To understand Millennials, advisors should know three things. One, this is a tech-savvy generation. Two, their inheritance from Baby Boomers will constitute the largest wealth transfer in history. And three, this is a generation that is insecure, financially, having lived through both the 2008 financial crisis and the one following the Covid-19 pandemic.
These young consumers have different expectations to the older generation. They're used to digital innovation, and expect it from all industries. Technology should be used to provide a fast, personalized, seamless, and flexible service - one that builds a trusting relationship between them and the company in question.
Banks should take advantage of this time to adjust their value proposition, capitalizing on opportunities to engage Millennials, building trusting relationships with them, and converting them into loyal customers:
- Digital tools multiply touchpoints and therefore the chance for productive interactions between bank and customer, as well as making the experience more personal and seamless.
- Combining traditional channels with self-service solutions like chatbots, banks can deliver a flexible service, tailored to each customer's needs, as well as saving time and money.
- Banks can connect with Millennials at the exact moment that they require assistance, and in the way that best suits them. They can use these 'moments of truth' to deliver a positive experience, building trust and engagement.
5 best practices to better engage with Millennials
To deliver a winning customer service, financial providers should observe certain practices when delivering support - practices that take account of the new demands and expectations of this generation of customers.
Pay attention to their needs
Millennials are used to a tailored service from other industries and won't settle for a one-size-fits-all approach to customer support. Products and information should be adapted to each customer. In this regard, data analytics allow banks to gather insights on client preferences and behaviours, empowering advisors to anticipate their needs and demands, and to stay one step ahead.
Offer flexible and fast advice
Flexibility is also imperative. Not only do Millennials expect a remote service - with access to financial advice wherever they are at that moment, and on whatever device they're using - but they also want the option of 24/7 help. Conventional business hours no longer apply. Digital tools permit this level of anytime-anywhere support, allowing for minimum viable answers via chatbot or a fast response through an instant messaging application.
Financial services shouldn't underestimate the importance of consistency, both in terms of communication channels and the level of support. Customers expect a seamless service and an uninterrupted experience, even if it incorporates various different channels and multiple touchpoints. Advisors should be aware of a customer's history and have access to up-to-date information about what they need and want.
Deliver useful advice
This is a generation facing unprecedented challenges. Their financial status is in a precarious position, and so those companies that take meaningful action to help Millennials manage their wealth - empowering them to make the right decisions when it comes to saving, borrowing, and planning for the future - will be those that succeed in winning their trust.
Be honest and transparent
Securing this trust is not easy. This tech-savvy generation is willing to conduct their own research into companies, comparing products, checking reviews, and listening to recommendations from friends, family, and other sources that they deem trust-worthy. As a result, banks must maintain a brand image that feels honest and authentic, with clear and easily accessible information on products and transparent pricing.
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