Millennials, now the largest demographic group in America, are possibly the most misunderstood, elusive market ever, a notion underscored by The Wall Street Journal’s article about the existence of $20,000-per-hour “Millennial consultants.” The Journal reports that companies like Oracle, HBO and Red Robin retain these consultants to help “stem turnover, market to young people and ensure their happiness at work.”
If your company is a bank or a card provider and you’re wondering how make Millennial customers happy and retain them, you don’t need to run out to hire a very expensive consultant, or launch a huge advertising campaign. At least not yet. I have some information that can help you.
Millennials reward positive fraud outcomes
FICO’s latest research on consumer banking trends has revealed that 22% of US consumers will close an account after a fraud incident, while 29% of Millennials will close all accounts with that bank. In Millennial parlance, that’s “harsh.”
However, among Millennial customers who say they experienced fraud in the past year, 41% recommended the bank to friends, family, and colleagues after a positive fraud management experience, while 34% went on to add new accounts with the same bank.
This demonstrates that, contrary to popular perceptions, Millennials exhibit brand loyalty when presented with a favorable experience. It is why the most successful banks have recognized that fraud is more than a cost-containment problem. They are investing in state-of-the-art fraud management platforms like the FICO® Falcon® Platform to give the customer a greater sense of ownership and control.
Peer reviews and word-of-mouth increasingly carry more clout than any advertising or marketing program, especially with Millennials, who now represent 80 million US customers and US$200 billion in annual buying power––an important point of note for all companies seeking this generation’s business.
The Wall Street Journal provides a supporting data point on the importance of fraud protection and positive fraud management experiences. In an online survey of more than 2,100 US and international banking customers, 41% answered the question, “What is most important to you in a bank?” with “Security.”
Additional FICO research highlights:
- 14% of US consumers say they have written a negative social media post about a fraud incident. This is a 100% increase on the number from our survey one year ago.
- 25% of Millennials will write a negative post on social media about a fraud incident.
- 25% of 35-49 year olds recommended their bank to friends, family, and colleagues after a positively handled fraud incident.
- 40% of banking customers say their bank does not protect them from identity theft at all times.
Follow me on Twitter @Fraudbird.