Engaging Your Credit Union's Gen Y Members with … Gamification

 

For credit unions big and small, it doesn’t seem to matter how many new members were brought in, how many points the loan-to-share ratio increased or even the number of new products that are in the pipeline – they continue to ask the same question: “With an aging membership, how do we get younger?”

Chances are good your credit union has launched (or is considered launching) a strategy to jumpstart that process. Having grown up in the Digital Age, Gen X and Gen Y are a different type of member. They have information available immediately at their fingertips that almost certainly involves some sort of social media platform. The bottom line is, they are engaging and interacting with companies of their choosing almost daily. What this new generation needs are the tools and support to succeed in this new economy – preferably from credit unions. 

Leveraging Technology

It is important for credit unions to take advantage of the technological trends available today or they risk falling behind and missing a golden opportunity to be the long-term financial partners for this next generation of members. One such trend is: Gamification. Gamification is the use of games in a non-game context to boost user engagement, ROI, education and more. 

According to eWallStreeter.com, gamification is expected to be used by 70 percent of the world’s largest companies in some form in 2014 and is projected to generate $2.8 billion in consumer spending by 2016.

• Credit unions can utilize gamification as a fun tool to:
• Create more frequent member engagement
• Inform and cross-sell more products
• Build positive brand awareness and loyalty
• Increase members’ financial awareness
• Create the desire to improve one’s financial health
• Motivate staff members

And in this online world of gaming and mobile, the gamification of personal finance seems like a natural progression. That being said, the marriage of personal finance and gamification needs to be a somewhat cautious one. Like in everything credit unions do, their members’ needs should be put first – not the credit union’s need to market its products and services. 

Start Where?

Integrating game mechanics into your credit union’s products and programs is not has hard as you may think. You can create a simple friend and family referral program and set up leaderboards, identify your strongest advocates and then reward members in different ways. You can also create internal competitions and reward the employee who generates the most leads for a certain product you’re marketing. 

Financial products utilizing gamification are also steadily increasing. The Save to Win program is a great example of a financial product that uses the motivation of winning prizes to get members to save more. As of October, 62 credit unions across Michigan, Nebraska, North Carolina and Washington have offered the program to the tune of 16,654 accounts and more than $36 million in savings. Another solid example is SaveUp.

SaveUp is an online program that uses game mechanics and real prizes to not only motivate credit union members to save money and pay down debt, but also to provide credit unions with a marketing tool to deepen their share of wallet and increase member engagement. Since late 2012, 40 Michigan credit unions have implemented SaveUp to engage their younger membership and market their financial products and services.

The use of gamification can help credit unions engage members, build stronger relationships and, of course, bring in a new generation of tech-savvy members who are looking for the latest and greatest ways to look at their finances. However, be careful that whatever program you implement does not come off as gimmicky or too promotional. Make it purposeful and authentic – but, of course, keep it fun!

Whatever program your credit union decides to start with, we promise that your members will thank you for bringing a little gamification fun into their lives. And who knows? Your credit union could end up reaping the benefits. This path can help credit unions reach an entirely new audience and develop a stronger relationship with these new members.

Help Your Credit Union Stand Out from the Crowd – Part 2: Wooing Gen Y

by Amy Neale  

In response to CUNA’s Member and Nonmember Survey Results, we thought we’d address three distinct ways you can help your credit union stand out from the competition. To do each section justice, we’re delivering it to you over a three-part blog series. Welcome to Part 2. 

Wooing Gen Y
When it comes to wooing Gen Y/Millennials, credit unions have a long way to go. According to the CUNA Member and Nonmember Survey, respondents ages 18 to 24 were just as likely to recommend credit unions to others (31%) as they were to recommend banks (32%). Combine this with the aging membership issue most credit unions are facing, and you’ve got a demographic that needs more attention.

Jon Haller, CUNA’s director of corporate and market research points out that most banks get an edge over credit unions when Gen Y hits college and becomes aware of the banks co-branded credit and debit cards. Haller perceptively points out that it all depends on who gets to that generation first. So, what can your credit union do to stand out from the crowd and get there first? Two words: financial literacy.

