It’s no secret that Generation Y (also referred to as Generation Y: born 1981-1996, currently aged 25-40) is well positioned to have a substantial and lasting influence on the real estate industry. What fewer people realize is that the Centennials (also known as Gen Z: born 1997-present, oldest currently 24) aren’t far behind. In fact, millennials have made up the largest share of home buyers since 2014, and currently represent 37% of home buyers. On the Gen Z side, mortgages are the fastest growing credit product among this generation, growing 52% year-on-year. Realtor.com says Gen Z could surpass many millennia financially because Gen Z has a more stable foundation to build on.
To ensure that your mortgage business does not miss the growth driven by these younger generations, it is essential to sustain your marketing. It may mean rethinking the way you engage with prospects and customers.
Show them who you really are
This audience cares about the common good and tends to seek out companies whose ethics and philanthropy match theirs. This is especially relevant in commoditized markets like mortgage lending, where a brand’s history and mission is a critical competitive differentiator.
These generations value diversity and are socially aware of a wide range of issues. They put their money where their hearts are. For example, during COVID, Millennials and Gen Z were, respectively, the most generous first and second generations when it came to sending financial aid to family or friends and donating to organizations. non-profit.
These young people are actively looking for ways to get involved and make brand choices based on their values. For example, 44% of Millennials say they will only buy from brands that share similar social or political views.
It’s also important to note that these customers have the potential to remain loyal to a brand: 60% of millennials remain loyal to the brands they buy from. These are excellent chances for increased lifetime value.
Know how and where to get involved
These generations are online and on social media. They are used to the seamless and very convenient digital experiences provided by the best known and most sophisticated brands in the world. They expect the best.
It is essential to meet these buyers where they are. You need a large, engaging digital presence that avoids the hype and buzz. (They can see through that, and they’re done with it.) You need to adopt an omnichannel marketing strategy that includes not only your website, but email, text, chat, social media, and more. even the apps. In short, these people demand instant access and instant responses. You may also want to consider ways to shine the spotlight on positive reviews, as these buyers tend to be skeptical by nature: 40% of them regularly refer to reviews and testimonials before making a purchase.
Your content should be educational and position your brand as a mentor, trusted ally, and advocate. Sixty-five percent of Gen Z are unconfident in their knowledge of the mortgage process and would turn to a real estate agent (58%) or the internet (54%) for more information. Bridge this gap to gain their trust.
Using technology the right way
Millennials are very tech savvy and Gen Z is the first generation of “digital natives”. They love technology, not for the sake of technology, but for the way it makes their lives easier. “Experience” is the key word when thinking about how to reach and engage this audience. They want intuitive, customer-centric, transparent, integrated, secure and personalized interactions. About 70% of all Gen Y and Z consumers are more willing to share personal information with an app in exchange for more personalized or convenient services.
Take advantage of the opportunity
Mortgage Professionals now have a great opportunity to engage these influential audiences and lay the foundation for valuable client relationships that will last for years to come. Partnerships with like-minded organizations can play a central role in supporting these efforts. Birchwood is a leading provider of credit services and a company that has built its reputation on providing service that thrills. We would love to help you delight your customers as well. Visit birchwoodcreditservices.com to learn more.