Millennials have different values and priorities than other groups. Here’s how you can connect with them
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The generation gap is alive and well in the mortgage industry. According to recent statistics, the average originator is a Baby Boomer in his early 50s – a very different demographic than the young, tech-savvy millennials who are shopping for first homes.
These new customers – who range in age from early 20s to late 30s – have very different values and priorities than past generations, making communication a challenge at times.
“There is a disconnect. A lot of us are not the millennial demographic, and the next wave of our buyers – that’s who they are,” said Dan Green, CEO at Growella, an Ohio-based fintech company focused on millennials.
So what strategies work with the next generation of homebuyers?
Green joined Jason Ashman, head of business development & partnerships for HomeExpert, and Josh Lehr, industry development manager for Mortech, to share their best tips. The trio spoke at LeadsCon, a lead-generation conference held in Las Vegas earlier this month.
Strategy #1: Diversify your communication channels
Millennials are famous for their devotion to new technology, particularly smartphones. Constant communication across every type of social media – Twitter, Instagram, Snapchat, etc. – is the name of the game. Emails, text messages and apps are also effective for these tech-oriented customers.
As a result, your websites and digital platforms must be fast, eye-catching and easy to use.
Online testimonials are also critical: the majority of millennials say it’s important to read reviews before selecting a service provider, and mortgage professionals are no exception.
To stay in control of your online reputation, solicit reviews from satisfied customers.
Strategy #2: Connect quickly
While millennials typically begin their searches on apps and digital platforms, they do want to connect to a real person, and fast. Reaching out to them quickly is critical to keep the conversation going and close the sale.
This focus on speed also means that millennials can get impatient with lengthy online forms that request a lot of information before the initial contact. To reduce barriers, trim your forms to the bare essentials. In many cases, all you really need is an email address and phone number to connect with the potential borrower.
Strategy #3: Speak their language
Different language resonates with different generations, so messages must be reframed for a millennial audience. Baby Boomers might like to hear that they “earned their homes” by working hard and saving money. But millennials would prefer the message that they “deserve the good things in life,” including a home.
Informational videos and blog posts have proven to be particularly effective with younger buyers, though it can take time to create a strong brand. Once you’ve developed enough quality content, millennials will come to you with follow-up questions – and often become customers.
Strategy #4: To hire millennials, be transparent about company finances and practices
Many lenders are hoping to recruit more talented, young employees, and, again, the best practices are a bit different for this demographic.
Millennials generally care much more about a company’s principles and political stances than earlier generations – and they will pass over firms that don’t align with their personal values.
In one notable case, Papa John’s founder John Schnatter created controversy in 2012 when he criticized the Affordable Care Act. This fall, Schnatter went a step further and blamed low pizza sales on football players’ protests during the national anthem. His remarks drove away liberals and cost Papa John’s millions.
Many lenders don’t want to adopt any stance on politically charged issues, but that approach can create different challenges. Millennials are motivated to work for companies that espouse positions they support, making it tough to strike the right balance.
Transparency and growth are also key millennial values. Young employees need to see a clear path forward that will allow them to rise through the ranks and meet their careers goals. They also want to feel like their voice matters within the company. To create a culture of openness, top executives should be accessible to all employees – for instance, through a regular video chat – and welcome their feedback.
