Young consumers on mobile devices
Generation Z, those born after 2000, now account for more than 25% of the population.
They're a dynamic generation, still growing and defining exactly what mark they'll have on society.
As credit union leaders, we can't afford to let this generation slip into adulthood undetected. Before you start copying and pasting your millennial marketing strategy, consider these statistics from Vision Critical:
- 60% of Gen Z values product over experience, as opposed to only 77% of millennials who value experience over product
- Gen Z watches two times more video than any other generation
- 25% of Gen Z post original video content to social media on a regular basis
These kids aren't like the ones who came before them.
They don't want to just experience your brand. They want to help build it.
In order to reach Gen Z – and create lifelong loyalty – you must start now by offering creative collaboration. Yes, their preferences will change. Yes, some of them are still in diapers. But one in five of them also already has a relationship with Bank of America.
Consider what's ahead for Gen Z. Grade school. High school. First cars. First jobs. College acceptance. Starting careers.
As Gen Z is formed by these experiences, they themselves will be shaping society. This unique generation will build products and services over the next three years that we can't even conceptualize today.
As our team audits the effectiveness of marketing materials for credit unions around the country, we've found that most credit unions aren't prepared to reach the next generation. They don't understand the creative nature of Gen Z, and even if they do, they don't know how to leverage it.
Here are four tips for using creative collaboration to establish Gen Z loyalty during these key life-defining moments.
1. Create a platform for storytelling and story sharing.
Gen Z rarely distinguishes between online friends and "real life" friends. They simply want a place to belong and express themselves. Why couldn't that place be your credit union?
Use your social media presence and your mobile app as places for these younger members to share their stories and build connection.
2. Inspire entrepreneurship.
Studies show that members of Gen Z are 55% more likely to start their own business than millennials. These kids are hungry for contribution.
Sponsor entrepreneurship clubs at local schools. Offer scholarship programs to entrepreneurship higher education programs. Host job fairs with local entrepreneurs.
3. Offer collaboration with and access to executives.
More than any other generation, Gen Z values transparency. They don't just want to see behind the curtain – they don't want the curtain to exist. According to McKinsey research, this generation is "pragmatic and realistic," so they won't have any problem leaving an institution for what they see as questionable practices.
Introduce them to your team. Put a college student on your board of directors. Let them see your executives at work and participate in strategic conversations.
4. Use original video.
The average attention span of a Gen Z-er is eight seconds – less than that of a goldfish. Use video to connect with this generation that watches far more than it reads.
Use organic video (meaning no stock footage) on your social media and on your website. Be authentic in your videos. Use your smartphone and don't pay for expensive videography. The more down-to-earth the better.
More than 40% of working Gen Z-ers (teenagers) are unbanked. They're keeping their money in a shoebox or a penny bank. The opportunities for financial institutions are enormous. If reaching Gen Z is part of your credit union's strategy (and it needs to be eventually) then creative collaboration must play a role in your marketing.
Elizabeth Arnold Elizabeth Arnold is an Account Executive for On the Mark Strategies. She can be reached at 214-538-6829 or elizabeth@markarnold.com.
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