Millennials are increasingly hitting the “home-buying age,” with as many as 17 million Millennials potentially buying a home within the next decade according to a TransUnion study. And, as the economy continues to improve and employment steadily increases, the number of Millennials looking to buy homes will continue to rise. With these numbers, Millennials represent huge opportunity for mortgage lenders.
Marketing mortgages to Millennials can be tricky, because they aren’t like other generation that came before them. Here are three things to keep in mind when engaging Millennial consumers:
Having entered adulthood during the housing recession, the tech-savvy Millennial demographic appears to be far more knowledgeable and cautious about the home purchase process compared to other generations. They want to work with institutions that are authentic, transparent and preferably mission-driven. And though Millennials need to be educated, engaged and encouraged through the mortgage process, they certainly don’t want to feel pushed. Keep your communications, advertisements and content as authentic as possible. Provide real, actionable advice, and don’t be afraid to share how your business ties into your company values.
Even with the multitude of financial planning resources in the marketplace, some Millennials may be unaware of the advantages of home ownership. Your marketing should explain in simple terms how financing works and what lending options are most suitable for their needs. Lenders should provide information seekers the tools to be smarter about the financing process and your creative approach —whether it’s your website, e-blasts, SMS text messaging, social media posts or programmatic display advertisements — should always foster education and empowerment.
Millennials are accustomed to transacting their business digitally, period. This is a group that will tirelessly conduct online research, resulting in a lot of shopping, comparisons and peer reviews. Understand that reviews matter. Lenders that are able to provide smart technology in tandem with high-quality customer service are more likely to attract and retain Millennial leads.
At the same time, your content should be optimized for social sharing, because social is the new word of mouth. If you’re going to create video content for social, it should be short in length, entertaining, captioned and communicate in a way that doesn’t assume Millennials have prior knowledge about the mortgage process.
Now is the time for loan officers and lenders to change perspectives and embrace the new generation of mortgage borrowers with authenticity and empowerment. After all, Millennials represent a massive opportunity for lenders. Taking a new approach to encourage, educate and empower Millennials throughout the mortgage process should provide you with winning results.
Best Rate Referrals has the tools you need to maximize the Millennial market. Contact us today and find out how you can begin using our new platform, Mortgage Advisor™, to find the Millennial leads you need.