So much for millennials being “Generation Rent.” The past year has seen one of the most heated housing markets in history, and this growing demand for homeownership among millennials means this market is likely to remain strong for many years. These so-called “Echo Boomers” (because they're the genetic offspring and demographic echo of their parents, the baby boomers) account for 67% of first-time home purchase applications and 37% of repeat home purchase applications according to the CoreLogic Loan Application Database.
Nicole Friedman of the Wall Street Journal, says, “Contrary to popular belief, millennials aren't shaping up to be life-long renters after all. Members of the generation, born between 1981 and 1996, accounted for more than half of all home-purchase loan applications last year.”
With millennials now applying to buy homes more often than Boomers, many banks and credit unions will shift their marketing strategies to meet this generation’s growing need for mortgage services. This transition may be easier said than done for some financial institutions that do not quite know how to connect to this tech-savvy demographic. DeepTarget offers three key strategies to market mortgages to house-hunting millennials in the New Year.
1. Millennials are digital natives that expect to have digitally-supported customer journeys. To attract and retain mortgage-shopping millennials, banks and credit unions will need to adopt a well-rounded digital approach that adapts across web browsers and mobile apps while allowing significant research into available mortgage options before a decision is made. Automated solutions such as chatbots and calculators allow this data-driven generation to get the initial answers they crave, while building an informative, transparent, and trustworthy foundation for your FI’s mortgage process.
2. Banks and credit unions that support the digital process with financial guidance and education have a leg up in a competitive industry. Only 8 percent of the millennial generation believes they have the financial skills needed to properly deal with significant fiscal decisions. This statistic reveals that these thirty-somethings are open to guidance. A savvy FI will seize this opportunity for differentiation by offering relevant solutions and genuine advice to create loyal customers that are happy with their journey into home-ownership, and extremely likely to return for additional products and services along their financial journey. What will be a clear winner is ensuring easily discoverable digital access on an FI’s website or digital banking app to rich educational content.
3. Communication is key. Marketing mortgages must be more than a gimmick for a free toaster or coffee-maker and instead lead with relevant offers that reach the right individual at the right financial time. Solution bundles such as DeepTarget’s patented DXP enable the automation of intelligent marketing and sales campaigns for meaningful digital experiences at scale. This multi-channel marketing solution mines the wealth of customer data you already have and/or uses powerful AI-based campaigns to enable targeted, highly relevant messages driven by customer intelligence including filters like generational preferences and trends.
Your financial institution can meet the needs of the red-hot housing market in 2022 with the right mix of products and services personalized to your customers. Grow deposits, increase loans, gain loyalty, and boost revenue with ease in the New Year, all while allowing your millennial customers find the home of their dreams.
