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Meeting the Needs of the New Financial Consumer: A Snapshot of Six Customer Segments

July 7th, 2011 |

FD-WhitePaper1.jpgConsumers have a lot of options when choosing a bank or credit union. To be successful in today’s highly competitive environment, financial institutions must creatively and innovatively meet their customers’ needs and expectations. However, consumers are not a homogenous group—and attitudes, behaviors and expectations related to desired products, communication tools and service vary dramatically.

Even more challenging for financial institutions, consumers are rapidly evolving in their use of technology. As consumers increasingly use technology in their day-to-day lives, many expect the convenience of high-tech tools from their banks and other financial institutions. At the same time, a persistently weak economy, the widespread erosion of savings and investments, and the lending crisis have fundamentally altered many consumers’ mindsets. Especially among baby boomers—the backbone of financial industry growth over the last 25 years—confidence in financial institutions and a willingness to engage in carefree spending appear to be things of the past.

So, how can financial institutions best meet the needs of a diverse and evolving consumer base? To find out, First Data and Market Strategies International jointly conducted an online survey of 2,000 U.S. consumers. The “New Consumer and Financial Behavior” study looked at consumers’ attitudes, behaviors, desires and technology adoption. The results revealed six distinct consumer segments, providing financial institutions with valuable insights into opportunities and challenges associated with different types of customers.

By understanding the needs and expectations of different consumers, financial institutions can:

  • Determine which types of consumers are most valuable.
  • Target products, technology and tools at specific customer groups.
  • Improve customer retention through targeted customer loyalty programs.
  • Better service customers by meeting their needs and expectations for products, services, communication and technology.

This white paper is the first in a series of four based on results of the “New Consumer and Financial Behavior” study.

About the Study
The “New Consumer and Financial Behavior” study was conducted jointly by First Data and Market Strategies International, a market research consultancy. During March 2011, 2,000 banked consumers (who have at least one account at a financial institution) completed an online survey of their attitudes, behaviors and expectations pertaining to their primary financial institution, as well as their adoption of related technology. All respondents were individual or household financial decision-makers recruited from the uSamp opt-in online panel of U.S. adults. For purposes of analysis, respondents were grouped into six consumer segments using a sophisticated and robust segmentation approach that combines demographics, attitudes, behaviors and values to create comprehensive, instructive consumer profiles. A full description of the research methodology is included on p. 13.

Around the world every day, First Data makes payment transactions secure, fast and easy for merchants, financial institutions and their customers. We leverage our unparalleled product portfolio and expertise to deliver processing solutions that drive customer revenue and profitability. Whether the payment is by debit or credit, gift card, check or mobile phone, online or at the point of sale, First Data helps you maximize value for your business.

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