Spread The Word To Generation Y

By Bill Klewin

You’ve assembled an excellent lending operation in your credit union. But don’t relax, thinking now that you’ve built it, they’ll come.

You’ve built it, but they’ll come only if you tell them about it.

Getting the word out doesn’t mean spending all of your energies and marketing dollars telling everyone. In addition to focusing on members who don’t have loans with you, take a good look at a segment many credit unions have overlooked: generation Y. These members, born between 1979 and 1998, already know you. But their ties probably don’t go beyond a savings account and an automated teller machine (ATM) card.

Gen Yers are a special group: Their appearance, speech, and spending habits differ from baby boomers’. But your credit union’s future depends on the boomers and the gen Yers, as they say, “hooking up.” Keep in mind, however, that in terms of reaching gen Yers, they’re way outside the box.

Product brochures in your statement mailings and in cash-back envelopes, for example, won’t reach gen Yers. That’s because they withdraw cash at ATMs, not at drive-through windows. And they receive statements online, not via the mail.

So reach them with simple, nonintrusive ads on your Web site. When they view checking account balances, pop up an ad for your credit or debit card. When they check their savings balances, pop up an ad about car loans (complete with your annual percentage rate). E-mail marketing is an option, too.

Consider this: Gen Yers are the perfect market for auto loans. Many are just getting full-time jobs and earning a steady income. They need cars. But this group won’t settle for just any old ride. They want a new Jetta, a Mini Cooper, or a Jeep. And they’re bombarded with 0% financing offers to make it happen.

Your marketing efforts need to explain how you have the better deal, and how prequalifying is easy, fast, and hassle-free.

For results, take your message to where they shop, virtually and actually. Consider partnering with a local coffee shop (one of your select employee groups, perhaps?). Also, pop up printable coupons (with your name prominently displayed) on hometown Web pages your gen Yers visit and, of course, on your credit union's Web site.

Also, print coupons on the back of ATM receipts. Mail members loan marketing materials and a coffee card—good for a cup of coffee and a doughnut—just for calling your lending call center or a loan officer and making an inquiry. Free CDs or coupons also work as a reward for their interest.

Don’t know much about gen Yers and their financial needs? Jot down some questions such as, What are your savings goals? What financial Web sites do you visit? What do you like and dislike about your financial institution? What makes a financial institution easy to deal with? Then get a clipboard and visit your local laundry or Starbucks. Survey the gen Yers you meet there. Give them your business card, and thank them for their answers with a coupon for coffee. Use the results of this data probe to put together your new gen Y-targeted marketing plan.

If you're lucky, you have some gen Yers working in your credit union. Chat with them about how to better serve their peers. Involve them in marketing, product design, and face-to-face contacts. Also discuss ways to immediately remove barriers to serving gen Yers.

Gen Y members demand service beyond traditional credit union hours of operation. Data from CUNA Mutual’s LoanLink Center show 42% of total loan applications are taken between 5 p.m. and 8 a.m., and 20% come in on weekends. Make sure your Web site or call center can handle this demand. If not, get some help to capture these opportunities.

Gen Y members also need debt consolidation, credit counseling, and credit cards. And instead of marketing retirement saving programs to them, offer solutions for saving for a mortgage down payment.

Maintain your contact, keep the message relevant, and don’t wait for gen Yers to come to you. You’ve built it, now tell them why they should come. Even better, come to them, on their turf.

Bill Klewin is assistant vice president, LoanLiner Lending Products, for CUNA Mutual Group, Madison, Wis. Contact him at 608-231-7009.