Digital channels have given FIs a new source of information for segmentation purposes: consumer behavior.
Boston, April 9, 2013 – A new report from Aite Group segments consumers by financial behavior and explains how financial institutions can harness this approach to improve their marketing efforts. Based on a Q2 2012 Aite Group survey of 1,115 U.S. consumers, this report uses behavioral segmentation to define consumer segments by financial activity, examines the Referral Performance Scores of these segments, and reveals related opportunities and concerns for financial institutions.
Financial services marketers are continually in search of new consumer-segmentation approaches that will help them gain insights, identify opportunities, and improve their marketing efforts. While many FIs segment consumers by demographic or relationship breadth, the increasing use of digital channels has given FIs a new source of information to use for segmentation purposes: consumer behavior. Assigning a score to the frequency of various financial activities yields information about which consumers perform specific financial activities frequently, and segmenting consumers using this approach can give an FI insight into who its best--and possibly, worst--customers are.
“Segmenting consumers by how many products they own does little to help banks and credit unions improve marketing effectiveness,” says Ron Shevlin, senior analyst with Aite Group and author of this report. “Tracking consumers' engagement with their financial lives is a good predictor of customer relationship growth and referral behavior, and it will help banks and credit unions improve the relevance and focus of their marketing communications.”
This 20-page Impact Note contains 17 figures. Clients of Aite Group's Retail Banking service can download the report.