ALBANY, N.Y. -
Media Logic has released a report called "Generation X: Insights for Financial Service Marketers," aimed at helping financial institutions do a better job of reaching out to a market it describes as "woefully unschooled about financial products."
"As a result of this segment's stage of life, Gen Xers are in greater need of financial products and services than any other age group," the white paper suggests. "They are purchasing homes. They are starting families, considering life insurance and preparing for education expenses. They are starting to consider retirement planning and accounting for healthcare. And they are getting ready to take care of ailing, aging parents who are not financially ready for their own retirements. Their need for financial solutions is great, but there are challenges in acquiring, maintaining and building deeper relationships with this segment."
To meet those challenges, the white paper, based on research done by Iconoculture, urges recognition that many Gen Xers have been carrying credit-card debt that has led to a "cyclical state of debt hardship," which it defines as having 40% or more of one's income allotted to debt payments) and that many in the segment are "often paralyzed into inaction, waiting too long to make choices, unsure where to turn for guidance."
Due to the debt loads, "household income data can be very deceiving when used as the primary indicator of prospect worthiness," the paper suggests. "Discretionary spending and net worth data has proved to be much more valuable in assessing a household's financial status."
The white paper offers this advice in marketing to Gen X:
* Be direct. Gen Xers seek direct, transparent financial guidance. Educate them. Enlighten them. Be up-front and maintain full disclosure.
* Keep it simple. Provide a relaxed, inviting environment to share information and answer questions. "Banks have always been perceived as a place to make transactions. They need to begin evolving into places where one shops for, learns and asks questions about financial products. A friendlier "retail" environment will encourage more visits and, in turn, a deeper relationship." This type of relaxed, information-rich environment can also be achieved online as long as questions can be asked and answered in real-time via an IM-like interface, the paper says.
* Provide a human touch. Gen Xers may use the Internet to comparison shop and get acquainted with a product set, but they also want the perceived security of human interaction at the moment of product selection and purchase. Provide them with the means to connect with a person via phone, online or, better yet, face to face.
* Be flexible. They want financial institutions, products and services to deliver convenience. Between kids, work, errands and commitments to others, the little free time they do have is extremely valuable to them. They want solutions that accommodate their hectic schedules or even allow them to free up once committed time. That can be online access, expedient bill pay solutions, 24/7 customer service or even branch and office hours after hours.
* Be positive. They want financial products that allow them to feel as though they are contributing to positive change and fulfilling their passions. Solutions that allow them to "contribute" without sacrificing substantial amounts of time resonate well with this segment.
FOR MORE DETAILS
More information on this study can be found at www.mlinc.com.
