When discussing projects with clients, we frequently get told that their target market is older people rather than younger generations. To a large degree, this makes complete sense.
Some financial services are not that relevant to younger people, such as inheritance tax planning or pension services. And many young people don’t consider investment options because they don’t have as much saved as older people. And let’s not forget that getting on the property ladder - and therefore needing a mortgage - has never been harder.
Why is having a target market important?
Knowing your target market is an essential part of running any business. If you don’t know who your target market is, it makes advertising, online marketing and creating a successful brand a roll of the dice to get right. Your target market is what influences many business decisions, especially when promoting your brand and services. Without a target market in mind, you can easily waste the money you invest in marketing services.
Reasons why young people matter too
Financial service providers may want to start targeting the younger generations as they may not be the “waste of time” they once thought. Here are some reasons why:
- The majority of younger people are more financially literate than they have ever been in the past thanks to various initiatives, often set up by education institutes and banks
- Younger people who kept working throughout the pandemic boosted their savings to levels they have never had before
- Reuters reported that the pandemic and increased savings pushed millennials to take an interest in investing, especially the stock market
- The UK Government has launched a new initiative to get (young) people to buy their first property thanks to 95% LTV mortgages
- The above could create increased demand for property, contents and landlord insurance among young buyers
- By creating a relationship with younger clients today, they will remember your brand in the future when they may require services usually taken up by older people
How to target the younger market
Targeting younger people does not require a radical change to your website or marketing campaigns. You may simply decide to use images of younger people or adjust the language on some website pages and marketing content.
If you want to really tap into this emerging market while your competitors are looking the other way, you might decide to set up a new website completely dedicated to the services younger people now want. This may involve a new trading name and new branding.