Summary
This article covers the strategies needed to effectively market to different generational groups. Learn how to tailor your approach to Gen Z, Millennials, Gen X, and Baby Boomers to reach more potential clients. By the end, you’ll know how to develop targeted campaigns for each generation and maximize your impact.
Age isn’t just a number. Over time, a person’s needs, preferences, and values change. Virtually every industry relies on generational marketing to reach people of different age groups, and mortgage lenders are no different.
Developing a generationally driven marketing strategy can help you narrow your focus. It can also help you broaden your market to new age groups. But what are some unique strategies that lenders can use to target these age groups?
Baby Boomers
Baby boomers are those born between the years 1946 and 1964. While this group is unlikely to purchase a “starter home,” they still have needs that lenders can address through generational marketing.
Understand the Needs of Baby Boomers
Boomers are rapidly nearing or entering their retirement years. But not everyone is looking forward to retiring poolside. Some boomers may be looking for ways to stretch their budgets by:
- Tapping into their home equity through a loan or reverse mortgage
- Refinancing their remaining mortgage to eliminate debt
- Buying a second home to be near family
- Downsizing into a smaller home
If you have loan programs that speak to these issues, you may be able to better connect to an older generation.
Aim to Educate
Baby boomers may be receptive to information that addresses their specific concerns. Make sure to create content that addresses questions about downsizing, reverse mortgages, or other programs aimed at boomers.
And while other generations may prefer video-based content or infographics, boomers are a bit more traditional. Create readable guides that address these topics. Be thorough. Boomers may appreciate the chance to learn more about programs that address their needs.
Don’t Neglect the Traditional Approach
Traditional marketing strategies remain effective, so don’t be afraid to use direct mailers, print ads, or community events. For instance, you might host an event at a local community center on “Aging in Place.” This allows you to connect with boomers at a more direct, local level.
Keep It Personal
Even though boomers have adapted to online communication, many still prefer personal touches. Phone calls or face-to-face interactions provide space to discuss needs and give you a chance to connect on a more meaningful level. If you’re aiming to reach this demographic, you may need to carve out additional time for you and your staff to interact directly with your leads.
Generation X
Born between the years of 1965 and 1980, people in Generation X (or Gen X) often find themselves sandwiched between their aging parents and growing children. Here’s how lenders can address the unique needs of this generation.
Stress Work-Life Balance
Gen X remains a major part of the U.S. workforce. But now that many are working remotely, Gen X homebuyers are eager for housing that offers home office space and other features that accommodate their work needs. Helping these homebuyers find this balance can become a central part of your generational marketing.
Provide Options for Multi-Generational Living
Gen X homeowners face two competing storm fronts. On the one side, they may have aging parents who require support and care. On the other side, their grown children may struggle to leave the nest due to the current economy. Lenders can suggest home options that cater to multigenerational living.
Emphasize Flexibility
Remember — different Gen Xers may be in very different stages of life. At age 44, the youngest Gen Xers may have only recently started a family. And at age 59, the oldest are contemplating retirement.
Emphasize flexible lending options that adapt to this broad range of financial needs. Adjustable-rate mortgages or refinancing options, for example, can improve your generational marketing for Generation X.
Blend Digital with Depth
Digital marketing strategies can go a long way with Generation X. But don’t be afraid to give your content some depth. Gen X likes to research carefully before making a final decision. Ensure that your generational marketing content contains strong, educational content to nurture leads into making a confident decision.
Millennials
Millennials are those born between the ages of 1981 and 1996. Many millennials are at the peak age for buying a home. So what are the most effective ways to reach this group?
Establish a Brand Story
Emerging adults long for authenticity. Your brand story should answer at least two major “why” questions. Why are you passionate about the lending process? Why should a borrower choose you?
Answering these questions provides an opportunity to communicate your unique selling points. Millennials will be better able to connect with your company when they recognize that you have something unique to offer.
Stress Ethical Concerns
Younger home buyers tend to place higher value on ethical and environmental concerns. Generational marketing can therefore stress eco-friendly features such as:
- Energy Star appliances
- Smart thermostats
- Solar panels
- LED lighting
- Sustainable materials
Additionally, if your lending company contributes to your local community, it can go a long way toward building rapport with millennial clients.
