1. Webinar Topic: How to Engage
Millennials for Financial Services
Hosted by:
The Business Development Institute and Empathica
Date: June 28, 2012

2. Speakers
© 2012 All Rights Reserved - Confidential 2

3. FINANCIAL SERVICES:
UNDERSTANDING MILLENNIALS TO INCREASE
THE CUSTOMER BASE, SALES AND REVENUE
BY DR. NATALIE L. PETOUHOFF

4. MILLENNIALS: WHO THEY ARE AS A TARGET MARKET

5. MILLENNIALS: HOW THEY…
• Connect to brands
• Shape their opinions about products & companies
• Use technology to build their networks & share
information
• Make purchasing decisions
• Are influenced and influence others

6. JUST THE FACTS
• Millennials are the largest, most diverse, educated &
influential shoppers on the planet
• Positioned to be the wealthiest generation to date
• >1.7 billion people on earth are 15 -30 yrs of age*
• By 2015 in the US, annual spending >2.45Trillion/yr**
• By 2018 in US, projected income will be $3.4 Trillion/yr –
Surpassing Baby Boomer income**
• Millennial women represent a $54B marketing
opportunity, surpassing baby-boomers in consumer
package goods spending***
• Have influence over their Baby Boomer parents choices &
will inherent that money
Sources: *CIA World Factbook **Javelin Strategy & Research Study ***IRI study

7. MILLENNIALS:
RANGE OF LIFE STAGES & MILESTONES
• From adolescence to adulthood
• From high school to college or workforce
• From single to married to parents or just single
• The avg age of a new mom is 25

8. MILLENNIALS:
LIVED THROUGH MANY LIFE-DEFINING EVENTS
• 2004 Southeast Asian Tsunami
• Hurricane Katrina
• 2008 Sichuan (China) Earthquake
• 9/11 I’ve seen
a lot
• The Great Recession- Banks, in my
Insurance And Real Estate short life
• The Facebook Revolution

9. BRANDS:
A FORM OF SELF-EXPRESSION
• Strong sense of brand awareness
• More the brand fits into their lifestyle, the more
inclined to personally identify with brand
• 86% share their brand preferences online with their
social networks
• Strong sense of brand loyalty
• When they find a brand they like, 70% keep coming
back
• After a bad experience? Extremely difficult to win
them back
*Edelman The 8095 Exchange Study

10. EXPRESSING SUPPORT FOR A BRAND IS A
PERSONAL STATEMENT
The Brand’s
• Authenticity What matters most to Millennials?
• Integrity
• Ability to deliver
• It’s deeper than for other demographics, because the
online expression of support for a brand is a permanent,
personal reflection of Millennials’ values
• It comes down to trust
• Access to online information increases/decrease that trust
• Prefer to do their own research online vs. read/believe a
brochure from a company
• THIS IS WHY SOCIAL MEDIA MATTERS TO BUSINESS
QUESTION: What’s being said about your company online?

11. MILLENNIALS:
HOW THEY SHAPE THEIR OPINIONS ABOUT
PRODUCTS & COMPANIES
• A company’s reputation can
matter as much as the
performance of its products*
• 34% bought from a brand
because of the social or
political values of the company
• 90% tell their family & friends
NOT to purchase the
company’s products when they
lose trust or respect for a brand
*Source: Pew Research survey

12. MILLENNIALS:
WHY THEY PURCHASE
• 55% said price was most
important reason
• But price is the least important
in building their trust*
• 33% looked for brands who made a positive
• 30% cared more about product impact on the world
quality • Civically minded, propensity to combine
belief with action
• 20% cared more about the • 80% donate time to non-profit causes;
range of products offered believe companies should implement
employee volunteer programs
• Look for brand’s social & environmental
commitment when deciding where to shop
& recommend its offerings
• More likely to switch banks based on their
charitable investments**
Source: *Pew Research Survey **Deloitte Banking Study

13. MILLENNIALS: WHO THEY TRUST FOR BRAND
AND PRODUCT RECOMMENDATIONS
• Information is a Key To What Influences Millennials
• They look to:
• Family- 2x more likely than any other generation to use family counsel
as the most influential factor in making choices around money
• Friends
• Bloggers that document their personal experiences with products
• Consumers who write real reviews
• Why?
• Because these groups already have personal experience with the
products or brands

