Value Is Universal, Delivery Makes It Generational

Today at a Glance:

• Consistency in Value, Creativity in Connection
• In Volatile Times, Retention Trumps Acquisition
• Upgrade The Experience, Not Just The Fees
• Control The Journey, Control The Loyalty
• BofA Gives FS Goals A New Meaning
• Everyday Needs Or Essential Goals: SoFi Covers Both Ends

Consistency in Value, Creativity in Connection

In today’s fragmented marketing landscape, it’s easy to believe that each generation needs a completely different product. However, in financial services, the underlying needs are remarkably similar. The secret to success lies in delivering the same value proposition in ways that resonate with each group—meeting them where they are, both in terms of content and medium.

Ultimately, “one size fits all” isn’t about forcing everyone into the same mold. It’s about recognizing that the core benefits of a well-designed financial services product resonate across generations, as long as we tailor the message to speak to what each group values most.

This made me go down a rabbit hole and look at the positioning of current value props and as one would expect, the majority of our product value props are designed with universal appeal and the targeted marketing is where the generational dissimilarities are addressed by highlighting areas of higher importance.

We've previously talked about?Marketing to Gen Z?and?Marketing to Millennials. Today, I wish to highlight Marketing to Baby Boomers.

Below, I have noted some differences between the demographics that are easy to address via marketing -- meet them where they are.

Hiro has some strong takeaways from this report. He also authored the reports on Marketing to Gen Z?and?Marketing to Millennials. So, if you wish to dive deeper into the differences between generations let me know and we can set up a chat with Hiro.

In Volatile Times, Retention Trumps Acquisition

Lierin has a report on U.S. Banking & Deposits Predictions for 2024

Federal rate cuts are guaranteed to come sooner than later; for deposit brands, the clock is ticking on how to make the most out of the high-rate environment.

Upgrade The Experience, Not Just The Fees

Vivian's latest report is on Innovations in FS Loyalty Marketing

Brands are prioritizing experiential marketing, enhanced benefits, and acquisition-like balance transfer offers to reactivate loyal customers.

Better at Travel: A rising demand for business and leisure travel has led issuers and carriers to reevaluate travel programs. Over the past few months, American Express has run a series of credit card upgrades, alongside fee increases, to introduce new statement credits and enhanced rewards in wider categories.

Easy on Debt: High delinquency has put many cardholders in debt. To help customers reduce interest expenses, brands are stretching the promotional periods for a 0% APR. This financial cushion enables individuals to consolidate debt, better manage their finances, and regain financial stability more easily.

Lavish?with?Fun: Consumers seek to compensate for what they've missed during the pandemic, such as travel and entertainment activities. Companies increasingly lean on experiential rewards, offering members access to exclusive events and trending venues that resonate with their interests.

Control The Journey, Control The Loyalty

Travel Portals are a "thing" credit card issuers offer. Among the many changes we'll look back to, the pandemic will be the moment when this transition was completed and it's now just going to be the norm that I use my PCC's (primary credit card) travel portal to book my travel.

Credit One is the latest entrant relaunching their Wander card, this time on American Express, offering enhanced earn on travel booked via Credit One Bank Travel Portal. Credit One announced its partnership with Priceline back in Sep 2022 and relaunched the new Wander card earlier this month.

BofA Gives FS Goals A New Meaning

BofA announced they are the Official Bank Sponsor of FIFA World Cup 2026, which will be hosted in North America. As the World Cup comes to North America (the majority of the games in the U.S., a few in Canada and Mexico), it's a great opportunity for BofA to "own" an international sport that is going to be top of mind for consumers in 18 months.

Everyday Needs Or Essential Goals: SoFi Covers Both Ends

SoFi announced two new "invitation-only" credit cards last month. While a soft launch i.e., pilot, these are a natural extension for SoFi's product suite. In light of Credit One's travel card announcement, I await one from SoFi perhaps too.

I do like that SoFi continues to keep the redemptions within their ecosystem primarily, which is a trend I am surprised the rest of the industry has not fully embraced, yet.

Thank you for reading!

As ever - Anuj