Retail Banking and iGen: Now What?
After looking at another disappointing quarterly report for new accounts, Patty, the V.P. of Retail Banking for Second Peak Bank, was convinced that immediate action needed to be taken. Faced with six consecutive quarters of declining new accounts (checking, savings, and loans), Second Peak was at what Patty believed to be a critical tipping point. An initial dive into the data revealed that over the last several years the decline in new accounts was largely the result of young adults (18-30 years old) not participating in traditional banking activities as other generations of the same age in the past. Patty wondered how this new market segment was different than the other older generations. Should the bank communicate differently to them? If so, what messages would they respond to? And what should the bank’s marketing strategy and tactics be moving forward?
In completing this assignment, students should be able to:
1. Develop a marketing strategy based on knowledge of the consumer decision-making process specific to the brand and market dynamics
2. Analyze specific generational demographic, psychographic, and cultural changes that might affect developed marketing strategy and tactics
3. Apply data to create varying marketing communication tactics for a defined target market
Application
This critical incident is designed for use in upper-level undergraduate marketing management, buyer behavior, or integrated marketing communication courses. This case allows students to discuss and develop strategic plans and tactics for a new market segment in the banking industry for iGen/late millennials based on an actual situation and data collected from consulting work.