GI Insight’s latest study into communications and marketing relevance has found that financial services firms are less successful than their retail counterparts.
Targeting standards in financial services sit a long way behind retail at 19% above the all-sectors average. Banks and building societies beat the all-sectors average by 3% and 1% respectively, but the general insurance (-2%) and credit card (-6%) sectors fall behind when it comes to personalised marketing and retention activity.
Perhaps most importantly, the study revealed that an overemphasis is being placed on targeting efforts towards younger age groups, in contrast with the 45+ consumer.
Banks are worst at targeting their communication to this age group (-6%), despite the fact that the 45-65 age band is in its highest earnings phase and therefore can generate the greatest profit from well targeted investment and money management products.
Andy Wood, Managing Director, GI Insight, comments: ““Financial services are missing a trick by neglecting to target the 45-65 age group. The departure of children from the family home often massively increases disposable income and, ironically, also creates demand for capital release financial products in parental support of those departed offspring as they set up home themselves.
“Customers have come to expect that they will be dealt with in a meaningful and personalised fashion. This expectation has meant that when companies do talk relevantly to their customers the rewards, in terms of customer retention and increasing value to the firm, are often stellar."
He added, "The research serves as guidance to those sectors that need to improve their standard of customer relevance and targeting, and shows, through the iconic gold-standard of the UK supermarket sector, what can be achieved."
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