Segmentation Critical to Finding Actionable Intel on Banking Consumers

by Edward O'Brien 0

Age and income aren’t the only ways to break down financial consumers. This study’s segmentation model reveals some interesting differences in how people think about banking and relate to their primary financial provider.

Saylent commissioned a study through Informa Research Services to assess consumer and small business banking preferences and the depth of relationships they have with their financial institutions. The research findings provide key insights into how different groups prefer to interact with their bank and the products and services they desire.
The study breaks down participants’ responses into four distinct segments:

Lower Mass Market – investable assets from $1,000 to $25,000

Upper Mass Market – investable assets from $25,000 to $100,000

Mass Affluent – investable assets over $100,000

Small Businesses – $250,000 to $1 million in annual revenues

Salyent didn’t just analyze audiences according to one parameter though. Like The Financial Brand, they are big believers in the principles of segmentation — keep drilling down. Is their study, Saylent cross-examined their data using other factors besides level of investable assets, including age group and banking status.

“The large underbanked and Millennial markets present a substantial opportunity for customer growth and revenues,” observes Tyson Nargassans, CEO/President of Saylent. “Banks and credit unions that differentiate, and package products for different audiences — including incentives and rewards for specific behaviors — will drive adoption, more effectively serve customer needs and bolster satisfaction and loyalty.”

This research on market segmentation is consistent with Mercator Advisory Group findings on market segmentation and finding and engaging with appropriate banking customers for a wide variety of products and services. This Mercator research has also found that targeting specific market segments using customer and predictive analytics can get financial institutions closer to the elusive goal of one-on-one marketing, and in building long-term, profitable relationships.

Overview by Ed O’Brien, Director, Banking Channels Advisory Service at Mercator Advisory Group

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