Gen X is Stuck in the Middle. Will They Stick with You?

Gen X is Stuck in the Middle. Will They Stick with You?

Generation X – defined by Pew Research Center as people born between 1965 and 1980 – got its name because it has always lacked a strong collective identity. But with this cohort hitting peak earning years – and poised to take over everything from corporations to Congress, banks and credit unions need to dive deeper into how to attract, serve and retain Gen X consumers.

It’s safe to say that Gen Xers are stuck in the middle. Demographically, of course, they are younger than Boomers but older than their Millennial and Gen Z counterparts. Like their elders, they’re not opposed to visiting brick-and-mortar banks; like younger consumers, they prize brands and companies that align with their values. And they’re highly attached to their smartphones, spending 21 hours per week on their device vs. 19 hours by Millennials. In fact, Gen Xers are some of the most voracious users of social media (logging seven hours a week) and checkers of email (spending five hours a DAY between work and personal accounts).

This generation is stuck in the middle in another significant way: according to Pew Research Center, 47% of adults in their 40s and 50s have a parent 65 or older while also raising a young child or providing financial support to a grown son or daughter. Being pulled in multiple directions can take a toll. Perhaps that’s why Gen Xers carry a heavy debt load – an average of $36,000 excluding their mortgages – despite being in the prime of their careers.

That isn’t to say they don’t have money to spend, save and invest. Indeed, they have disproportionate spending power, representing just one-quarter of the adult population but with 29 percent of net-worth dollars and 31 percent of total income dollars. A Shullman Pulse study commissioned by American Express found that Gen Xers prioritize saving, including for their children’s college educations. And they’re more likely than other groups to prioritize financial goals like buying a house, starting a business and leaving a legacy to their heirs.

Meet Gen Xers Where They Are

How can banks and credit unions capture the hearts and minds of these stuck-in-the-middle consumers? Meet them where they are – in every sense of the phrase:

• Use digital to deliver news they can use. This generation tends to invest a lot of time researching, and they’re very influenced by reviews and opinions shared online, especially via social media. As many Gen Xers balance multiple priorities, support them with in-depth information and advice. By serving up high-value content, you can potentially build positive buzz – winning Gen X loyalty and trust in the process.

• Tune in to the right channel. Gen Xers are active across channels – including small-screen mobile devices and larger-screen laptops and workstations. When they’re digging into research or performing complex tasks, they may opt for the larger keyboard and monitor. When making a deposit or checking a balance, they will grab their smartphone. No matter how they interact with their bank, they want a seamless experience. In the latest FIS™ Performance Against Customer Expectations (PACE) study, 75% of them rated “frictionless banking experience” as a top-three financial institution trait. Be sure your platforms deliver.

• Provide good value – and support their personal values. In the FIS 2019 PACE study, 61% of Gen X consumers reported switching financial providers for a better interest rate or offer. So, financial value clearly makes a difference. But these consumers are also looking for providers that align with their personal values. They want a bank that understands their desire to create security for themselves and their loved ones. And across sectors, they’re more likely to choose services or products that somehow help society or the environment. Consider innovative ways to incorporate social good into your customer experience.

Mobiquity can help you navigate the design and delivery of mobile and online self-service – so you can deliver the information and support Gen X consumer needs as they navigate busy lives and competing priorities.

In the next post, we’ll discuss some of the distinctive needs and opportunities of the Millennial generation.

Want to talk to Mobiquity about your digital strategy? Contact us to get started.