5 behaviour segmentations of banking consumers
The Banking industry finds that it is no longer effective to distinguish its customers based on age and generation. To be the leading financial brand in the digital world, knowing customers is a key to success since you can approach the targeted market more accurately.
The US analytic team surveyed over-18-years-old customers and found that, not only age variable, but marketers can possibly divide the banking customers into five distinguish segmentations based on their behaviour and interest.
This group of persons actively and confidently manage their financial health, but they are not expert in technology.
Strategy – Offer excellent traditional services and traditional financial planning tools, don’t forget to highlight ‘excellent’ since they value it. Don’t wow them with something new or you may chase them away instead.
The largest segment of customers belong to a group, unfortunately, that do not really care about their own finance and aren’t prioritising any saving or financial planning.
Strategy – Approaching Precarious Passives require hard-work and, according to the research, the effort may not be worth it. What we suggest here is to spend your valuable resources on the four other smaller and profitable consumer segments instead.
These customers are future high-profit customers, young and tech-savvy. They are eager to try new things, whether an application or product, and have a passion to invest with creditable financial brands.
Strategy – Invest more to high technology features because this group cannot be impressed with anything other than your sophisticated digital capabilities.
We are not discriminating but most of the people in this group are female customers. They do dream about better life like a vacation home or luxury brand-name item but they worry about being in debt.
Strategy – Make them feel secure financially by offering low risk investment. Moreover, educate them about financial literacy and introduce them to automated personal management tools.
The smallest segment represents the confident and young investors. They trust in their financial literacy and do not hesitate to leave any financial institute for a more attractive offering.
Strategy – Most of them believe that fiscal institute will be cleared off in a decade. For this segment, your core competitors are not the other banking brand but the non-traditional provider, like Fintech companies.