By Matt Boot, Chief Analyst at KDB.
1. Consider how customer behaviour will have changed
As the UK economy recovers, financial marketers need to consider the lingering impact that the downturn will have had on consumer behaviour.
While analysts have predicted that market recovery and job creation will begin to take off in the summer of 2010, another key consideration is how recovery will take shape in the perception of Britons.
The financial services sector, in its effort to rebuild confidence and lending activity, must take into account how its customers will respond post-recession. It should come as no surprise that recession-stricken consumers are not overeager to take more debt onboard.
2. Tailor services to mirror the demands and concerns of post-recession Britain
Research we recently commissioned found that in 2010 most Britons plan to save more and borrow less with young people most likely to be planning to put more aside.
Some 45% of respondents were determined to boost savings and 56% expected to borrow less. But the youngest respondents were more concerned about putting aside money - 68% of 18 to 24-year-olds said they intend to increase their savings.
The financial sector should focus on this significant shift in consumer behaviour in order to tailor products and services to match these needs. The latest target marketing techniques, informed by insight based on available customer data, should be employed to develop a range of compelling propositions.
3. Use customer insight to target communications
Banks and IFAs cannot afford to waste communication opportunities with individuals, particularly when marketing budgets are tight.
And yet the information locked in their own systems can open up a wealth of insight that will allow financial organisations to understand which products and services would be relevant to different customers. The challenge will be for banks and IFAs to respond in a targeted fashion to the individual requirements of their customers post-recession.
Our research revealed that young consumers in particular want to save more money next year, whereas older Britons want to decrease their debt instead of putting more aside. Information such as this is essential to consider when companies allocate marketing spend to communicate with existing and prospective customers.
When organisations then start to drill down into their own data and analyse it, this can further inform their marketing strategies for individual customers – or even prospects.
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