A client conference can be a number of things, but I like to think of it best as a meeting of minds. People pulled out of their offices, and out of their shells, and forced to think, learn, collaborate, expand their concepts about how they do their job, and grow. Being bombarded with new ideas and new ways to process data can bring a flurry of activity, if applied correctly. I hope that the clients who attended our recent conference found such inspiration, as we certainly tried to provide it.
Over the two day conference, we offered a number of speakers, workshops, labs and one-on-one discussions. But throughout, we tried to weave some threads. Being successful is rarely about doing one thing well. It usually involves taking several things and learning how to tie them together. Seeing the bigger picture brings true results. A hot topic in the industry right now is attracting and marketing to the elusive “Gen Y” or Millennial demographic. As large, or larger, than the “Baby Boomer” generation, this group looms on the horizon. How do we entice, engage and capture them? FARIN tries to help our clients figure that out.
As a taste of our conference, let me share with you some of what was discussed. Three things in particular tie in to illustrate the “Gen Y Dilemma” and how doing just one thing won’t solve your problem. First we heard from Pat Riley, of Verde International. Pat’s firm does detailed demographic analysis, to assist institutions in determining things like where best to target their marketing dollars, or where to open new branches. The rich data available on your markets is staggering, and can be sifted and combined in a myriad of ways to help you make your decisions. But once you know WHERE you want to focus, and maybe even WHO you want to talk to…. What do you DO with that information?
This is where FARIN’s consulting can help, and Tom Farin’s presentation covered some of these ideas. Based on your deposit needs and what your overall portfolio looks like, we can help you create products to bring in the customers you want. When we’re talking Gen Y, part of the challenge is finding the right one. A 20-year old probably doesn’t need a mortgage, and isn’t the least bit interested in your 5- year CD. You also need to design the product carefully so you don’t cannibalize your other accounts. You want probably NEW money and NEW customers, so design accordingly.
Ok, so now we have our new product, but how do we get it in front of our target audience? Gen Y is tricky to market to – they don’t read newspapers, they rarely listen to the radio as their head is plugged into their iPod, they don’t look at billboards as they are busy texting while they drive. So how do we GET to these people? What’s the angle?
The angle is this fancy, newfangled idea called “The Internet”. That is where they spend all their time. This age group grew up digital. They are immersed in it in a way that scientists and marketers are both just figuring out. They don’t think like the rest of us, so we have to learn to think like them. And what they want is instant gratification. “I want what I want, and I want it now. And I do NOT want to have to talk to you to get it.”
That’s the big change that is shaking the financial industry. Many institutions were just getting used to have an informational web site. Maybe they post rates, though that still scares some of you. They list all their checking accounts and then wrap up the page with a cheery “Call Us”, which trust me, does NOT work on young people. They are not going to call you. They are never setting foot in your branch. If you want to get their business, you have to play on their turf, which means communicating in their language. Online. Instant. Targeted. Personal. Now.
So how do we do that? Well, first of all, we need to ditch the “Call Us” mentality. I know you want to know your customers. You want to talk to them about rates, give them the soft sell, steer them towards the products and services YOU think they need. That is very 1995 thinking, lose it. The customer is in charge now. With the power of the internet, they do their research, select and compare products, check peer reviews to see what items are good and what aren’t, make their decision, and buy something without EVER TALKING TO YOU. That is how they want to shop. So let them do it! You have everything to gain, and nothing to lose.
So let’s make this easy. You are ready to take the plunge. “I want the Gen Y customers, I’m ready…. What do I do?” There are really just three things. Probably oversimplified, but this is what you need to do…
Step 1 – Create a good strong page for your fancy new product. Short, sweet, but with all the necessary details and an instant ability for them to contact you or apply online. Don’t bury this product with all your other accounts and service. One product, one page. Tell me what it is, why I want it, and how I get it. And presume that I will not call, or stop by, or even let you know I exist. Presume you better give me all the details I may need, and let me buy it with no assistance from you. If your landing page includes all that, step one is done.
Step 2 – Advertise Online. This is where you want to get good and chummy with Google and Bing (Microsoft’s new search portal). Make sure your new product page is optimized for organic search listings first, as that is free, but then bone up on Adword campaigns and banner advertising. Your fish is in the internet ocean, bait your hook accordingly. Attract them with your online advertising, point them to your product landing page, and let them do the rest.
Step 3 – Buy it Now. If you’re going to lead your horse to water, give them something to drink. Don’t spend the time and energy to make a new product, entice a bunch of traffic to your website to learn about the new product, and then send them headfirst into the brick wall of “Call Us!”. They won’t. They’re gone, and you lost your lead. Instead, let them apply online. It can be a form they submit and you process on the back end or a fully online account opening process that they can fund immediately. Whatever your choice, just do it. Without it, the other steps are wasted effort. Remember Sales 101 - you can have all the leads in the world, but if they don’t convert, you gain nothing. Think of hits to your website that way. Eyes on the page do not turn into dollars in your pocket if the customer doesn’t buy something.
So you can see how this process is not one task, but a continuum of ideas. We start with demographic targeting, followed by product development, then web page design partnered with an online marketing campaign. If you’re trying to bolster your deposit or loan portfolio, you should be thinking through this entire series of events. Just one won’t do the trick. And this is the kind of Big Picture thinking we try to bring to our clients, and we enjoy delivering at our Client Conferences. Making a CFO see how the reports they spit out at their desk tie into marketing and can be used to develop new business is a real inspiration for us. We’re here to make you succeed and education is just one tool we use to do that.
