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Fewer campaigns, more personalization yields results for retail bank marketers

December 16, 2016

Among these messages are promotions for a vast array of financial services product offerings, contributing to the increasingly competitive and challenging marketing landscape for retail banks.

To maximize the effectiveness of promotional campaigns, bank marketers should consider promoting fewer products to the right people at the right time in a personalized fashion. Certain financial needs tend to consistently surface at distinct phases in a consumer’s life, and financial services providers can tap into these patterns through an approach known as generational market segmentation.

To apply a generational market segmentation approach to your bank’s marketing strategy, consider targeting one integrated promotional campaign per quarter to align with one of the following generational market segments:

  1.    Debt Eliminators: The top financial concern of recent college graduates and young professionals isn’t saving, it’s working off debt. Recognizing Debt Eliminators’ singular focus and offering actionable advice, convenient technology and no-fee account options can build a strong foundation of loyalty among young professionals and recent college graduates.
  2.    Life Builders: As young professionals move up the corporate ladder and increase their earning potential, their banking needs will expand into loans and investments. Consumers in this phase are commonly between the ages of 30 and 40 and are ready to implement a disciplined approach to saving for a major life event such as a wedding, buying a home or having a baby. Useful saving and borrowing calculators, appropriate online how-to guides, and competitive loan promotions are useful to individuals in the Life Builder phase.
  3.    Wealth Accumulators: Individuals enter this stage when their priorities shift from enhancing their day-to-day lifestyle or building their family to growing a nest egg. These consumers are usually between the ages of 40 and 55 and are sending children to college, considering downsizing their home or planning for retirement. Personalized customer service and advice, user-friendly retirement calculators, and attractive investment options will resonate with the Wealth Accumulator audience.
  4.    Wealth Protectors: This is the baby boomer segment — the second-largest segment of our population. These consumers are notable because they are working and living longer than anyone ever anticipated, making for unique financial needs. It’s important to build trust among consumers in this segment by offering consistent personalized advice, comprehensive online banking technology (providing a clear view of their entire financial portfolio) and conservative investment options.

Whether they are young millennials looking to eliminate student loans or baby boomers reaching retirement, bank consumers today are seeking out highly personalized products and services and improved technology to manage their finances. Prioritizing products and services that meet an audience’s needs at the right time and in the right place is a cost-effective approach to growing brand loyalty and sales with new and existing customers.