Generation stereotypes and your community bank
There have been so many articles and blogs written recently on how to win the millennial banking business or how to change your bank to fit the desires and needs of the millennials. Just google “millennials and banking” and you’ll see the litany of articles with sage advice on serving this group and how to adjust your business plan, marketing and culture to cater to them.
Here’s our warning… A cookie cutter approach, and assuming that an entire generation is the same in what they want in a bank and banking services is lazy and not so smart. It’s also bad business. I’m a baby boomer and some in my group are ideal bank customers and some are a little like the embarrassing uncle you don’t tell others you know. Some boomers are successful business owners while some are still caught in their hippie and conspiracy theory roots. The same things can be said of millennials. Some have no money and probably never will. Some are very smart and successful. Some will make great banking customers and some will not.
Focus on the type of customer your bank wants, not on the “generation” they represent.
If your bank is having any serious discussions on attracting “The Millennials”, you might want to refocus your discussions to the type of customer you want to attract and not the generation they represent. Instead of designing marketing campaigns and business plans to attract boomers, generation xers, or millennials, try putting the focus where it will impact your bottom line.
Focus on the right customers
Every community bank should have a primary customer. This doesn’t mean you don’t want the business of most that walk through your doors, it just means your products, employee training, and your branch design to name a few things, should be focused on that primary customer. Whoever that customer is, it should be a profitable customer. Be the best at serving one type of customer, you’ll be great at serving all of them. If you want deposits, focus on savers. If you want commercial loans, focus on entrepreneurs. If you want mortgages, focus on home buyers. Putting your efforts into being all things to all people based on the year they were born will result in a less than average experience for your profitable customers.
Focus on the right technology
Whether you’re a millennial or a baby boomer, there is some technology that you must have. If you don’t have remote deposit via a smartphone app, a website that is easy to navigate, or a mobile friendly version of your site so customers have access while on the go, then you have a problem. There will be boomers and millennials that don’t care about the technology but there will be many who do care. Make sure your technology is not limiting your reach regardless of the generation. If your bank’s website is not appearing on the first page of a Google search for banks, or commercial loans, or mortgages in your market, you have a problem. Google doesn’t distinguish between boomers and millennials. Don’t believe us? Google it.
Focus on the right employees
If you feel you have to adjust your culture to fit the whims and desires of the millennial generation, then you don’t have an effective culture. If your bank has a culture that offers your employees a place for career focus then you’ll attract employees from all generations that are seeking a career, not a cool hangout that gives them a check at the end of the week. We’re not saying you don’t adjust your approach through the years based on demographics, technology and economics, but we are saying you shouldn’t dumb down your dress code because your newest millennial employee feels that you should “respect” him for his skills instead of “dissing” him for his need to wear flip-flops on casual Friday.
Keeping track of what matters
If you want a branch, a department or a bank that is profitable, you’ll put the focus where it belongs and not on the age range of a group of people. It’s certainly good to read articles about millennials but don’t make the mistake of an irrational decision to change your culture or approach. Your best and most profitable banking customers don’t care about your sensitivity to a group of people based on their age. They care about what they have always cared about… Remarkable service that turns your customers into advocates who are sending you new customers! FYI… you should be tracking that!
