5 Gen Z Marketing Mistakes Banks Must Avoid
Just when banks started to adjust to the marketing trends and preferences of Millennials, a new generation was ushered in and is ready to shake up the financial industry yet again. Gen Z bank marketing is an exciting new frontier and the latest buzz amongst the financial industry.
Gen Z, those born from the mid-1990’s to early 2000’s, is just coming into their own financially, and there is a great opportunity to reach a previously untapped customer base. However, they are not like previous generations and it is easy to miss them entirely in your marketing campaigns. Avoid these following mistakes to attract young customers to your bank.
1. Mistaking Gen Z for Millennials
Gen Z-ers have positioned themselves as a generation unlike the previous few. They are referred to as the “Throwback Generation” because of their old-fashion values. Unlike Millennials or Generation X, Gen Z values financial security over flash and style. They are hard workers, frugal, and realistic.
Gen Z’s defining childhood moment was the housing crash in 2007. Many of them experienced the devastation of losing their childhood homes and witnessed their parents experience job loss. As a result, they are extremely interested in financial stability and security.
If your bank is to market to this new generation, you must adjust your marketing accordingly. Although they may use the same mediums as Millennials, what catches their attention will be very different. Gen Z is less interested in flash and more interested in what your bank can offer them towards financial security.
2. Marketing to Their Parents Instead
Gen Z are very much in charge of their own finances. Although young, they are already earning their own money through hard work and very interested in putting it to good use. Their parents may be required to drive them to the bank (those who are still teenagers), but they are the ones making financial decisions.
A Gen Z bank marketing strategy should be geared mostly to them directly. The parents offer guidance, but Gen Z has control. Especially with the rise of technology, many in Gen Z are banking and making decisions from their phone. Which leads to the third mistake.
3. Ignoring Mobile Banking
It is no secret that many people live by their phones, and Gen Z is no exception. Although most Gen Z-ers do face-to-face banking, do not mistake that for preferring it. If your bank offers online and mobile banking, they will prefer and take advantage of that.
Mobile banking gives Gen Z more control over their banking and less dependency on their parents. It is more convenient and will give your bank an edge. A Gen Z marketing strategy should include a mobile presence.
4. Not Offering Educational Materials
Gen Z-ers are eager to achieve financial independence. Because of this, they will quickly take advantage of any financial advice and education. By offering financial education services, you will gain authority, respect, and attention.
Likewise, parents often feel helpless to give good financial literacy advice to their children. A successful Gen Z marketing strategy would include offer financial materials to both children and parents.
5. Ignoring Digital Marketing
Without an online presence, especially a mobile one, your bank mostly does not exist to Gen Z. Most of their information, purchasing, and socializing happens online. To reach them, your financial institution must learn Gen Z trends and adopt your strategy accordingly.
Are you eager to create a digital strategy to reach Gen Z, but not sure where to begin? We created a FREE guide to help get you started. Download it today to get the tips and tricks for creating your best marketing strategy here!