Imagine following the scent of fresh-baked bread into a new local bakery, only to discover that they have nothing but week-old donuts. You would be very disappointed! Conversely, that same bakery could have the best bread in the world, but if they don’t promote it publicly, you may never come in the door.
Does that seem like an absurd scenario? It happens all the time with community financial institutions. And unlike a bakery, you can’t pipe the smell of money into your neighborhood to bring people in the door (wouldn’t that be nice?).
Millennials Are Hungry For A Local Solution
According to the 2015 Consumer Banking Insights Study, all other factors being equal, 2 of 3 adults — including 59% of megabank customers — would rather bank at a community bank or credit union than one of the big national banks.1 That’s an impressive statistic when you consider that megabanks control nearly half of the deposits in the U.S.2 Why do consumers seem to favor the megabanks so heavily, if so many of them feel a desire to switch?
According to the same study, 30% of consumers are unaware of their options when it comes to choosing a community financial institution, and nearly the same number (31%) believe that local institutions can’t compete with the products offered by megabanks.
The battle for consumer loyalty is fought on two fronts: awareness and substance — in order to get more account holders, community financial institutions need to be strong in both.
Keep Things Fresh And Word Will Spread
Based on this research, here are some effective things you can do to build awareness with Millennials.
- Marketing — whether your institution has a long history or a robust membership segment, sponsorships and local advertising partnerships go a long way toward giving people reasons to keep their money with you.
- Launch a referral program — your existing account holder base can be a powerful awareness tool. Offer refer-a-friend incentives for newly opened accounts. The process needs to feel as simple and rewarding as possible.
- Run a switching promotion — Offer to pay any account closing costs incurred at their old bank and help walk them through the process of transferring any automatic deposits or payments. This lessens the perceived pain of switching institutions.
Bake Quality In From the Start
It’s just as critical that you offer rewarding products and convenient service that Millennials want once they recognize who you are. More than 75% of Millennials3 want to conduct some of their bank business in person, but if they miss out on the conveniences offered by megabanks, you won’t earn their loyalty.
On the other hand, if you create an experience that offers what customers are looking for, those same customers will be eager to recommend your institution to friends.
A Proven Recipe
Currently, more than 350 institutions use the branded relationship platform offered by Kasasa to overcome the challenges of marketing awareness and product substance. Whether it’s through our comprehensive marketing resources (with an entire library of production-ready assets at your disposal) or with our data-backed product team, we help you implement a strategy that fits your balance sheet and your needs.
Feel free to contact us to hear more about delivering a fresh customer experience that will bring more Millennials through your door.
12015 Consumer Banking Insights Study conducted on behalf of Kasasa (formerly BancVue)
32015 Consumer Banking Insights Study conducted on behalf of Kasasa (formerly BancVue)