Pub. 7 2018 Issue 1

l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s 20 3 KEY STRATEGIES FOR ACQUIRING AND RETAINING MILLENNIAL CUSTOMERS By Kedran Whitten, Chief Marketing Officer, CSI T ODAY, UNDERSTANDING millennials’ complicated financial needs is a top priority for banks. But, how do they gain this kind of knowledge? Much of the existing information surrounding millennials points vaguely to new technologies and innovations, void of any concrete avenues for the engagement and retention of the largest generation of customers in America today. In noticing this lack of useable data, CSI, in partnership with The Center for Generational Kinetics, conducted a national study to learn about the habits, behaviors and needs of millennial banking customers. The results of this study offer an important step toward demystifying the path ahead for banking leadership where millennials (as well as baby boomers and Gen Xers) are concerned, and provide practical and data-driven solutions and strategies. Below are three actionable strategies to aid in your acquisition—and more importantly retention—of millennial banking customers. 1. Execute—But Also\ Communicate—Your Security Efforts While bank customers of every age, including millennials, appreciate face-to-face communication with their institutions, online banking has become nearly universal. However, in consumers’ eyes, online banking is not without its faults. At the top of the list of concerns for our study’s respondents is anxiety regarding online banking security. This is true even for millennials, who are noted for their wide acceptance of, and admiration for, technology. In fact, the study found that 44% of millennials say security concerns are the main disadvantage of online banking. But concerns about security don’t have to be the end of the story. Banks can take action to alleviate these issues and increase usage of their online tools and platforms in the process. Our study found that 47% of Gen X, 41% of baby boomers and 29% of millennials say improved security measures and fraud protection would cause them to use their financial institution’s website or mobile app more frequently. Clearly, security concerns are more than just customer complaints; they profoundly affect the bottom line for financial institutions, because customers are altering their behavior in response to them. Making continual strides toward providing the best security and fraud protection—and adequately articulating those efforts—won’t just keep current customers happy, it’s the key differentiator in attracting millennial customers. In this age of digital banking, making strides to improve security and