A recent Wells Fargo survey found that more than half of Millennials say debt is their biggest financial concern. And an impressive 78% said they learned “a great deal” or “somewhat” about personal finances from their parents. The best approach to offering financial literacy programs to your younger members would be to offer it to them and their parents. This could come in the form of financial education articles on your credit union’s website, savings clubs that target Gen Y or even videos or podcasts on your website that discuss various financial topics.

In addition to boosting your credit union’s financial literacy program, you might want to consider developing a marketing program that appeals to younger generations; adding products like first-time auto loans or credit cards for members just starting to establish a credit history; or create financial seminars geared toward the Gen Y demographic. Plus, a strong social media strategy and presence can go a long way to wooing those Millennials. 

CU Solutions Group can help you woo Gen Y with its Financial Resource Center, youth websites, youth campaigns, podcasts and social media expertise. 

Bringing Gamification to Your Credit Union

In general terms, gamification has been a part of the credit union world for years now, although it wasn’t until recently – when gamification became the buzzword – that there’s been a direct link of the two. Gamification is the use of games in a non-game context to boost user engagement, ROI, education and more. It’s the education aspect of gamification that credit unions have embraced with their online products and services such as youth savings clubs.

Even though the term gamification was first coined in 2002 by British computer programmer Nick Pelling, it didn’t really catch on until 2010. According to eWallStreeter.com, gamification is expected to be used by 70% of the world’s largest companies in some form by 2014 and is thought to generate $2.8 billion in consumer spending by 2016.

While becoming a “mayor” in FourSquare and earning reward points for credit card purchases have solidly set the stage for company and brand gamification, financial institutions are on the playing field as well. And in this online world of gaming and mobile, the gamification of personal finance seems like a natural progression.

That being said, the marriage of personal finance and gamification needs to be a somewhat cautious one. Like in everything credit unions do, their members’ needs should be put first – not the credit union’s need to market its’ products and services. Although the overall ROI of an online endeavor is a major consideration, so should a member’ trust in their credit union.

Still wondering if you should dive into the gamification world? Here are a few things it could do for your credit union:

• Modernize its image
• Attract the Gen Y and Gen Z demographics
• Increase quality website traffic
• Motivate members to make smarter financial choices
•  Encourage members to consider additional credit union products and services 

     Where to start? There’s no need to reinvent the gamification wheel at your credit union, there are plenty of websites out there that you can partner up with. A few examples are Mint, SaveUp, Payoff and the kid-friendly website Playmoolah. Wherever your credit union decides to start, we at CU Solutions Group promise that your members will thank you for bringing a little gamification fun into their lives. And who knows? Your credit union could end up reaping the benefits.

 

Credit Union Growth Through Gen Z and Their Parents

by Amy Neale 

It seems that any credit union marketing article you read these days focuses on Gen Y. Rightly so – they’re at the point where they’re getting loans, mortgages and saving for the future. But you might want to consider expanding your reach to grab Gen Z. Gen Z age ranges vary depending on what you’re reading, but let’s focus on those born between the years 1992 and 2010. And although some of Gen Z may still be learning to tie their shoes, it doesn’t mean that they shouldn’t be on your credit union’s marketing radar as a target demographic.

Gen Z, also known as “digital natives” and the “bubble wrap” generation – thanks to their helicopter parents – are truly unlike any generation that’s come before them. Theirs is a time of a new normal. They were very young or born around 9/11, the burst real estate bubble and the U.S. and global banking crises of the mid-2000s. They will probably never know the term pension, know too well about the Great Recession and their lives have been shaped by more than a decade of economic uncertainty. Their mindset is more like the children of the ‘30s and ‘40s than Gen Y before them.

What does this mean for your credit union? That Gen Z is already thinking about money, their financial future and looking for a financial institution that isn’t just there to hold their accounts, but one that will also serve their growing financial needs, tend to their financial education and give them the tools to guide them into a secure financial future. If that doesn’t sound like a credit union, what does? 

Filling the Connection Gap

These “digital natives” are the first generation born into a digital world. A world of instant gratification thanks to instant music on their iPod, constant Internet access on their smartphones and immediate book downloads on their readers and tablets. But this technologically-dependent lifestyle has left them craving “real” connections. The Consumer Trends Survey from Fiserv Inc. uncovered that the younger the generation, the more likely they are to seek out branches or use call centers at their financial institution. Their tendency is to look for that one-on-one connection when it comes to more complex transactions.

