Retaining the Next Generation
Numerous news articles have focused on marketing to Generation Y “Millennials”, who now have an age range between 24-41 years old. Now is the time to look to what’s coming next, the Millennial children.
Members of Generation Z (or simply “Gen Z”) are beginning to enter adulthood and should be a focal point for banks. Gen Z is comprised of 23-million individuals in the US alone. They are exponentially joining the workplace in droves and will soon displace Gen Y in workforce numbers. You may not have heard anything about them, due to their lack of capital, but it won’t be too long before they are an influential majority.
The most pressing focus should fall squarely on snagging and keeping Gen Z customers. Baby Boomer and Gen X customers no longer require this type of attention, as they are decreasing in workforce and total numbers. Looking to the future and strengthening your reach to Gen Z is vital in 10 or 20 years.
According to the Center for Generational Kinetics, “It’s clear to us that Gen Z is poised to change our world.” Banks who adapt to the changes that Gen Z brings are poised to outmaneuver the competition and experience years of exciting stability and growth.
Gen Z is unique from other generations, as they place a priority on how fast you can find the right information rather than on whether or not you know the right information. What does this mean? It means we live in an age where “Let me look that up” or “I will YouTube that so I know how to do it” is common practice. The premium is on how to find the information quickly, not on knowing the information. How is your bank positioned to answer this call?
To begin, let’s look at some of the simple ways your business can catch the attention of Gen Z:
(Source: Center for Generational Kinetics)
- Gen Z uses Instagram to follow the brands that they like. If you are not on Instagram, then you are not even giving Gen Z a chance to follow you. Now, your business may be on Facebook and you think that is sufficient. Well, it is for Gen Z’s parents, but not for Gen Z. Not because Gen Z doesn’t get on Facebook. They actually do – to see what their parents are saying about them…
- Now onto how Gen Z get their information. Gen Z is actually using YouTube to get information about your business. 40% of Gen Z use YouTube for research. Have you checked what is on YouTube about your business? Baby Boomers would have asked their friends and neighbors about your business. Gen X would have checked your website and Facebook. Gen Z checks YouTube. Do you have a YouTube channel? Do you have videos on YouTube? Where to start – how about a tutorial video showing your customers (and Gen Z) how to check their credit? What do you do when a credit applicant doesn’t have any credit or has negative credit? [DENIED] This is the same as how Gen Z is going to think about you based on what they find (or don’t find) on YouTube.
The focus on Gen Z should be to hit them where they live. Specific social media requires the use of smart devices, which is the new norm, and YouTube is the new Britannica (pun intended). 55% of Gen Z uses a smart device for more than five hours a day. Essentially, they live virtually, on the internet via their smart device. The tool you use to connect to Gen Z should focus on what Gen Z sees as a norm of life – information obtained through a smart device.
“Mobile First” was a term that came to play around 2000, when the idea of responsive web design was introduced. The newer iteration of this is “Mobile-Native”. This provides the ability to deliver a cleaner, simpler UX that is highly navigable and easy to understand. Provide Gen Z with the ability to conveniently use their smart device to access your bank. Virtual is where Gen Z lives and you need a “store front” that is convenient for customers to get to and access. You would not lock the front door to keep Baby Boomers away, so build a virtual door to invite Gen Z in. Think – “Build it and they will come,” and then speak with your mobile application provider.
Gen Z are your current customer’s children. In order to position your bank for success, focusing attention on connecting with Gen Z is the first step to ensure years of exciting stability and growth. Not all banks will choose to make the necessary changes needed to capitalize on the opportunities of Gen Z, but those leaders who adapt to the change Gen Z brings are poised to succeed.
www.businessinsider.com”, “BANKING AND PAYMENTS FOR GEN Z: These digital natives are the next big opportunity — here are the winning strategies,” May 1, 2019
www.businessnewsdaily.com, “7 Things to Know About Working With Gen Z,” May 26, 2019
https://genhq.wistia.com/medias/5ya82v3id5, “3 Strategies for Engaging your Gen Z Customers and Employees,”
About Automated Systems, Inc.
Since 1981, Automated Systems, Inc. has been a leader in providing innovative core banking, digital banking, and data processing solutions to community banks nationwide. An array of integrated applications provide partnered banks with tailored, cost-effective, competitive choices. ASI delivers industry-leading technology backed by unparalleled in-house conversion, training and support teams; paving the way for progressive, top-notch customer service. ASI corporate headquarters are located at 1201 Libra Drive, Lincoln, NE 68512, 1.800.279.7312. For more information about banking solutions from ASI, visit www.asiweb.com .
About Insite Data Services
IDS data application hosting services combines secure and cost-effective core banking applications, enterprise-class servers and storage, and proven virtualization technology. IDS hosts all of the bank’s servers in secure data centers that use state of the art security systems including identity verification and biometric scanning. Insite Data Services also offers IDS On-Time, a full-service solution dedicated to back-office bank processing. These operations experts allow partnered banks to focus on their most important asset, their customers. For more information visit www.insitedataservices.com.