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Marketing Credit Cards to Various Millennial Demographics

Stephenie Tuntland
4/24/2019
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Introduction

Financial companies need to revamp their marketing tactics in order to increase their millennial
customer pool. Millennials are interested in building credit, although hesitant due to possibly
building debt. This report will aid financial companies in modifying their marketing tactics to
millennial consumers. Provided below is an overview of millennial marketing tactics and
specific tactics for African American millennials, Hispanic millennials, and Caucasian
millennials.

Overview of Millennials

Financial companies should focus on building trust with millennials. “John Rampton succinctly
described a major issue facing US credit card companies: millennials” (“Credit Card Issuing”).
Millennials are hesitant to open credit card accounts due to the 2008 financial crisis. Millennials
who graduated college around 2008 have anywhere from $400-$8000 in monthly college debt
payments and are still paying it off (Pasquarelli). By displaying student debt services, more
millennials may be inclined to begin building credit.

Millennials that know their credit score

Percent of Millennials that know their credit scores

Know Credit Score Don’t know Credit Score

Source: “Millennials think cash will go away, but lack credit savvy”

The above graph shows that only a quarter of millennials know their credit scores. Millennials
want to work with financial companies that are honest and offer simple and transparent service
(“Millennials think cash will go away, but lack credit savvy”). A financial company with easy-
to-use services such as accessing credit scores, waving fees, and aiding in paying loans will
attractive the most millennial consumers.
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Black Millennials

African American millennials should be marketed to through social media. Financial companies
should offer freedom with service selection. African American millennials are responsible and
financially independent (“Marketing to Black Millennials”). This is a demographic group who
are open to expanding their credit. According to Bonetto, even the younger black generation
would respond well to financial company marketing as they have more money in cash then they
do in a bank account.

Largest Financial Challenges of Black Millennials

The figure above shows African American millennials financial challenges are 70% paying net
and 70% saving for net. They need a company that would aid them in both saving and paying for
their expenses.

Hispanic Millennials

Hispanic millennials would respond well to family planning services. This group wants financial
stability, a good family life, and a comfortable career and living situation. About 31% of this
demographic struggle to pay off their credit card debt (“Marketing to Hispanic Millennials-
US”). Allowing family planning is a great way to connect with Hispanic millennials on a
personal level and gain their trust.
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Hispanic Millennials Attitude Towards Social Media

The graph above shows the best way to market to Hispanic millennials. Sixty-five percent of
Hispanic millennials believe that social media posts encourage them to try new things. If
financial companies utilized social media to show their clients who switched from another
company, Hispanic millennials will be interested.

Caucasian Millennials

Caucasian millennials want accessible information on financial companies. They heavily

research credit companies before deciding which one would benefit them the most (“The real
reason millennials choose cash over credit cards”). Under the TILA act of 1968, credit
companies are required to disclose credit terms so consumers can make more informed decisions
(“Credit Card Issuing”). Providing accessible information on websites or social media would
make this decision easier for Caucasian millennials.

Social media has been on the rise and is the best way to reach millennials. Financial companies
have increased their use of digital branding (Pasquarelli). Millennials want to be financially
stable, they are just unsure which company would provide them with the lowest fees and
accessibility to credit scores.

Conclusion
Financial companies should modify their marketing techniques to reach millennials overall,
African American millennials, Hispanic millennials, and Caucasian millennials. Millennials
aren’t as active in the credit industry and other generations which stems from the 2008 financial
crisis and the industry lacking adequate marketing techniques that interest millennials.
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Reference Page

“Credit Card Issuing.” Encyclopedia of Emerging Industries. Farmington Hills, MI: Gale, 2018.
Business Insights: Global. Web. 25 Apr. 2019.

Bonetto. “Marketing to Teens- US.” Mintel Academic. 2015, May. Mintel Academic. Web. 8
Apr. 2019.

“Millennials think cash will go away, but lack credit savvy.” ATMarketplace.com 14 Mar. 2019.
Business Insights: Global. Web. 8 Apr. 2019.

Mitchell, T. “Marketing to Black Millennials.” Mintel Academic. 2018, June. Mintel Academic.
Web. 8 Apr. 2019.

Pasquarelli, A. “Banking on Youth.” Advertising Age. 22 Jan. 2018. Business Source Ultimate.
Web. 8 Apr. 2019.

Ruiz, J. “Marketing to Hispanic Millennials.” Mintel Academic. 2018, June. Mintel Academic.
Web. 8 Apr. 2019.

“The real reason millennials choose cash over credit cards.” Daily Herald [Arlington Heights,
IL] 23 Dec 2018. Business Insights: Global. Web. 8 Apr. 2018.