Another survey, this one from TD Ameritrade, discovered that Gen Z mainly worries about affording college (39%) and having a student loan balance (39%). But 55% of those questioned said that if they had an extra $500 that they would save it. These are all ample opportunities for your credit union. And yet, according to a CUNA Credit Union Environmental Scan, two-thirds of credit union members with children at home haven’t signed any of them up for credit union membership. That’s 21.4 million nonmember missed opportunities under age 18 living in members’ households (from the 2011-12 CUNA Survey of Potential Members).

Keep in mind – it’s easier and less expensive to reach these young potential members through their parents than to stand out from the crowd once they’re grown. Here are a few recommended places to start:

• Youth programs – Whatever youth age group you’re targeting, there’s a youth club/website out there to capture them. Just make sure the program is age-appropriate and not talking down to them. It should also financially position them to move into the next age group. Savings clubs are a great place to start. (Check out our Growing Members program!)
   
• Financial calculators – Any online financial tool you can provide Gen Z and their parents so they can make solid financial decisions together helps build confidence in their choices and your credit union.
   
• Financial education – While parents are usually the first place kids go for their financial education, having a youth financial literacy program illustrates to kids and their parents that you have their best interests at heart. Being authentic goes a long way with Gen Z.
   
• A younger credit union – What’s the average age of your board members and staff? We’re not saying fill your board with 10-year-olds, but a member or two from Gen Y is a good place to start. And maybe think of having qualified Gen Y employees in management positions, not just as tellers, to make your branches more youth-friendly.
   
• Strengthen online presence – As with Gen Y, Gen Z does everything online and/or mobile. So make it easy for them to share – they were born to! Encourage social media interaction, good or bad. Just make sure all connections are real and yes, authentic. And make sure your website it mobile-optimized – because that’s how most of Gen Z is going to view it.
   
• Think student-run – What better place to start than where Gen Z spends their days – at school? Student-run credit unions get the kids involved and can educate them about credit unions and finances all at the same time.

Make it your credit union’s goal to be this generation’s first account, first car loan, first credit card and everything in between. You’ll be firmly in place as their primary financial institution when they go away to college and need a student loan or graduate and need their first mortgage. It all starts with the first step of marketing to them through their parents while they’re still young and at home.

Related Services:  Youth Campaigns, Growing Members Youth Sites, Social Media, Financial Calculators, FRC, Marketing Campaigns, Mobile Websites, SaveUp 

5 Signs Your Credit Union Needs a Member Analysis

No matter the organization, it’s common to cruise on the “business as usual” mode dealing with the day-to-day work without thinking about the big picture. Without thinking of ROI or overall effectiveness. But chances are, when you do look up you’ll discover that your results aren’t what they used to be.

If this is the case at your credit union (no worries, we don’t judge), then it might be time to consider taking a step back to evaluate your current status with credit union member analytics. It’s easier and more affordable to grow from the membership base you currently have than to woo new members. Plus, the data you collect from member analytics can help you make more concrete marketing decisions.

Still not sure member analytics are for you? To help you decide, we have five signs your credit union may need a member analysis.

1. The credit union down the street always seems busier than yours.
   
   Does it seem like the competition, whether it’s a nearby bank or credit union, always has a leg up? That they’re always one step ahead with membership, marketing and revenue? It seems like you offer the same products and services and competitive rates – so what gives?
   
   Member analytics can help you identify where your credit union’s growth opportunities truly are. You can uncover which marketing segments you have already strongly penetrated and which ones have room for growth. Credit union member analysis can give you the details you need to make improvements and keep your branches busy.
    
2. You’re not sure who your most or least active members are.
   
   Sure, your credit union wants to retain those members who hold the majority of its assets – but do you know who these members are? Our credit union experience has found that for most credit unions, those with the largest amount of assets make up a small percentage of its actual membership. On the flip side, you should also determine who your least active members are so you can target them for increased wallet share.
   
   Knowing which members you want to focus on retaining and those who need to increase their activity is all possible with member analysis. This data can also help you better focus your marketing dollars where they’re needed and avoid sending the same messaging to all members – who aren’t necessarily in the market for the same products or services.
    
