Marketing Mortgages to Millennials: 3 Strategies Banks Can Use to Attract This Customer Base
More than 25% of humans on the planet fall into the “millennial” category. With greater numbers than any previous generation, Millennials now have more spending power than any other generation. How can banks take advantage of this? Well, by, marketing mortgages to Millennials. While millennials and home-buying may not have gone together in the past, today, many millennials are approaching ages where it is both feasible and desirable for them to invest in housing, start families, and otherwise take out loans and mortgages. At the same time, most banks – accustomed to marketing to baby boomers – don’t know how to reach millennials who are buying houses.
Marketing to millennials doesn’t have to be as hard as statistics would make it appear. These 3 strategies will help you get your bank on the map in terms of millennials, so you can market mortgages in ways that work.
Create a Strong Digital Presence
Millennials are the first generation of digital natives, with even the oldest being more adept with smartphones and computers than their parents. This means that millennials are doing significant online research into their mortgage options, bank options, peer opinions of those options, and looking for general information before they even think about making a decision. They’re also very likely to get in touch with banks and attempt to determine how much they will pay, why, and what their options are. Your bank needs a strong digital presence and must make sure all web properties are mobile-friendly.
In most cases, your millennial marketing strategy should include:
Mobile Website and App – Millennials will look up your bank on their smartphones and tablets. Your goal should be to have a well-functioning setup that operates smoothly and seamlessly across each device.
Social Media – While this is a necessity, it’s important not to over-invest. Maintain a few key channels such as Facebook and Twitter and keep them populated, respond quickly, and stay on top of any questions, mentions, or input you do receive.
Mortgage Marketing Content –When marketing mortgages to millennials you should have mortgage content in the form of an educational blog. It’s also beneficial to offer video content, assuming it’s high quality and engaging. Here, local targeting is in your best interest, as it will reduce competition for even basic information.
Calculators – Most millennials will be relatively hesitant to call your bank to ask for information. You should consider setting up calculators where the average person can quickly see what they are likely to pay for a mortgage, what their rates will be, and what they can afford.
Chatbots – If you can’t afford 24/7 service, chatbots and other automated contact solutions will help you to connect with millennials. Here, your goal should be to offer a quality chatbot that will respond, allow millennials to begin account setup or mortgage application processes, while asking/answering basic questions.
Taking the time to create a strong digital presence will help you to connect with millennials. A quality website shows that you offer quality services. Sharing information and help with the mortgage process will help you to build trust, engage with your audience, and lead them towards a sale. And, providing instant-gratification in the form of automated solutions will help you to engage and drive a sale before your lead goes somewhere else.
Form Relationships over Making a Sale
Millennials hate being sold to. It’s a well-accepted fact. But, what can you do about it? One approach is to focus on the relationship first and the sale second. Your sales team should approach any lead, call, or customer from the angle of “Can I offer value to this person? How?”. If you can’t offer value, you probably shouldn’t be trying to make a sale. While that can seem counter-productive, it will be in your best interest in the long-term, because people who receive value from services are happier, more financially secure, and more likely to drive more customers to your bank.
Some tactics you can use when marketing mortgages to millennials include:
- Assign leads and customers to service representatives, so they talk to the same person most of the time
- Prioritize offering value, not making a sale
- Focus on “What can I do for you”
- Actively suggest improvements or better options over more expensive options (Cross-sell in the customer’s favor)
- Follow up on social media to ask if individuals found a solution
Relationship building might not result in an instant sale, but it will result in a more-likely sale and a more-loyal customer when you do make that sale.
Invest in Your Community
Most people would say they’d rather support an organization that invests back, but Millennials do so to a level not seen by previous generations. Millennials are idealistic but also bitter, the simple truth is Millennials are in debt, often in the form of student loans, they were raised in an age of internet scams, housing bubble bursts, and a recession. They’re careful with their money to an extent that means they actually support businesses based on ethics and social good. In fact, 75% of millennials in a survey claimed that it’s important for companies to give back, with 9 out of 10 claiming they’d switch brands to support one with a cause.
How can you adopt a marketing strategy that works? One option is to offer debt management, financial literacy, and other community education. Visibly show that you are investing in your mortgage holders and their ability to continue to own their homes. You can also invest in your community as a whole, participating in clean-up drives, donating to causes, and donating education or other resources to local schools. While this isn’t a direct sales strategy, it will put you in front of your target user-base and it will help you to build rapport and trust. At the end of the day, if the average millennial has to choose between a large faceless bank or a regional bank that actively puts money into their community, their causes, and their family, the choice is an easy one.
Here, it’s important that you don’t turn social good into immediate attempts to make a sale. Millennials are accustomed to “fake” efforts to build trust, and you will have to be genuine in efforts to earn any value from it. This means creating an investment strategy where you consistently give back, invest in local community and events, and invest in local people.
The Proper Way to Market Mortgages for Millennials
Marketing mortgages to millennials is often less about using catchy ads and gimmicks like free stuff and more about building relationships, offering genuine service, and investing in people and their community. These marketing tactics will pay off, and they will help you earn value over the long-term, with more loyal customers who are more aware of their financial situation, finances, and mortgage.