It seems like I talk a lot about marketing to Generation Y. If fact, I have used the term so many times in this blog alone that I am beginning to question whether or not I will ever get through to anyone. Maybe I am a lone soldier fighting this uphill battle.
Nevertheless, I will carry on.
Did you know that Generation Y makes up 21% of the American population? Did you also know that 4.8 billion pieces of direct mail were sent by financial services companies in the first quarter of 2007? The good news is that number fell to a meager 4.2 billion in the first quarter of 2008. UGH...it's no wonder that the anticipated response of a direct mail campaign has fallen below 1%.
A recent report from Mintel Comperemedia states that 69% of Generation Y (the kiddos between 14 and 31 today that make up 21% of our population) workers who can participate in a tax-deferred 401k retirement savings plan are not doing so.
Why? Are they not receiving those 4.3 billion pieces of direct mail? Mintel also reports that "In 2007, adults aged 30 and under received only 2% of investment direct mail offers tracked by Mintel Comperemedia. In contrast, adults over age 60 got 41%."
Right. While we talk about brokerages and insurance companies having all the sales skills, they are also clearly missing the boat on the greatest opportunity that will propel them into the future.
So what does this mean to you? It means that you need to identify those Gen Y customers and potential customers in your marketplace and help them understand not only WHY they should start saving now, but HOW to start saving now. In theory, it should not be that hard. A little creativity, ingenuity and segmentation and you should be good to go.
So go get 'em already!!
Make it an extraordinary day :)
Jenna
Rabu, 25 Juni 2008
Rabu, 18 Juni 2008
Soap is smarter than the bank?
If you don't use iGoggle, you should. I see my email, the weather, my countdown to vacation and all of my RSS feeds on one simple (and colorful!) homepage.
My Google Reader (those RSS feeds I subscribe to) showed this headline: "Banks: Less Differentiated Than a Bar of Soap." Seriously? I read the article and think that the author and I share a similar vision of bank branding. Take a read for yourself! Click here
I would love to hear your thoughts!
Make it an extraordinary day :)
Jenna
My Google Reader (those RSS feeds I subscribe to) showed this headline: "Banks: Less Differentiated Than a Bar of Soap." Seriously? I read the article and think that the author and I share a similar vision of bank branding. Take a read for yourself! Click here
I would love to hear your thoughts!
Make it an extraordinary day :)
Jenna
Senin, 16 Juni 2008
I won't tell that you swore!
Thanks for the lead-in, Bruce! And thank you, Robert for the excellent question and completely point!
In banking, there are more swear words than you will find in the Handbook for Drunken Frat Boys (I am making that up, and mean no offense to anyone!). And I am not talking about the typical four letter words. Our version of swearing include words such as SALES, PROFIT and COMMISSION. I am not afraid of those words and am doing my best, one client at a time, to change the way our industry thinks!
For eons, insurance agents and investment brokers have been associated with sales. Their compensation was primarily based on the number of clients and the types of products they sold in a given time period. As these business units started dabbling in banking, they found tremendous success in leveraging their current client relationships AND SELLING THEM BANKING PRODUCTS. I know this drives you nuts. It drives me nuts too...but for VERY different reasons!
Go back to the above paragraph and re-read the sentence that is italicized. Do you get it? That's where the lack of sales culture comes into play in the banking industry. Leveraging existing clients and maximizing the relationship. Some may call that sales, others will avoid the "s" word and call it customer service. I call it smart.
As bankers, we need to get better at that. Call it what you want, but in an environment of shrinking marketing budgets we are being asked to do more with less. This is a training function that will cost you very little but can increase profits tremendously! Your greatest investment should be in the way your highest performers are compensated. Salaries are overrated and generally overpaid. To compensate with no regard for goals, exceeded expectations or increased portfolios makes about as much sense as paying a teenager to sleep in. It's what they are expected to do and shouldn't be rewarded until they do something remarkable (like get out of bed before there are four digits on the clock!)
