In banking, what attracts those crucial Generation Y customers?

Written by on April 28, 2014 in BillingViews, News with 0 Comments

The generation that is referred to as Generation Y, Gen Y, Millenials is becoming increasingly important in almost every market. Born between the 1980s and 2000, this is the first generation for whom the mobile is the natural access point to, well, anything. This is the generation that we used to talk about at conferences and say things like ‘yes, but when they grow up and get into business the world will change dramatically.’

That time is now.

In many markets this generation makes up anywhere between a quarter and a third of the population. In the last year, they have had a significant impact on customer experience – actually customer satisfaction – in one or two key sectors.

Banking is one. According to the World Banking Retail Report, released a few days ago by CapGemini, a quarter of countries examined reported a 10 percent or more decrease in positive customer experiences. Given that last year there was a 20 percent increase, a 30 swing in sentiment is not to be ignored.

It is the Gen Y group that is unhappy. Around 41 percent of them in North America reported they were unhappy with their banking customer experience. And as the report says,”this group’s expectations of how banks should serve their customers, particularly via digital platforms, are significantly higher than those of the general population thanks to their prolific and sophisticated use of technology.”

That must be a wake up call for not only the banking sector, but also any industry not yet fully engaged with the mobile way of life.

What is interesting is a connected poll conducted by Harris into what Gen Y people want from their banks. 78 percent of them say that mobile banking is somewhat (or more than somewhat) important to them when choosing a bank. No surprise.

But most interestingly – perhaps because it has not already been said hundreds of times by @sevendotzero and others is that a whopping 86 percent of this group, now more than active in the world of commerce, think that a bank with ‘customisable rewards programmes’ is somewhat, or more than somewhat important to them.

In the banking and mobile payments worlds, loyalty programmes are much more important to this group than we would believe in the communications world.

That is something to think about. Indeed, it might very well be somewhat or more than somewhat vital to our marketing plans.

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About the Author

About the Author: Alex was Founder and CEO of the Global Billing Association (GBA), a trade body focused on the communications sector. He is a sought after speaker and chairman at leading industry conferences, and is widely published in communications magazines around the world. Until it closed, he was Contributing Editor, OSS/BSS for Connected Planet. He is publisher of DisruptiveViews and previously BillingViews. .

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