the new normal is 6 or 7
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SO, YOU HAVE TWO OPTIONS:
SO, YOU HAVE TWO OPTIONS:FOCUS ON BIRTH YEARS AND TRY TO
COME UP WITH 6 OR 7 STRATEGIES
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Generational Needs
Traditionalists
Generational wealth transfers
Is there a long-term deposit retention risk?
Baby Boomers
Significant debt –especially real estate
Planning and saving for retirement
Gen X
Most severely impacted by financial crisis
Inadequate long-term savings
Millennials
Younger focus is on budgeting and introducing to credit
Older focus shifts to home-ownership, saving and investing
Gen Z
Largest generation – and the first true digital natives
Economic and social world is more uncertain than ever
Source: Raddon Research Insights 2019
OR FOCUS ON LIFE EVENTS
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OR FOCUS ON LIFE EVENTS& REACH OUT TO MEMBERS
DURING THESE CRUCIAL MOMENTS
MOST STRESSFUL LIFE EVENTS
• Death of a spouse
• Divorce
• Going to prison
• Death of a close friend or family member
• Personal injury or illness
• Dismissal from work
• Retirement
• Negative change in your finances
• Marriage
• Pregnancy
Source: Top10hq.com, 2019
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MOST JOYOUS LIFE EVENTS
• Birth of first child
• Wedding day
• Birth of grandchildren
• Birth of another child
• Day of retirement
• Moving into a new home
• Child’s first steps
• Hearing your child’s first words
• Meeting the partner of your dreams
• First kiss with that person
Source: Top10hq.com, 2019
WHY WOULD MEMBERS CHOOSE YOU DURING THESE LIFE EVENTS?
• Service
• Trust
• Value
• Reputation
• Being There When it Counts
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HOW DO WE CAPITALIZE ON THIS?
HOW DO WE CAPITALIZE ON THIS?
BE RELEVANT TO YOUR MEMBERS
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KNOW YOUR MEMBERSHIP
KNOW YOUR MEMBERSHIP
Consider generational cohorts at a high level, but really leverage those life events to converse with them. Lifestyle data (i.e. transactions) can make conversations more relevant.
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Home
Predictive Analytics is an industry-leading insights platform leveraging payment and transaction data to strengthen customer relationships, serve as the foundation for data-driven strategiesand unlock profit opportunities.
The further out we go, the more targeted we get
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The further out we go, the more targeted we get
The further out we go, the more targeted we get
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The further out we go, the more targeted we get
The further out we go, the more targeted we get
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The further out we go, the more targeted we get
Who shops at Home Depot or Lowes?
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Who shops at Home Depot or Lowes?
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LET’S TALK ABOUT CHARLOTTE & BILL…
KEY TAKEAWAY
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KEY TAKEAWAY
LIFE EVENTS > GENERATIONS
FOR EXAMPLE…
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GEN Z IS OMINICHANNEL
Gen Z’s trusted advice is coming from parents, family, and other adults, and when doing a non-routine financial activity, they prefer to have similar face-to-face interaction.
64%
12% 11%
31%
13%
47%
12%9%
0%
10%
20%
30%
40%
50%
60%
70%
On my mobile phone On my tablet or personal computer
With a representative at a branch
At an ATM
Day to Day Banking Activities Open a New Deposit or Loan AccountSource: Raddon Research Insights 2019
TAKEAWAYS
• Generational segmentation is a useful framework to understand similarities within groups but behaviors and values are more important
• The year you were born does not necessarily determine the generation you belong to
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TAKEAWAYS
• A values-based approach is more cost-effective than a generation-based approach– One broad strategy with segmentations vs multiple
strategies
QUESTIONS?
Sonya McDonaldRBFCU