14. MILLENNIALS:
SOCIAL NETWORKS & TECHNOLOGY ARE THEIR LIFE*
• 75% created a profile on a social networking site
• 55% visit those sites once/day
• 60% connect to the Internet wirelessly when they are away
from work or home
• 88% text each other
• 74% new technology makes their life easier
• 50% use it to be closer to their friends
• 65% are disconnected one hour or less a day
*Pew Research survey

16. MILLENNIALS: TAKING ACTION IS A CORE VALUE
• 70% recommend their favorite brands to
family and friends
• 47% write about good online experience
• 40% have criticized a brand on a social
network
• 70% would create a video and post it
online or write a review about their
experience with a company
• 20% have posted a video about
themselves on line
They key for brands? Inspire action

17. MILLENNIALS: THEY SHARE THE GOOD & THE BAD
If a Millennial has a problem with a company, instead of calling
customer service
• They text 5 friends and share
their frustration on Facebook
• The friends share the story with
their peer groups
• Friends comment on the
incident and share their own
stories of disappointment
• A single event has spread like Source: http://www.sodahead.com
wildfire
When seeking customer service on an issue, <10% would call customer service.

18. MILLENNIALS: WORD-OF-MOUTH IS A MAINSTAY
“Focus on making an excellent product.
If you do, then all of your marketing will
be true and most of the marketing will be
done by us.
We are all looking for great products and
brands to share with our friends.
The best way to help us spread the word
is by first creating a great product.”

19. BANKS & MILLENNIALS

20. BANKS: 2011 GLOBAL BANKING SURVEY:
A NEW ERA OF CUSTOMER EXPECTATION
Source: Ernst & Young Study of 20,500 participants

21. BANKS: HOW DO THEY STACK UP MILLENNIALS?
• 30% have 20-40%
Millennials as customers
• 31% have a Millennial
Strategy
• 37% had no Social
Media Strategy
• 63% said they planned
to do something with
Social Media
*Source: Oracle Financial Services Study

22. MILLENNIALS: THEIR VIEWS ON MONEY
• Millennials generally: Because Baby Boomers are drawing
• Love to spend from their savings, to generate revenue
• Don’t have long-term Banks need to reach out to Millennials
investment plans
• Most popular banking products
are credit, debt cards, loans
(school and mortgage)
• Mobile banking is a preferred
banking channel
• Want assistance to manage
their money
• Recommend their banks to
family & friends
*Source: Oracle Financial Services Study

23. BANKS NEED A NEW WAY TO APPEAL TO CUSTOMERS
The old playbook is out
• Millennials don’t have to
rely on product marketing
information
• Banks need to understand where
• They can tap the whole they fit into Millennials lives
world of data to make • Banks must find different ways to
purchase decisions communicate with Millennials,
directly and indirectly through
their social networks, colleagues
and influencers…

24. MILLENNIALS:
WANT HELP REACHING THEIR PERSONAL GOALS
• They pay attention to brands that impact their goals
• Affording house, buying a car, raising children, going to school…
• Are financially guarded; generally have conservative asset plan allocation
May be due to:
• Life-defining events they have witnessed
• Have more access to financial information
than predecessors at similar life stages
• Don’t feel they have enough financial
education to manage their investments
• Bank’s products & services seem complex
Source: Deloitte Study

25. RECOMMENDATIONS
Step 1: Accept the Millennial Generation
Don’t say, “In a few years they will be like us…”
Millennials are…
• On the leading edge of trends that they & older generations follow
• Online banking
• Resistance to traditional marketing
• Concern for the environment
Strategies that effectively meet the needs of Millennials provide
benefits for other demographics
*Source: Deloitte Financial Services Study