3. Most of your members use only one product and/or service.
   
   It’s no secret that it’s significantly easier to expand a relationship with a current member than it is to gain a new one. The ultimate goal, of course, is to be your members’ primary financial institution for everything from checking and savings accounts to loans and investments. And the more products/services your members use, the less likely they are to stray.
   
   The best way to meet all your members’ financial needs is to first discover what those needs are. Not to sound like a broken record, but a credit union member analysis is the best, most effective way to find out what makes your members tick and uncover their level of commitment to your credit union. Member analytics will have the answers.
    
4. You’re looking to market to Gen Y, but don’t know where to begin.
   
   Sure, Gen Y (anyone born in the mid-80s to mid-2000s) is the coveted demographic to target – but what’s the best way to approach them?
   
   To start, find out the size of your current Gen Y credit union membership. You may already have a substantial portion of your membership fitting this age range and don’t even realize it. Member analytics can break down your membership not only into age ranges but income levels as well. Instead of targeting new Gen Y members, you may only need to cultivate the ones your credit union already has. 
    
5. Your last marketing campaign wasn’t as successful as you thought it’d be.
   
   If yours is one of the credit unions that benefitted from Bank Transfer Day and all of its afterglow, your recent focus may have been on growing new membership. Instead of, or in addition to, marketing to new members you may want to contemplate cross-selling to your existing members.
   
   To effectively market to your current members you need to harness the power of member data. It will help you uncover vital information like how much they can afford, their level of loyalty and what communities you’re actually reaching. Member analysis will help uncover this vital information and help better position your efforts with any upcoming marketing campaigns.

You’ve Got the Power

Your credit union already has the power to connect with its members and grow its wallet share – the power of data. Member analytics can help give you a better understanding of the average age, income, home ownership and ethnic make-up of the communities you serve.

Everything you need to know about your membership is already there, you just might need some help uncovering and interpreting it. CU Solutions Group’s marketing research experts can perform a custom member analysis, at almost any budget, for your credit union to help it tap into its power.

Related Services:  Member Analytics, Marketing Research 

Connected and Impatient – How Credit Unions Can Serve Gen C

The millennial generation, known as Gen Y, is also known as Gen C—as in “connected.”

Just how many of them are connected? A recent report published by Pew Internet & American Life Project states, “Seventy-one percent of Americans between the ages of 25 and 34 now own a smartphone as do 67% of those ages 18-24 and 54% of those ages 35-44.”¹

Let’s face it. We rarely, if ever, spot a member of that generation without his or her phone in hand. Texting friends, making calls and finding information online are all ways of staying connected to the rest of the world. The downside is “that the impact of networked living on today’s young will drive them to thirst for instant gratification, settle for quick choices, and lack patience.”²

If You Can’t Beat ‘Em …
You can use this generation’s connectedness and impatience to your advantage. Give them the tools they need to do business with you—whenever they want and wherever they are—without always having to come into a branch. Consider these tools:

• Online Membership Application – Completing paperwork is “out.” Online applications that can be completed quickly and securely are “in.” Make it simple to apply for membership. After all, you want them to join.
   
• Secure Live Chat – Answer questions and provide information in real time. It’s a “strike while the iron is hot” tool. Someone viewing your site is interested; be prepared to answer any questions that pop up. Remember that good secure chat programs come with the “send an email after business hours” feature. That’s slightly delayed gratification—but only by one business day!
   
• Mobile Site – Your mobile site makes your credit union portable; members can take you with them. A mobile version of your site lets your members find the information they need at the moment it’s relevant. (Think: I’m shopping for a new car and want to check my CU’s loan rates.)

Tools that help members connect with you are easy to implement. So, think like a member of the generation you’re trying to serve and ask yourself, “What are we waiting for?”

¹Smith, Aaron, Nearly Half of American Adults are Smartphone Users, Pew Internet & American Life Project, March 1, 2012, http://pewinternet.org/Reports/2012/Smartphone-Update-2012/Findings.aspx, accessed March 23, 2012.

