Today's credit unions face a unique challenge: Engaging andmarketing to members across more generations than ever before. Thisis because older generations are living and working longer andyounger generations have more spending power at an earlier age. Infact, Americans 50 years and older were responsible for $7.6trillion in economic activity in 2015. And Gen Z (those born after1997) already commands $44 billion in purchasing power, accordingto an Ernst & Young report. This means credit unions must focustheir marketing efforts across four generations at any given time(boomers, Gen X, Gen Y, and the up-and-comers, Gen Z).

The opportunity for credit unions to expand their member baseand grow their share of wallet is now. To capitalize on thisopportunity, credit unions must recognize and understand thecommunication preferences of each generation. Considering howvarious age groups prefer to receive and act upon marketingmessages can help your credit union more effectively engage withits target audience.

Baby boomers, born between 1946 and 1964, are an affluent groupthat prefers to speak with a real person and in general, is mostreceptive to phone calls. Likewise, boomers are receptive to directmarketing tactics and prefer a straightforward approach tocommunication. That said, this generation has become familiar withnew technologies and online forms of communication, which meansmethods like email and website copy are excellent means formarketing to boomers. Still, credit unions should keep messaging asclear and informative as possible and address any potentialquestions these prospective members might have at the outset toavoid causing frustration due to lack of clear communication.

Gen X, born between 1965 and 1980, is also an affluent audience,as this segment is in the peak of their earning careers. Workingprofessionals are constantly plugged into their email accounts, soemail is an excellent method for engaging Gen Xers. When creatingemail content, maintaining a consistent, yet personalized style iskey, and the goal should be to entertain and inform. Also, simplifythe formatting and send emails from a person rather than a generalinformational email address. These tips can boost engagement andopen rates.

Conversely, millennials, born between 1981 and 1997, perceiveemail as a “business-only” tool. However, millennials prefer toreceive emails with personalized offers or coupons over offerspushed via social media. This generation, known for beingtech-savvy and constantly connected to web-enabled devices, seeksto actively interact with the organizations they buy from. Theyappreciate the ability to provide organizations with insight ontheir views and ideas, which means writing and reading onlinereviews plays a crucial role in their decisioning process. Socialmedia is an excellent avenue for facilitating this. In fact, 74% ofmillennials use social media regularly to recommend services,according to Yes Lifecycle Marketing. The same holds true for Gen Z.

Enacting an effective social media strategy tocommunicate with Gen X, millennials and Gen Z should be a priorityfor credit unions and they must first understand what drives andinterests consumers in each generation. This requires sociallistening to recognize what your target audience is talking aboutand what is top of mind for them. Based on that intel, your creditunion can provide engaging content and interact virtually with itsaudience regardless of generation. This will grow your socialfollowing and encourage sharing of content. However, keep in mindthat great content does not involve advertisements, as ads arelargely ignored and perceived as spam by millennials and Gen Z.

Mobile apps are a worthwhile avenue for targeting millennialsand Gen Z. In fact, millennials are 262% more likely to beinfluenced by a mobile app compared to the general population,according to research firm, JLL. Furthermore, SMS campaigns have 15times higher response rates over email for millennials and Gen Z,highlighting the importance of leveraging mobile devices to targetthis generation. Mobile devices, like smartphones and even wearabledevices, allow members to access their account at any time,regardless of location, creating endless opportunities forengagement. With a mobile app, your credit union can sendgeo-targeted alerts and pertinent business information through pushnotifications to a member's mobile device, further deepening thatrelationship.

Gen Z is the next age group that credit unions will be taskedwith targeting, so it is critical to better understand whatmotivates them to engage and respond. Gen Zers have grownaccustomed to sorting through massive amounts of information andmust be selective of where they direct their attention. This meansdeveloping an app with a highly responsive design and targeted SMS(text) campaigns will be critical. Gen Zers refer to theirsmartphones constantly, not just for communication, but for contenttoo. The financial industry still has a lot to learn about Gen Zand it is likely that this group will further disrupt howorganizations engage with consumers.

While each generation has different “rules of engagement,” onething remains the same: Analyzing data can strengthen your creditunion's marketing strategy. By analyzing data, credit unions canuncover which marketing activities are successful and drive walletshare, producing impressive competitive advantages. Adjusting yourcredit union's marketing efforts according to each generation'scommunication preferences and leveraging data analytics to furtherhone those efforts will position your credit union for long-termsuccess.

Deidra Colvin is CMO at Baker Hill. Shecan be contacted at 317-814-1202 or [email protected].