26. MILLENNIALS: CAN U UNDERSTAND THEM?
*Source: www.transl8it.com

27. MILLENNIALS: CAN U UNDERSTAND THEM?
*Source: www.transl8it.com

28. RECOMMENDATIONS
Step 2: Customer Experience Channels– Integrate Them Well
• Conduct customer experience – day in the life of – studies of your
channels
• The trend is to move from just branches: offer: the branch store, the
online store, mobile store, face-to-face & social networking store
• Combine store experiences in the same transaction: research in one
place, educate themselves in another, purchase in another…
• Make it easy to navigate / switch channels
• Provide a consistent customer experience across all channels
*Source: Deloitte Financial Services Study

29. EXAMPLE:
ING DIRECT
Created Drop-in
Café’s in LA, NYC,
Philly, Wilmington
• Focused on networking and learning
• Branches became a social networking venue where friends & family
gather, even if they aren’t make a financial transaction
• Once Millennials developed a relationship with the bank, they were
more likely to do banking there

30. EXAMPLE: CAPITAL ONE
• Opened a branch in Manhattan
• Shares the space with
Starbucks
• Convert loose change in the
bank’s bean counter machine
to get a coffee
• Coffee drinkers can enjoy Starbucks, watch the news on a TV
and then go do a financial transaction with a Capital One Advisor
• A bank becomes a place to linger, talk, socialize and bank

31. RECOMMENDATIONS
Step 3: Marketing As Education vs. Telling
• Millennials lived in an information-intensive, connected world
• Move from product marketing to relationship marketing
• Provide practical information to build relationships
• They are skeptical of traditional advertising; rely more on the
advice of friends and family
• Create blogger outreach programs to influential Millennials
• Always better to have the voice of the customer provide testimonials for this group
*Source: Deloitte Financial Services Study

32. EXAMPLE:
ROYAL BANK OF CANADA
• Created a contest with User-
Generated Content
• Grand prize: $5,000 for best picture
• How $1,000 would improve student life
• Go to RBC’s Facebook Fanpage
• Download and print an Arbie template
• Find photo opportunities to show Arbie
how $1,000 would improve their student
life
• Learning to surf
• Travelling to Europe
• Buying a 30” computer monitor
• Upload the pictures and vote!

33. EXAMPLE:
ROYAL BANK OF CANADA
Leverages social media
• Community Manager
• RBC Advice Center on
Facebook
• iPad Educational App
• Mobile App Information
• Daily Advice Game…

34. EXAMPLE:
ROYAL BANK OF CANADA
Leverages social media with
an RBC Advice Center on Facebook

35. RECOMMENDATIONS
Step 4: Make Products Simple
• Millennials prefer simple, practical, affordable banking services
• Show you understand they are just starting their financial lives
• Use social interactions to draw attention to products
• Appeal to doing good things
*Source: Deloitte Financial Services Study

36. EXAMPLE:
ROYAL BANK OF CANADA
Education about the Mobile application on Facebook page

37. EXAMPLE:
ROYAL BANK OF CANADA
Education about Learning Money app for iPad on Facebook page

38. EXAMPLE:
ROYAL BANK OF CANADA
• Sponsored Filmmakers Competition
• Helped made dreams come true

39. EXAMPLE: SUN TRUST
• Campaign: Seeing Beyond The Money
• Actively support organizations and activities that
share our commitment to enriching and strengthening
the communities in which we live.
EXAMPLE: WACHOVIA
• Central Piedmont Community College (CPCC)
received a $250,000 grant
• Provide retraining and counseling for displaced
professional and paraprofessional workers.

40. How to Engage Millennials for Financial
Services through Social Media
Dr. Gary Edwards
Chief Customer Officer
Empathica
June 28, 2012

42. The Evolution of Customer Intelligence
ADVOCACY
Strategic Value
Loyalty
Satisfaction
Service
Customer Engagement
© 2012 All Rights Reserved - Confidential 42

43. Customer (Dis)Connect
85% of customers
give feedback
29% believe it is
acted on
Empathica 2012
© 2012 All Rights Reserved - Confidential 43

44. What We See as the Opportunity
Drive Growth
Build 1 in 3 people come
Connections to a brand through a
personal
Desire to recommendation
Connect Satisfied customers
spend 33% more
Desire to Matter Americans complete
2.6 billion surveys
per year
More than 50% of
consumers feel that
service levels are
inadequate
Empathica Consumer Insights
http://www.empathica.com/consumer-insights/
© 2012 All Rights Reserved - Confidential 44

