72% of adults under age 30 who are shopping for checking accounts are also in the market for other banking products. To capitalize, institutions must align their channel experiences, offer rewards for deeper relationships and focus on cross-selling in the branch.
Over the last few weeks we surveyed checking account shoppers on FindABetterBank.com and found that 63% of these shoppers are also shopping for other banking products. Seventy-two percent of shoppers under 30 are shopping for more than just a checking account – 36% also want a savings or money market account and 26% also want a credit card.
Financial marketers should consider these three ideas when trying to win over Gen-Y consumers:
Align channel experiences. Research has revealed that younger consumers would rather open accounts in branches because they want to make sure they’re getting what they really need. When we observe Gen-Y consumers, we see how a poor online presentation eliminates many institutions from consideration. One way to align channel experiences is to train the branch sales staff to sell using website content instead of the traditional tri-fold brochure. Of course, branch staff can’t effectively use the website to sell if it isn’t working when shoppers are alone online at home.
Reward deeper relationships. Many institutions already offer rate discounts if certain loans are paid through an account transfer from a checking account. But a small percentage of young consumers are shopping for mortgages compared to the number that are shopping for checking accounts or credit cards. Data suggests young consumers are more likely than others to be interested in additional account features like debit rewards cards. Checking accounts that reward customers for deeper engagement could persuade younger consumers to consolidate more of their financial products under your roof.
Cross-sell in the branch. Given young consumers’ product-centric online behavior, it can be difficult to get them to notice cross-sell offers through an online experience. But young consumers will go into a branch to open an account and when they do, this is going to be your best opportunity to cross-sell to them.