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By Elan Financial Services
Financial institutions have historically focused on lifecycle marketing to target and offer financial products to customers. This model remains dominant within the credit card sector. For example, FIs typically graduate card members who start with a young adult or student product into a no frills low-rate card and then into a rich, spend-centric reward product. However, the consumer landscape has dramatically shifted in recent years and a number of new post-recession trends have emerged, including:
These trends might lead more credit card issuers to examine the market from a generational marketing approach in conjunction with a lifecycle approach. Both lifecycle stage as well as peer group influences current and potential card members. Within this framework, issuers would be wise to leverage appropriate marketing tactics that include the development of products, communication strategies, and technological solutions that cater to the representative generation. Below are today’s largest generational segments along with their related qualities and needs.
Considerations In Generational Marketing
The following are some considerations for developing marketing strategies by generational segment.
A credit union will benefit by employing an effective marketing and communication plan based on these generational segments. Using Gen Y as an example, your credit union has the opportunity to form a lifelong and meaningful relationship. With a Boomer, your credit union can maintain a stable, mutually beneficial relationship. Implementing a well-rounded acquisition, communication and product strategy will capture relationships in all segments. These relationships crate a solid foundation to build enhanced member relationships.
Credit unions have the option of developing these channels in-house or outsourcing to a partner who can facilitate and manage the process. When considering your options, it would be wise to vet all available options to fully understand the implications. Outsourcing allows a credit union to take advantage of economies of scale to better target these segments and effectively service members. With the right partner, an institution’s credit card program can thrive and the institution can allocate its internal resources to other core projects.
This sponsored content article is provided to the credit union community for shared insights and knowledge from a recognized solutions provider in the industry. Please note that the views and opinions offered here do not reflect those of Callahan & Associates, and Callahan does not endorse vendors or the solutions they offer.
If you are interested in contributing an article on CreditUnions.com, please contact our Callahan Media team at firstname.lastname@example.org or 1-800-446-7453.
May 12, 2014
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