45. Harness the Untapped Potential
Nearly 1/3 of banking
customers feel their
institutions provide great
customer service
Empathica 2010
© 2012 All Rights Reserved - Confidential 45

46. Customers Trust Each Other
Of consumers say they trust word-of-
92% mouth and recommendations from
friends and family,
above all other forms of
advertising
Neilson 2012
© 2012 All Rights Reserved - Confidential 46

47. Millenials Most Likely to be Advocates
“In the last 3 months I have recommended a certain retailer or
restaurant to a friend via a social media network such as
Facebook or Twitter.”
18-24 25-34 35-44 45-54 55-64 No Answer
Yes 44.75 46.49 39.98 31.61 23.46 14.59
No 46.59 49.09 57.65 66.04 74.97 76.83
Don’t Know 8.66 4.42 2.37 2.34 1.58 8.58
Empathica 2012
© 2012 All Rights Reserved - Confidential 47

48. It Starts With the Customer
Start a Conversation
30 Million
Surveys/Year
110 Million
Positive
Impressions on
Social Media
Give a Voice to Recommend Create a Dialogue
© 2012 All Rights Reserved - Confidential 48

49. Take Feedback to the Next Level
Increase Engagement
20,464 Customers completed
mobile survey in 6 months
• 25% of total responses
• 58% Mobile from QR Codes
© 2012 All Rights Reserved - Confidential 49

50. Give Customers a Voice to Recommend
“I love my local bank… the staff is
friendly and always there to
answer my questions…”
- Shared with 500 Facebook friends
Convert Customers Amplify the Voice of
Find Satisfied
Customers to Advocates Your Advocates
100+ Brands 12% - 20% 1 Million+
conversion Advocates Mobilized
© 2012 All Rights Reserved - Confidential 50

51. Find and Mobilize Advocates
Customer completes survey Only customers with high intent to Customer makes a personalized
and intends to recommend recommend are invited to make a recommendation
recommendation
Email Post
Facebook Post
Twitter Post
Recommendation is shared via Facebook, Twitter
and email with all of the advocates’ friends
© 2012 All Rights Reserved - Confidential 51

52. GoRecommend – Amplify Great Service Experiences to the World
The Impact of Advocacy
100+ 20%
Accept
Brands
Invitation
Customer completes survey Only customers with high intent to Customer makes a personalized
and intends to recommend recommend are invited to make a recommendation
recommendation
Email Post
Facebook Post
Positive experiences
shared with over
Over 1 Million
110,000,000+ Advocates Mobilized
Friends and Followers Twitter Post
Recommendation is shared via via the Facebook
Recommendation is shared Facebook, Twitter
newsfeed and Twitter the advocates’ friends
and email with all of page with all of the advo
© 2012 All Rights Reserved - Confidential 52

53. Connections With 5000+ Customers in 3
Months
Top 2 Box Score 76%
© 2012 All Rights Reserved - Confidential 53

54. Advocacy Not Advertising
Paid
Advertising
13.5 X higher click rate than Facebook advertising
8.5 X higher click rate than Google advertising
© 2012 All Rights Reserved - Confidential 54

55. Socialize the Customer Experience
“We’re turning attention to
linking operations to
marketing through Social CEM.
The aim is not to drive online
advertising impressions, but to
explicitly and transparently
drive the behavior of customers,
front line service staff and
managers.”
© 2012 All Rights Reserved - Confidential 55

56. Who We Are
• Full CEM product suite – Patent-pending social media
advocacy, customer feedback, and employee engagement
solutions
• 150+ employees in North America and the UK
• 30 million surveys, 50+ countries, 25+ languages
• Robust growth plan driven by industry-leading products
© 2012 All Rights Reserved - Confidential 56

57. Thank You
Gary Edwards
Chief Customer Officer
gedwards@empathica.com
Contact us to Learn More
http://www.empathica.com/industries/banking-insurance/
View Recorded Webinar
http://cem.empathica.com/Web-WB-BDI-Banking-Webinar