3. MILLENNIALS: HOW THEY…
• Connect to brands
• Shape their opinions about products & companies
• Use technology to build their networks & share
information
• Make purchasing decisions
• Are influenced and influence others
4. JUST THE FACTS
• Millennials are the largest, most diverse, educated &
influential shoppers on the planet
• Positioned to be the wealthiest generation to date
• >1.7 billion people on earth are 15 -30 yrs of age*
• By 2015 in the US, annual spending >2.45Trillion/yr**
• By 2018 in US, projected income will be $3.4 Trillion/yr –
Surpassing Baby Boomer income**
• Millennial women represent a $54B marketing opportunity,
surpassing baby-boomers in consumer package goods
spending***
• Have influence over their Baby Boomer parent’s choices &
will inherent that money
Sources: *CIA World Factbook **Javelin Strategy & Research Study ***IRI study
5. MILLENNIALS:
RANGE OF LIFE STAGES & MILESTONES
• From adolescence to adulthood
• From high school to college or workforce
• From single to married to parents or just single
• The avg. age of a new mom is 25
6. MILLENNIALS:
MANY LIFE-DEFINING EVENTS
• 2004 Southeast Asian Tsunami
• Hurricane Katrina
• 2008 Sichuan (China) Earthquake
• 9/11 I’ve seen
a lot
• The Great Recession- Banks, in my
Insurance And Real Estate short life
• The Facebook Revolution
7. BRANDS:
A FORM OF SELF-EXPRESSION
• Strong sense of brand awareness
• More the brand fits into their lifestyle, the more
inclined to personally identify with brand
• 86% share their brand preferences online with their
social networks
• Strong sense of brand loyalty
• When they find a brand they like, 70% keep coming
back
• After a bad experience? Extremely difficult to win
them back *Edelman The 8095 Exchange Study
Conclusion: Does your customer experience brand drive loyalty?
8. EXPRESSING SUPPORT FOR A BRAND IS A
PERSONAL STATEMENT
The Brand’s
• Authenticity
• Integrity
What matters most to Millennials?
• Ability to deliver
• It’s deeper than for other demographics, because the
online expression of support for a brand is a permanent,
personal reflection of Millennials’ values
• It comes down to trust
• Access to online information increases/decrease that trust
• Prefer to do their own research online vs. read/believe a
brochure from a company
• THIS IS WHY SOCIAL MEDIA MATTERS TO BUSINESS
QUESTION: What’s being said about your company online?
9. MILLENNIALS:
THEY SPEAK THEIR MIND ONLINE
• A company’s reputation can
matter as much as the
performance of its products*
• 34% bought from a brand
because of the social or
political values of the company
• 90% tell their family & friends
NOT to purchase the
company’s products when they
lose trust or respect for a brand
*Source: Pew Research survey
10. MILLENNIALS:
WHY THEY PURCHASE
• 55% said price was most
important reason
• But price is the least important
in building their trust* • 33% looked for brands who made a positive
impact on the world
• 30% cared more about product • Civically minded, propensity to combine
quality belief with action
• 80% donate time to non-profit causes;
• 20% cared more about the believe companies should implement
range of products offered employee volunteer programs
• Look for brand’s social & environmental
commitment when deciding where to shop
& recommend its offerings
Source: *Pew Research Survey **Deloitte Banking Study • More likely to switch banks based on their
charitable investments**
QUESTION: Does your brand elicit trust?
11. MILLENNIALS:
WHO THEY
TRUST http://itsmyturntocook.files.wordpress.com/2009/12/claire-serving-cottage-pie-to-the-family.jpg
• Family- 2x more likely than any other generation to use family counsel as
the most influential factor in making choices around money
• Friends
• Bloggers that document their personal experiences with products
• Consumers who write real reviews
• Why? They have personal experience with the products or brands
QUESTION: Are you asking your customers for recommendations?
12. MILLENNIALS:
SOCIAL NETWORKS & TECHNOLOGY ARE THEIR LIFE*
• 75% created a profile on a social networking site *Pew Research survey
• 55% visit those sites once/day
• 60% connect to the Internet wirelessly when they
are away from work or home
• 88% text each other
• 74% new technology makes their life easier
• 50% use it to be closer to their friends
• 65% are disconnected one hour or less a day
QUESTION: Are you monitoring what is being said about your company?
