Financial services companies have been told to consider a revolutionary approach by branding and marketing to Generations X and Y instead of just chasing the baby-boomer dollar.
Demographic studies showed 42 per cent of Australians were Generation X or Y, Brand Matters managing director Paul Nelson said.
However, a KPMG study, “Beyond Baby Boomers: The Rise of Gen Y”, conducted in June found only half of the financial services industry was prepared to make the age group a priority.
“The inherent challenge with Generation Y is that they don’t want to build wealth,” Nelson told the Branding and MarComms Financial Services conference in Sydney.
“They’re more likely to switch brands based on a good cause or on the basis of a recommendation that comes from a friend, as opposed to a financial planner.”
The “builder” generation of 63 to 88 year olds is brand loyal and baby boomers are brand switchers, while Gen X and Gen Y want to experience the brand.
A comprehensive marketing strategy using mobile phones, podcasting, social networking sites and large arena events are ideal media to reach Generation Y, Nelson said.
A former AMP and McDonalds marketing executive, Nelson advised financial services companies to stick to the four rules of branding – make it credible, relevant, unique and sustainable.
Superannuation fund Hostplus has Generation Y-centric brand Ka-ching! Ka-ching!, which offers no-jargon financial guidance via DVD education packs and podcasts from The Barefoot Investor author Scott Pape.
The fund’s aim is to build a relationship with young Australians over their lifetime.
“There’s an opportunity to build really strong brands in the financial services sector,” Nelson said.
“When we talk about brands like Harley-Davidson, these folks are tattooing logos on their arm. Where’s the depth of relationship with financial services brands?”
