Articles: Xers, Boomers and Other Bank Customers

Banking Preferences Vary By Generation, Too

With account holders from four distinct generations, today’s financial professionals need to be knowledgeable about all four sets of service preferences—and masterful at adapting their style.

Veterans

Members of George’s generation were born before about 1940. They are 66 and older today. Although they may constitute only about ten percent of your customer base, they probably have the lion’s share of assets. They’re more likely than younger customers to actually come into the bank; it’s just the way they’ve always done business. Members of the WWII Generation usually prefer service that seems respectful, where there are hierarchical roles between the server and the served. Specifically, when dealing with customers from this generation,

1. Don’t rush things. Take time for a relaxed pace.
2. Establish rapport by being respectful in the old-fashioned way: “Please,” “Thank you,” “Mr.,” “Mrs.,” “Sir,” and “Ma’am.”
3. Avoid phone systems that are difficult to navigate and that don’t allow customers to speak with a live person.
4. Watch your language—good grammar, clear enunciation, no profanity.

Boomers

Baby Boomers were born between 1940 and 1960. (Although the post-WWII boom in births began in 1946 and ended in 1964, people who were born in the early 1940s told us in surveys they felt like Boomers; those born in the early 1960s reported that they identified more with Generation X.) Boomers probably comprise the biggest chunk of your customer base. They are in their economic prime, and they’re busy making financial transactions—funding their IRAs, taking out loans to pay for their kids to go to college, and refinancing their homes. They’re tired of writing checks, and they’ve begun to make the transition to online banking. Boomers prefer a friendly, more casual relationship with their banker. Specifically,

1. Be personable. Boomers may not feel like taking time to chat, but will appreciate a warm greeting.
2. If you know your customer’s name, use it. Most Boomers enjoy name recognition.
3. In a meeting, take time to interact and establish rapport before getting down to business.
4. Long-time bank customers of this generation appreciate status programs and services that recognize their loyal patronage.

Xers

Generation Xers, born 1960 to 1980, are typically the next largest group of account holders. They’ve always used ATMs and were the first to use the Internet for most of their financial transactions. They avoid the bank; it’s nothing personal, they just have other priorities about how they spend their time. They’re not as focused on the interpersonal part of the transaction. Instead, they want streamlined phone and on-line systems where they can quickly access all the information they might need. On the rare occasions they actually visit the bank,

1. Be efficient. Competence is more important to most Xers than schmoozing.
2. Gen-Xers tend to ask lots of questions, so make yourself available to share information. Be prepared with facts and figures.
3. Don’t hover. Back off and allow them to make decisions for themselves.
4. Don’t think you’re not doing a good job just because they aren’t friendly. Some Xers prefer anonymity.
5. Most Xers are in their thirties, and they’re struggling to make ends meet. They’re looking for good interest rates and a fair return on investments. Bare bones services with low fees are popular with them.

Millennials

Your youngest account holders are members of the Millennial Generation, born 1980 to 2000. Aged 6 to 26, they probably account for only about fifteen percent of your customers, but they’re the fastest growing segment. Most have never sat down with paper and pencil to balance a checkbook—and they can’t imagine why anyone would. Two-thirds used a computer before they were five, and today they spend an average of eleven hours per week on-line. Many were involved in financial decisions as children—they may have researched the next family car on the Internet. They’re financially savvy, and even though they’re just learning the ropes, they want to be treated as important bank customers.

1. Be respectful. No one likes to be talked down to just because they’re young.
2. Be positive. Avoid sarcasm and irony.
3. Pick up the pace. Millennials are bored by methodical people and long lines.
4. Make your website and your lobby visually appealing to young people. They’ve witnessed the merging of business and pop culture on TV shows like The Apprentice, and they expect to transact business in lively, interactive spaces.