Credit Union Marketing, Appealing to Emotion and Millennials

I recently read an article written by CO-OP Financial Services that was published in the Credit Union Times. Four Major Consumer Trends This Year focuses on opportunities that credit unions have to improve their bottom line and strengthen bonds with their membership. The trends identified were:

1. Betterment – The Human Desire for Constant Improvement
2. Ubitech – The Pervasiveness of Technology
3. Helpfull – The Age of Increased Member Expectations
4. Local Love – Community Was Never More Important

I hadn’t gotten far through the article when my mind took a detour. While all of these components are important, and in many ways essential to acclimating to a changing landscape, the philosophical concept of betterment can underscore any and all marketing efforts enacted by a credit union.

Strategy over tactic

The article sites Maslow’s “Heirarchy of Needs,” the idea that humans have several levels of requirements which fall into a hierarchical pyramid. Near the base are more physiological needs concerning basic health and safety, and near the top are ego-leaning needs regarding esteem and self-worth. It follows … Someone struggling to make ends meets is probably not all that worried about designer suits and handbags (at least we’d hope not). An individual must sufficiently meet a lower level’s needs before moving onto the next set of concerns. It’s this cyclical human drive that is at the base of our approach to virtually everything: betterment of the self.

This reminded me of another study I had recently read conducted by Filene Research Institute. Its Gen Y & Money: Overconfident and Undercapable study asserts that while 70 percent of Gen Y respondents regard themselves as having “high financial knowledge,” only 24 percent were able to answer three of five simple financial literacy questions correctly, and only 8 percent were correct on all five.

How it all adds up

All very telling, but what does it all mean? It suggests to me that these young accountholders want to think of themselves as knowledgeable; there is a desire for financial betterment. While overconfidence invites criticism and head-shaking, let’s ignore it and feed their desire for economic understanding. We don’t have to feed their egos, but we can keep their secret safe while giving them the knowledge to give their claims substance.

Consider tying financial education into content marketing when reaching out to millennials. There are simple instances where these individuals may have a rudimentary understanding of a financial process, but lack real specifics. How many millennials can accurately account for interest paid over the life of a student loan, or the benefits of consolidation? How many can clearly define the monetary implications of a 60- versus a 72-month auto loan? How many can detail the intricacies of APR and closing fees when purchasing their first home? This is knowledge that they want – perhaps part of the betterment that can help them along to another level in their hierarchy.

If you’d like to learn more about CU Solutions Group’s turnkey financial education tools, or need help developing a content marketing piece, don’t hesitate to reach out and contact us today!