²Anderson, Janna and Rainie, Lee Millennials will benefit and suffer due to their hyperconnected lives, Pew Internet & American Life Project, February 29, 2012, http://www.pewinternet.org/Reports/2012/Hyperconnected-lives/Main-findings/Negative-effects.aspx, accessed March 23, 2012

Related Services: Mobile Sites, BoldChat, Social Media

Gen Y at Work in Credit Unions

More than likely, you have received an email or birthday card that begins with “You Know You’re __ (fill in the blank with your age) When …” followed by a list of pop culture references, fashions or fads that contributed to the decade of your age group. But have you ever thought about what contributed to the values and expectations we associate with the generations in the workplace? Factors such as growing up during the Depression, the profound effect of the civil rights era, cultural and familial experiences of our childhood, and the invention of the Internet all play a part. Without a doubt, those values and expectations are brought into the workplace.

Whether you call them Millennials or Generation Yers, they are 82 million strong and in less than 5 years will make up almost half the workforce. Although stereotypes are oversimplified characterizations, it’s important we recognize the common traits, creating a foundation for us to understand and acknowledge the differences which appear in the workplace.

	Baby Boomers	Generation X	Generation Y
Birth Years	Born between 1946 and 1964 (between 47 and 65)	Born between 1965 and 1980 (between 31 and 46)	Born after 1980 (younger than 30)
Population	Over 78 million	Over 58 million	Over 82 million
Personality traits	Competitive, independent, social consciousness, workaholics	Cynical, pessimistic, “pay your dues” attitude, self-reliant, critical, knowledgeable	Pragmatic, naturally optimistic, open to change, independent, experimental, rewarded for participation and effort
Cultural events	Marched for equal rights and to end the Vietnam War Birth control for women who chose to delay motherhood and pursue education/ careers	Latchkey kids growing up with mom in the workplace Divorce rate doubled	Raised to be well-rounded - get good grades, play an instrument, volunteer Grew up with diversity in terms of preferences, attitudes and ethnicity
Technical Skills	Acquired midway during working career, some resistance to change	Technologically astute, obtain transferable skills for job security	Tech savvy and tech dependent, no fear of technology
Trust	Trusting of institutions	Low trust in institutions	Little trust in business institutions and the government
Wealth	Wealthiest generation, age-defying lifestyle, idealistic	Materialistic, economical, experienced multiple recessions	Traditional values with reference to spending and saving
Communication & Relationships	Personal interactions and relationships are important	Communication of open, honest dialogue	Keeping promises matters, desire respect

Communication
So, if we’re a Baby Boomer or Gen Xer, how do we communicate with this generation? We know that Gen Yers grew up with technology at their fingertips from the time they drank out of their very first sippy cup. The toys and games they played provided instant responses, and often they played independently as they held Gameboys in their hands. Similarly, they prefer communication through technology. According to a 2010 Millennial Inc. survey of 1,000 Gen Y employees, three-quarters have profiles on social networking sites. Even email is outdated communication for Gen Yers, so they may respond more quickly to a text message or instant message (IM).

The key is speaking the language and using the correct media to connect to your Gen Y employees. Gen Y employees value relationships, but they don’t need face-to-face encounters to build them. Find out how they communicate. Do they prefer text messages over emails? Then, create diverse channels of communication to build that relationship with them.

So what about the reverse? What if a Gen Y employee is in a customer service role where they are required to have face-to-face encounters with customers? Gen Yers may need some additional training from a mentor to sharpen their face-to-face verbal communication skills.

Managing and Feedback
Gen Yers grew up participating in soccer games with constant encouragement and rewards for effort. Parents commonly shifted their schedules around to accommodate their multiple activities. Now Gen Yers are in the workplace and often have the same expectations from management, which may result in offering more flexibility in the workplace. Their focus is on getting the work done, not workplace presence, as they can complete work anytime, anywhere with technology.

As a manager of Gen Y employees, you can also be a student of your young employees. You may be the most experienced and have the longest tenure, but you are no longer the smartest one in the room. Learn from their technical skills and show acceptance of their energy and enthusiasm. They’re impatient and aren’t used to having to “pay their dues,” so help balance that by providing changes in their work projects, roles and responsibilities. Gen Yers expect communication and constant feedback, including being “in the know” on executive decisions and developing business strategy.

In the end, the Millennials are here and they are having a strong presence in the workplace. Let’s do our best to embrace them, doing what’s right for our business culture to succeed. As they would say, that would be “XLNT”!

Related Services:  Performance Management, Compensation Management, HR Consulting Services