Jim Kasch June 5, 2015 UNDERSTANDING GEN Y IT’S MORE THAN JUST DELIVERY CHANNELS AND SOCIAL MEDIA

Identify NeedSeek Advice Independent Research Inquire / Apply Judge Response Open Account Judge Performance SHARE!Identify Need THE GEN Y BUYING PROCESS

1.Seek Advice - Serve Advisors Well 2.Independent Research 1.Branding – Use Professionals! 2.Marketing – Use Professionals! 3.ID (Information Delivery) 4.Product / Service Design 3.Inquire / Apply 1.Ease of use 2.Educate 4.Member Service 1.Staff Training 2.Delivery Channels 3.Follow Through ROADMAP

 Gen Y cares what their parents think  Seek advice from respected relatives, friends, co-workers, and other advisors (even strangers)  By serving the parents well, credit unions have an opportunity to be considered SERVE ADVISORS WELL Note: Being considered does not mean credit unions will always earn the business. This is only the opportunity to try.

 Your website  Look bigger than you are  Professional, clean, direct  Social media  Connect with others like them  Consumer reviews  What’s out there for your credit union?  Yelp!  CreditKarma.com  Epinions.com  Gobankingrates.com INDEPENDENT RESEARCH

 What’s in a name?  Lister Hill – The Hill  They see through phoniness  The brand should be relevant  Meaningful to the area or the field of membership  Imagery, colors, style  Use professionals BRANDING

Listerhill Credit Union

 Marketing is the most neglected discipline in the credit union  Get professional help  Use the tools available to you  Make the investments  Demonstrate the value to the CEO/CFO  Marketing is 50% art / 50% science  Know your audience  Attributes  Local  Socially conscious  Unique MARKETING

 They see through phoniness  They don’t want to be sold to  They want experiences  They love stories  They trust others, not you (yet) NO SUCH THING AS MARKETING TO GEN Y Google Chrome: Dear Sophie Apple Christmas

 Once referred to the credit union, Gen Y will research your organization. First stop: online  Your website is your first (and sometimes only) opportunity to impress them  Ask a 25-year old for her impression  Clean, informative, specific, easy to navigate  “Put the money on the screen” to look bigger INFORMATION DELIVERY

 KISS  Simple design, simple features, easy to understand, easy to use, easy to demonstrate value  “Why do you need five different checking accounts?”  Value  Rates must be competitive  Fees must be fair  Gen Y will pay fees for services rendered (NSF vs Courtesy Pay)  “Why do I have to pay you for returning my check?”  Growth of prepaid cards  3 x 5 Schedule of Fees PRODUCT / SERVICE DESIGN

 They should be able to talk to you; they shouldn’t be required to talk to you  Online loan application and automated decisions  Online membership  Electronic signatures and document delivery  Must be simple and clear  Fast turn-around  Credit committee? INQUIRY / APPLICATION

 Squirrel feeding  The credit union difference should resonate with Gen Y, which values small businesses, cooperative markets, and not-for-profit business models  Share these things a little at a time – can’t overload them  “We’re not for profit”  “Our money helps locally”  Personally relevant education  Seminars and webinars  Credit Reports, etc.  Buying cars  One-on-One counseling EDUCATE

 Sales training is important, but it should be objective-based  Centered on enabling the member to make his/her own decisions  Deep product knowledge is a must  Keep it simple STAFF TRAINING

 Electronic account access is critical  Breadth and depth of offerings  ATM and shared branch networks  Branch support is important  Many tipped based workers  Telephone support  50% of DCU members call monthly DELIVERY CHANNELS

 Be accurate  Every need is managed independently; there is no automatic loyalty  Say as you do; do as you say  Be honest and transparent  Be available  Manage social media sites actively FOLLOW THROUGH

 Don’t hide  Respond appropriately and quickly  Hope to be included in the conversation SOCIAL MEDIA

AMERICA’S CREDIT UNION