The challenge for banks in their current state is to face the implications of a digital change. As technology increases at exponential rates, banks will be at a disadvantage trying to react “in the moment” to new competitors and features. This will disrupt the customer relationship and inevitably decrease banks wallet share.
Banks need to look beyond the immediate changes and view the ‘bigger picture’.
They will need to understand what digital engagement means to the banks and its customers at all generational levels. Banks will need to understand how digital engages their customers and build a comprehensive digital strategy that will deliver their message and build brand loyalty and trust.
For the purpose of our case, we will look primarily at the Baby Boomer demographic (ages 52 – 72), as they represent the largest challenge due to skepticism of the digital revolution. The Baby Boomers have lived through the sixties and seventies and are now financially stable, possibly retired adults. Their wealth has accumulated through
the decades and due to recent soaring real estate values, they will likely have sold their homes and downgraded to less strenuous living spaces.
This generation will have the added benefit of being much more loyal than the subsequent generation. Nostalgia is a selling factor to their demographic. However, Succeeding in the digital world is not about ‘out with the old and in with the new’; it is instead about truly understanding the needs of your customers, the shifts in your market place, the differentiation strategy of your business, and the best means for achieving success. We will outline the essential information for the case and begin to examine distinct channels to reach the consumer base.
- Objective: Promote BMO online & mobile banking services to drive digital awareness, adoption and engagement amongst existing customers not yet digitally engaged.
- Key Considerations: primary demographic skews older (avg. older than 52) and the leading barrier to digital adoption is security concerns.
- Timing: In market target of January – March (3 month timeline)
- Budget: $350, 000
- Success Benchmark: 100,000 New Digital Adoption/Conversions Increased Brand Recognition