The Generation Balloon Impacting Our Economy

All the pundits mention how consumer spending is what is needed to build our economy back up. However, the generation that built it for so long has hit the wall, and the lack of spending by Boomers is noticeable! So, what's next? Gen Y!

There is so much being written about this young generation that rivals the Boomers in size, so we decided to jump in with our research and thoughts as well. Below, our tips introduce some food for thought to help you create strategies to embrace Gen Y and their impact on our economy for the next 20-30 years.

By the way, our gift card winner from last month's poll about Gen Y was Vicki E. So, take 3-5 minutes to answer this month's poll on "Marketing Loans in a Slow Economy" and you may be a winner, too! It's as easy as clicking here.

Best regards,

Nicki
Nicolette Lemmon, President

PS. Don't forget to visit our Credit Union Sustainability video microsite - CU execs talk about the ability to survive and thrive in this economy. Another resource is our blog at MyMarketingInsights.com (link above) to read more on marketing strategy, trends, faves and other good discussions.

GENERAL MARKETING TIP

The Impact of Gen Y Members

There is so much talk about the "new age wave" of Gen Y, that we decided to find out more about what impact this generation was having in the memberships of client credit unions. In picking seven clients of sizes ranging from $90 million to over $500 million, it was interesting to see the profiles of young adults that opened accounts at the credit union.

A recent blog post on our MyMarketingInsights.com highlighted the need to review the products and services that Gen Y has with your organization.

With so many things that need to be funded in the marketing budget and the budget cuts due to the poor economy and increased insurance premiums, every organization is looking for ways to make the dollars stretch. One area is youth marketing, that for the low amount dollars that are brought in by children and teens, many senior managers and boards question marketing to them at all.

However, note the chart below of checking penetration of current 18-30 year old members at seven different client credit unions. Isn't it interesting to see the high percentage of checking for those that joined when they were between ages 13-17 that are still in the membership after 18?

What does this chart tell me? Marketing to youth and their parents to establish accounts before age 17 will help to solidify the relationship with them as they start building their adult lives over age 18.

In most cases, the members who joined as children had a significant penetration of checking as well.

Want to see more about Gen Y? Check out the data in our white paper, "Understanding the New Age Wave: Gen Y," because there is a benefit to developing youth marketing, especially when Gen Z or the next baby boomlet is beginning to grow past age 10.

Looking for the right strategies, tools and solutions to target Gen Y and your younger members? For youth marketing opportunities, visit us online, email us or call toll-free at 1.888.536.6243.

E-MARKETING TIP

Reaching Gen Y Where it Counts

Gen Y is the first generation that has grown up digitally. They've learned to quickly embrace new technology and adapt to it accordingly. For this reason, Gen Y holds brands to high standards when it comes to them keeping up and adopting new technology. For financial institutions to actively attract, engage and retain this younger demographic, a strong online presence is necessary.

According to research commissioned by Fiserv and conducted by Accelerant Research, 80% of Gen Y has used online banking within the past month, a higher percentage than any other generation. Be sure to keep up with the latest advancements and consider adding additional services to your online banking sytem, such as personal finance management (PFM) tools.

In addition to online banking services, online resource and financial literacy tools should also be made available to Gen Y. A great way to do this is to create microsites geared to teens or even an 18-24 age demographic.

For example, to reach teens online, LemmonTree developed, a web microsite that offers financial and life tips to teens. With the ability to be branded for clients and added to their current site, 'Getting Started' can also be a great financial tool used by parents with teens to help generate discussion about money management.

Looking for more ways to engage with your customers/members online? Contact LemmonTree's E-Marketing Department for help with online solutions.

PERSONAL MARKETING TIP

What's the New Resume for Gen Y?

Marketing thought leader and blogger, Seth Godin, during a webinar replied to a question about preparing a resume for a new marketing job with "What's a resume?"

Interesting point. If you're trying to get hired for a particular position or prove that you are an expert in your field, the standard definition of a resume may not be enough.

The Internet and social media boom have revised the definition of a resume. While everyone does need a resume, it is no longer restricted to an 8.5" x 11" sheet of paper. The enhancements to your personal brand now may include blogging posts, a Twitter account, YouTube videos, and/or a personal website. All of these mediums can be part of the showcase of your expertise and thought leadership. However, the use of these can also influence recruiters or hiring managers in different ways depending on how professional and careful you have been about your brand online.

It is a given that you will be "Googled" and profiles reviewed if you have submitted yourself as a candidate for a job. Of importance is for Gen Y and upcoming Gen Z to be very strategic in what is posted online, photos and videos uploaded and profiles that are created. Too cavalier with crazy party photos and posts with swear words or slang and a recruiter may get the wrong impression of your brand.

Job searching norms have changed, but for older candidates there will likely not be as many "fun" or "crazy" items in social media out on the Net. However, for young Gen Y and the upcoming Gen Z, their heightened use of social media needs to include a critical eye on how their posts and uploads impact their personal brand for the future!

For more on personal branding, check out our blog posts for more tips!