Robert, I could ramble all day about this topic...and I have some very strong opinions on this subject matter. But getting right down to your question, "what stands in the way?" The answer is simple: The Banker Mentality.
It is tragic that the industry I am most passionate about is also the slowest to change. You can ask a majority of the CEOs out there why they do the things they do and the answer will unfortunately be, "because we've always done it that way." The "if it ain't broken, don't fix it" frame of mind seems to hold much of the industry hostage. Banks will not experience unparalleled success until we, as an industry, break away from that thought pattern.
On the plus side, there are banks and credit unions that do very well. They embrace change, compensate based on goals vs. expectations, and spend the necessary time to TRAIN their employees that there is a difference between the plaid trouser used car salesperson and helping customers meet their financial goals.
Keep the ideas rolling :) We love to feed you the knowledge you are hungry for!
Make it an extraordinary day!
Jenna
In banking, there are more swear words than you will find in the Handbook for Drunken Frat Boys (I am making that up, and mean no offense to anyone!). And I am not talking about the typical four letter words. Our version of swearing include words such as SALES, PROFIT and COMMISSION. I am not afraid of those words and am doing my best, one client at a time, to change the way our industry thinks!
For eons, insurance agents and investment brokers have been associated with sales. Their compensation was primarily based on the number of clients and the types of products they sold in a given time period. As these business units started dabbling in banking, they found tremendous success in leveraging their current client relationships AND SELLING THEM BANKING PRODUCTS. I know this drives you nuts. It drives me nuts too...but for VERY different reasons!
Go back to the above paragraph and re-read the sentence that is italicized. Do you get it? That's where the lack of sales culture comes into play in the banking industry. Leveraging existing clients and maximizing the relationship. Some may call that sales, others will avoid the "s" word and call it customer service. I call it smart.
As bankers, we need to get better at that. Call it what you want, but in an environment of shrinking marketing budgets we are being asked to do more with less. This is a training function that will cost you very little but can increase profits tremendously! Your greatest investment should be in the way your highest performers are compensated. Salaries are overrated and generally overpaid. To compensate with no regard for goals, exceeded expectations or increased portfolios makes about as much sense as paying a teenager to sleep in. It's what they are expected to do and shouldn't be rewarded until they do something remarkable (like get out of bed before there are four digits on the clock!)
Robert, I could ramble all day about this topic...and I have some very strong opinions on this subject matter. But getting right down to your question, "what stands in the way?" The answer is simple: The Banker Mentality.
It is tragic that the industry I am most passionate about is also the slowest to change. You can ask a majority of the CEOs out there why they do the things they do and the answer will unfortunately be, "because we've always done it that way." The "if it ain't broken, don't fix it" frame of mind seems to hold much of the industry hostage. Banks will not experience unparalleled success until we, as an industry, break away from that thought pattern.
On the plus side, there are banks and credit unions that do very well. They embrace change, compensate based on goals vs. expectations, and spend the necessary time to TRAIN their employees that there is a difference between the plaid trouser used car salesperson and helping customers meet their financial goals.
Keep the ideas rolling :) We love to feed you the knowledge you are hungry for!
Make it an extraordinary day!
Jenna
Minggu, 15 Juni 2008
Baseball and Bank Marketing....
Greetings...
Today, I went to a minor league baseball game. It was a great game and I was able to spend time with my brother and his family. The unfortunate piece was that I am in Philly travelling and I am not with my family...its Father's Day and I miss the crew!
So...back to my point. Minor league baseball. Some "no names" playing a game, you may think. Actually, it is a brand of entertainment that is amazing and provides a platform for my blog entry. I will make a two-for-one hit today...addressing Robert's question to Jenna and adding a twist!
