One way to reach millennials: through extensive data gathering.

• Author: Shaw, Steven

That do banks have to do to find, attract and retain millennial customers? For starters, they need to get personal and use data-driven insights--not assumptions--to drive meaningful communications.

Many marketers draw conclusions about millennials based on demographics alone. That can be a mistake. For example, there is a widespread misconception that the best way to reach and interact with Gen Y is through mobile apps and other "shiny object" technology. The research suggests that this is not necessarily the case.

Another common misconception about millennials is that their reliance on technology means that traditional marketing channels are irrelevant or likely to be less impactful. In reality, this generation is more likely than the average adult to read direct mail pieces from banks and credit card companies. Additionally, they like to read and respond to a piece of direct mail from a company they recognize.

This particular insight creates both a marketing challenge and an opportunity. Considering nearly half of millennials are patrons to one banking institution, chances are another bank's direct mail piece could remain unopened. Digging deeper, though, reveals that a special offer or discount motivates nearly 56 percent of Gen Y'ers to open a piece of direct mail.

As banks fight to draw customers away from other financial institutions, this insight shows that incentives can mean the difference between a piece landing in the junk mail pile and one that converts a new customer.

So, how do bank marketers effectively engage millennials to make their products and services top of mind, build relationships and ultimately capture and retain customers? The key is developing communication that is highly personalized for each recipient. Hyper-personalized marketing takes into consideration consumers' very different needs and preferences, and creates highly meaningful, effective communication that creates connections and influences behavior.

For example, a 26-year-old male who recently moved into an apartment from his parents' house will be more attuned to messages from a bank that focus on no fees and cash back rewards, where another 26-year-old male who recently purchased his first home will respond to messages oriented toward low interest rates.

Identifying these two types of individuals and understanding what motivates them is just one of the many insights that can help marketers build targeted strategies; plan and deliver relevant programs at...