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THE NEXT GENERATION OF GENERATIONAL MARKETING

Sonya McDonaldRBFCU

smcdonald@rbfcu.org

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

smcdonald@rbfcu.org