First, Robert had a great question that I will jump in and add my two cents. He wanted to know why in most "true" sales organizations, a top salesperson can and routinely does, earn more than the CEO. Why is that not the case in banking? Think about your bank...does your BEST salesperson earn more than the CEO? Is there an endless ceiling to the compensation plan? If you said "YES" then your bank is in rarefied air...elite among the banking industry.
This is my connection to baseball...minor league players abound. The best of the best, no matter from what school, geography or background, can make it to the big leagues and earn an amazingly contract an salary. So same should be true in our banks. The goal is profitable growth for the bank...getting hits, right? The more hits we get the better our average and the better the average the more attention (pay) we should receive. When the ocean rises so does the ship! The ocean is EVERYONE participating on the sales and service process and the Ship is the Board and CEO. If we can take this approach then everyone wins...
Your job as a marketer...be the agent of change and focus your efforts on making the ocean rise!
Jenna...the rest of the answer to Robert is for you!!
Thanks for the great question Robert!
Cheers!
Bruce
Today, I went to a minor league baseball game. It was a great game and I was able to spend time with my brother and his family. The unfortunate piece was that I am in Philly travelling and I am not with my family...its Father's Day and I miss the crew!
So...back to my point. Minor league baseball. Some "no names" playing a game, you may think. Actually, it is a brand of entertainment that is amazing and provides a platform for my blog entry. I will make a two-for-one hit today...addressing Robert's question to Jenna and adding a twist!
First, Robert had a great question that I will jump in and add my two cents. He wanted to know why in most "true" sales organizations, a top salesperson can and routinely does, earn more than the CEO. Why is that not the case in banking? Think about your bank...does your BEST salesperson earn more than the CEO? Is there an endless ceiling to the compensation plan? If you said "YES" then your bank is in rarefied air...elite among the banking industry.
This is my connection to baseball...minor league players abound. The best of the best, no matter from what school, geography or background, can make it to the big leagues and earn an amazingly contract an salary. So same should be true in our banks. The goal is profitable growth for the bank...getting hits, right? The more hits we get the better our average and the better the average the more attention (pay) we should receive. When the ocean rises so does the ship! The ocean is EVERYONE participating on the sales and service process and the Ship is the Board and CEO. If we can take this approach then everyone wins...
Your job as a marketer...be the agent of change and focus your efforts on making the ocean rise!
Jenna...the rest of the answer to Robert is for you!!
Thanks for the great question Robert!
Cheers!
Bruce
Selasa, 03 Juni 2008
Time Flies!
So, it's Tuesday already. I am officially a day behind in blogging, but you already knew that. I have been racking my brain to come up with another clever blog idea. A nugget of wisdom hidden in some random, run of the mill day. But it's been quiet here. I need to enlist your help.
We have been racking our brains to come up with a way to make our corner of the blogosphere a little more interactive, more engaging and more exciting. Yup, I just admitted that I think I am boring you.
So, here's what I want to know...WHAT DO YOU WANT TO KNOW! I can give you stories of real-life experiences that apply to us as marketing executives and help you understand why it's important. However, if it isn't relevant to you, why bother?
I am asking you for your ideas. Hot topics you would like some perspective on. Insight on a challenge you are facing. Or maybe you do want to hear me/us ramble about a relevant experience we've had. Regardless, we want to hear from you. Submit a comment to this posting with your ideas and we will help you out.
Make it a great week!
Jenna
We have been racking our brains to come up with a way to make our corner of the blogosphere a little more interactive, more engaging and more exciting. Yup, I just admitted that I think I am boring you.
So, here's what I want to know...WHAT DO YOU WANT TO KNOW! I can give you stories of real-life experiences that apply to us as marketing executives and help you understand why it's important. However, if it isn't relevant to you, why bother?
I am asking you for your ideas. Hot topics you would like some perspective on. Insight on a challenge you are facing. Or maybe you do want to hear me/us ramble about a relevant experience we've had. Regardless, we want to hear from you. Submit a comment to this posting with your ideas and we will help you out.
Make it a great week!
Jenna
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