Maintain a Digital Presence
It’s almost cliche to say that millennials are “digital natives,” but it’s true. You will need to maintain a strong digital presence to reach this group. Focus on developing the following:
- A clean, modern website
- An online chat feature that answers questions in real time
- An active social media presence
- Email marketing that targets borrowers at varying stages of the process
- Blog content that informs readers of the lending process
A customer relationship management (CRM) platform can help you build and maintain your web presence. With a mortgage CRM, you’ll have access to templates and customizable content that makes it easier to engage your primary audience.
Stay Engaged
While millennials may be at the prime age to purchase a home, they may lack knowledge about how the process works or whether they’re eligible for certain loan programs. You can engage young adults by providing things like blogs, videos, and infographics to inform them about the lending process.
For a more direct approach, use a chatbot. Chatbots can be integrated directly into your website, providing direct feedback to your visitors. Many mortgage CRM platforms offer a chat feature that lets you stay engaged with your customer leads and provide direct answers to common questions.
Showcase Customer Reviews
Millennials research carefully before they make a purchase. They want to know something about the experience and your reputation. You can highlight both by showcasing customer reviews on your website or social media pages.
Mortgage CRM platforms can also help you collect and curate customer testimonials. These testimonials make great generational marketing tools since your leads will hear from others in their demographic and learn more about your company.
Generation Z
Generation Z is the latest consumer generation to enter the housing market. Born between 1997 and 2012, Gen Z comes with unique perspectives and values. Here’s how to reach them.
Optimize for Mobile
Ideally, you already have a clean, modern website. But make sure your site looks good (and is easy to navigate) on mobile devices. Here, too, is where an interactive chatbot can be helpful, especially one that Gen Z can interact with right from their smartphones.
Leverage Influencers
Gen Z has grown up in the world of social media influencers. So why not use that to your advantage? It doesn’t have to be a celebrity. Leveraging the testimonials of real estate experts, lawyers, or local business owners can build a stronger connection to your Gen Z market.
Offer Interactive Content
While other generations were content with blog posts and infographics, Gen Z prefers more interaction. Short videos can help, but a mortgage calculator offers the most direct opportunity for interaction. Visitors can gain answers and insight unique to their financial situation. And you may have an opportunity to gain new leads along the way.
Highlight Innovation
Gen Z values innovation and flexibility. How does your lending practice accomplish these goals? You may gain traction by emphasizing lending options aimed at freelancers or others with non-traditional employment. You can also highlight mortgage products that distinguish you from other lenders.
Overcome Obstacles
Many Gen Z homebuyers are coming of age in an unstable economy. Young Americans are uncertain of their ability to finance a home in today’s market.
Your content should aim to not only educate these customers but also reassure them that home ownership is within their reach. Offer guidance on first-time buying programs that make it easier for new borrowers. Tell stories of past clients who have found success even through a difficult journey.
Using a Mortgage CRM for Generational Marketing
Many of these marketing goals can be accomplished with the aid of a mortgage CRM. For example, the BNTouch platform will empower you to:
- Create websites that look great on multiple devices
- Generate educational content about different aspects of the lending process
- Stay active on social media through pre-built templates
- Chat with web visitors in real time
- Create a borrower pipeline to nurture strong relationships
Additionally, the BNTouch platform has additional features to improve your productivity or help you network with other real estate professionals. Discover these features — and more — by scheduling a demo today.
Key Takeaways
- Understand Generational Preferences
Each generation has distinct preferences and communication styles that should be considered when marketing to them.
- Tailored Marketing Approaches
Customize your messaging and platforms based on the generation you’re targeting to increase relevance and engagement.
- Maximize Client Acquisition
By tailoring your campaigns, you can reach each generation more effectively, expanding your client base and increasing conversions.
Commonly Asked Questions
- What are generational preferences in marketing?
Each generation has unique preferences in how they communicate and engage with content, affecting how you should market to them.
- How can marketing approaches be tailored?
Messaging, platforms, and formats should be adapted to fit the specific generation’s preferences and behaviors.
- What is the impact of targeted campaigns?
Targeted campaigns increase client engagement, attract more clients, and improve conversions.
- Can this approach be applied to all generations?
Yes, each generation requires a different approach, but all can be effectively reached with the right strategies.
To learn more or schedule a demo, contact BNTouch today.
