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Brand key to Gen Y success

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By Victoria Young
  •  
2 minute read

Financial services companies told to unlock the potential of the Generation Y market by using a clever brand.

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.

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"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?"

Brand key to Gen Y success
Financial services companies told to unlock the potential of the Generation Y market by using a clever brand.
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