14. MILLENNIALS: TAKING ACTION IS A CORE VALUE*
• 70% recommend their favorite brands to
family and friends
• 47% write about good online experience
• 40% have criticized a brand on a social
network
• 70% would create a video and post it
online or write a review about their
experience with a company
• 20% have posted a video about
themselves on line
*Edelman The 8095 Exchange Study
Question: Does your brand inspire action in social media?
15. MILLENNIALS: THEY SHARE THE GOOD & THE BAD
If a Millennial has a problem with a company, instead of calling
customer service:
Source: http://www.sodahead.com
• They text 5 friends and share
their frustration on Facebook
• The friends share the story
with their peer groups
• Friends comment on the
incident and share their own
stories of disappointment
• A single event spreads like When dealing with a customer service issue,
wildfire <10% would call customer service.
Question: What is your customer experience like?
16. MILLENNIALS: WORD-OF-MOUTH IS A MAINSTAY
“Focus on making an excellent product.
If you do, then all of your marketing will
be true and most of the marketing will be
done by us.
We are all looking for great products and
brands to share with our friends.
I want
The best way to help us spread the word to trus
t you
is by first creating a great product.”
*Edelman The 8095 Exchange Study
18. BANKS: 2011 GLOBAL BANKING SURVEY:
A NEW ERA OF CUSTOMER EXPECTATION
Source: Ernst & Young Study of 20,500 participants
19. BANKS: HOW DO THEY STACK UP MILLENNIALS?
• 30% have 20-40%
Millennials as customers
• 31% have a Millennial
Strategy
• 37% had no Social
Media Strategy
• 63% said they planned to
do something with Social
Media
*Source: Oracle Financial Services Study
20. MILLENNIALS: THEIR VIEWS ON MONEY
• Millennials generally: Because Baby Boomers are drawing
• Love to spend from their savings, to generate revenue
• Don’t have long-term Banks need to reach out to Millennials
investment plans
• Most popular banking products
are credit, debt cards, loans
(school and mortgage)
• Want assistance to manage
their money
• Recommend their banks to
family & friends
• Mobile banking is a preferred
banking channel
*Source: Oracle Financial Services Study
21. BANKS NEED A NEW WAY TO APPEAL TO CUSTOMERS
The old playbook is out
• Millennials don’t have to
rely on product marketing
information
Banks need to:
• They can tap the whole • Relocate product marketing
world of data to make budgets
purchase decisions • Find different ways to
communicate with Millennials,
directly and indirectly through
their social networks, colleagues
and influencers…
22. MILLENNIALS:
WANT HELP TO REACH THEIR PERSONAL GOALS
• They pay attention to brands that impact their goals
• Affording house, buying a car, raising children, going to school…
• Are financially guarded; generally have conservative asset plan allocation
May be due to:
• Life-defining events they have witnessed
• Have more access to financial information
than predecessors at similar life stages
• Don’t feel they have enough financial
education to manage their investments
• Bank’s products & services seem complex
Source: Deloitte Study
Question: How do your services help Millennials reach their goals?
23. RECOMMENDATIONS
Step 1: Accept the Millennial Generation
Don’t say, “In a few years they will be like us…”
Millennials are…
• On the leading edge of trends that they & older generations follow
• Online banking
• Resistance to traditional marketing
• Concern for the environment
Strategies that effectively meet the needs of Millennials provide
benefits for other demographics & generations
*Source: Deloitte Financial Services Study
26. RECOMMENDATIONS
Step 2: Customer Experience Channels–
Integrate Them Well
• Conduct customer experience – day in the life of –
studies of your channels
• The trend is to move from just branches: offer: the
branch store, the online store, mobile store, face-
to-face & social networking store
• Combine store experiences in the same
transaction: research in one place, educate
themselves in another, purchase in another…
• Make it easy to navigate / switch channels
• Provide a consistent customer experience across
all channels
*Source: Deloitte Financial Services Study
27. EXAMPLE:
ING DIRECT
Created Drop-in
Café’s in LA, NYC,
Philly, Wilmington
• Focused on networking and learning
• Branches became a social networking venue where friends & family
gather, even if they aren’t make a financial transaction
• Once Millennials developed a relationship with the bank, they were
more likely to do banking there
28. EXAMPLE: CAPITAL ONE
• Opened a branch in Manhattan
• Shares the space with
Starbucks
• Convert loose change in the
bank’s bean counter machine
to get a coffee
• Coffee drinkers can enjoy Starbucks, watch the news on TV and
go do a financial transaction with a Capital One Advisor
• A bank becomes a place to linger, talk, socialize and bank
29. RECOMMENDATIONS
http://www.helpfulstrangers.com
Step 3: Marketing As Education vs. Telling
• Millennials lived in an information-intensive, connected world
• Move from product marketing relationship marketing
• Provide practical information to build relationships
• They are skeptical of traditional advertising; rely more on the
advice of friends and family
• Create blogger outreach programs to influential Millennials
• Always better to have the voice of the customer provide testimonials for this group
*Source: Deloitte Financial Services Study
30. EXAMPLE:
ROYAL BANK OF CANADA
• Created a contest with User-
Generated Content
• Grand prize: $5,000 for best picture
• How $1,000 would improve student life
• Go to RBC’s Facebook Fanpage
• Download and print an Arbie template
• Find photo opportunities to show Arbie
how $1,000 would improve their student
life
• Learning to surf
• Travelling to Europe
• Buying a 30” computer monitor
• Upload the pictures and vote!
