Retaining Millennial Clients in the Face of Industry Disruption

Retaining Millennial Clients in the Face of Industry Disruption

Customer LoyaltyOh, those millennials! Understanding what younger generations expect from their financial services organizations, and how to build lasting relationships with them is a top of mind concern for wealth management firms and banks alike. Somehow, despite their best efforts, many financial services organizations are still missing the mark when it comes to engaging with this generation. Here are a few recent insights into the millennial mindset when it comes to money that just might help.

The Financial Brand, a great resource for financial services marketers, recently posted “50 Facts Revealing Millennials’ Mindset and Myths About Money”. This article draws from four different studies in the banking sector to understand the relationship between millennials and their finances. Key takeaways include the fact that 43% of millennials think their bank doesn’t communicate with them through their preferred channel, and that 75% of them are receptive to receiving more communications from their banks, so long as their channel preference is respected.

Clearly, communicating with this demographic requires a targeted 1:1 digital communication strategy that meets this demographic where they live – online. As we mentioned back in January, your younger clients will look right past blanket marketing efforts, but provide them with a personalized service or product recommendation right on their e-statement and you’ll get better results. Want to know more about generation-savvy marketing? Cam Marston of Generational Insights gave us some great tips on marketing to different cohorts earlier this year. And finally, back in April we shared some tips from CEB TowerGroup on reaching out to previously self-directed investors who want to work with an advisor.

One recurring theme amongst all three blogs was that these young investors want an exceptional online experience, but they also want a degree of personalized service and advice that they won’t get from a robo-advisor. If you can devise an omni-channel sales and service strategy with a strong online and mobile component, you’ll have good luck attracting and retaining millennial and Gen X clients. And if you want to see how effective an online campaign can be with your younger clients, check out the “Make Your Money Matter” campaign outlined in this post.

Why is it so essential for financial services organizations to prove their worth to millennial customers? Because millennial customers are very ready to switch financial service providers, and they are looking for innovation in the field to come from digital disruptors, not from traditional financial institutions. That’s not a reason to panic, but it is a reason to make sure you are communicating your firm’s value to your existing millennial clients. You can do so by offering them holistic financial advice, targeted multi-channel offers for products they could genuinely use, and great digital customer experiences that drive loyalty and increase engagement.

Not sure where to start? Doxim has helped hundreds of financial services organizations like yours transform their customers’ experiences and move towards targeted 1:1 multi-channel marketing. You can contact us today at 1.866.475.9876 or click here to learn more about Doxim Campaign Management.

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