Open any banking industry publication or website. How long does it take you to find an article about Millennials?
If you’re reading this in 2017, the answer is probably “not long.” And for good reason. They're top of mind for our industry because our survival depends on attracting younger consumers. Millennials are the largest generation in American history (80 million strong) and have a unique set of financial needs (they carry large student debt, are delaying major purchases, and have a plethora of digital options at their fingertips).
Only 51% of Millennials say they are familiar with local community banks, compared with 82% saying they were familiar with national megabanks. Further complicating the issue is that Millennials think your institution is the same as everyone else; 53% of Millennials don’t think their bank offers anything different or unique.
Millennials can’t find you and they don’t know why they should care about you.
Ouch, the truth hurts enough when we see the numbers, but to hear it from the mouths of Millennials...
At best they are confused about community banks. At worst they associate you with "old people." Note the absence of associations we campaign towards: community, service, local, responsible, and personalized.
The answer is social media
Let’s look at the numbers.
- 92% of Millennials are active users on social media
- The average user spends 50-minutes a day on Facebook
- 78% of respondents said that a company’s social media posts impact their purchases
- 33% of Millennials rely on blogs before making a purchase compared to less than 3% for TV or magazines.
These statistics tell a common story. Social media is popular, it consumes a lot of attention (especially with younger demographics), and that means that brands can influence purchasing behavior through the strategic use of these channels.
The opportunity of social media is the good news. Unfortunately, there is also bad news.
For as much social media these Millennials are consuming, surprisingly little of it is from community banks and credit unions. In fact, 87% of all consumers surveyed said they find bank social media "annoying, boring or unhelpful." An analysis of engagement by Spredfast found that content from Financial Services received both the lowest amount of engagement and the highest percentage of negative feedback.
You’re always sending a message
You're not safe if you ignore social media. Lack of presence actually sends a scary message.
You’re behind the times.
You don’t get their needs.
You don’t have adequate technology.
Not being on social media says a lot about your institution and the products you offer, not to mention it renders you invisible to large swaths of this segment. We should stop looking at Social ROI as Return On Investment, and instead ask what is the Risk Of Inactivity?
Hopefully, now you're not arguing that social media isn’t a critical component of your marketing mix, and instead asking the important next question of “How can we be found on social?”
How can my institution be found?
Start by claiming and optimizing your listings. You’ll want to make sure you build some policies around social media before you embrace these channels, but these guides will walk you through the basics of claiming and optimizing each respective listing.
Need more help?
If you're a Kasasa institution, we provide one-on-one consultation calls to help you establish and optimize social media strategies that deliver on your business objectives. Just ask your MPM! Not a Kasasa client? Reach out and let us show you all the ways we can help you attract younger consumers.