31. EXAMPLE:
ROYAL BANK OF CANADA
Leverages social media
• Community Manager
• RBC Advice Center on
Facebook
• iPad Educational App
• Mobile App Information
• Daily Advice Game…
32. EXAMPLE:
ROYAL BANK OF CANADA
Leverages social media with
an RBC Advice Center on Facebook
33. RECOMMENDATIONS
Step 4: Make Products Simple
• Millennials prefer simple, practical, affordable banking services
• Show you understand they are just starting their financial lives
• Use social interactions to draw attention to products
• Appeal to doing good things; make dreams come true!
*Source: Deloitte Financial Services Study
35. EXAMPLE:
ROYAL BANK OF CANADA
Information about Learning Money app for iPad on Facebook page
36. EXAMPLE:
ROYAL BANK OF CANADA
• Sponsored Filmmakers Competition
• Help make dreams come true
37. Do something good
EXAMPLE: SUN TRUST
• Campaign: Seeing Beyond The Money
• Actively support organizations and activities that
share our commitment to enriching and strengthening
the communities in which we live.
EXAMPLE: WACHOVIA
• Central Piedmont Community College (CPCC)
received a $250,000 grant
• Provide retraining and counseling for displaced
professional and paraprofessional workers.
39. START A CONVERSATION
Invitations designed to
suit your brand
Industry leading incentive
plan to drive response
count
Multi-mode feedback
collection to listen to your
customers
39
40. CHANGE EMPLOYEE BEHAVIOR
Commit to action
Focus on what’s most
important to customers
Deliver great experiences
Improve overall satisfaction
score up to 5x more than
traditional CEM
40
41. SUSTAIN THE GREAT EXPERIENCES
Leverage the power of your
internal community
Build best practices through
social sharing
Continually improve the
experience
+8% focus area improvements
41
42. FOCUS CYCLE FOR ONGOING IMPROVEMENT
Eliminate the need for
Select complex reports
Share Commit
Focus locations on what is
most important for their
guests
Review Act
Help location managers
Measure know what to fix and how
to execute
42
43. GIVE CUSTOMERS A VOICE TO RECOMMEND
Convert Customers to Amplify the Voice of Your
Find Satisfied Customers
Advocates Advocates
43
44. A SIMPLE PROCESS TO DRIVE ADVOCACY
Customer completes survey Customers with high are invited to make a Customer makes a personalized recommendation
recommendation
Email Post
Facebook Post
Twitter Post
Recommendation is shared via Facebook, Twitter and email
with all of the advocates’ friends
44
45. THE IMPACT OF ADVOCACY
100+ Brands 20%
accept invitation
Email Post
Facebook Post
Positive experiences
shared with over Over
110,000,000+ 1,000,000
Twitter Post
advocates found
Friends and Followers
45
46. WORD OF MOUTH ENDORSEMENT ON SOCIAL MEDIA
Personalized
message from
Primary advocate
marketing
message
Secondary
marketing
message
48. Social media ROI
Resources and information on social media strategy & other topics…
Books and Whitepapers: Videos:
How To Build a Business How To Calculate the ROI How Social Media Benefits
Case for Social Media of Social Media the Whole Company
http://www.youtube.com/watch?
http://www.youtube.com/watch? http://www.youtube.com/watch? v=e1SfQaMSbH0&feature=relmfu
v=_59iJrYanw0&feature=relmfu v=UhUO30VRN1M&feature=relmfu
Dr. Natalie Petouhoff
Scan this QR Code for
@DrNatalie
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