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Finance

Growing Share of Wallet by Segmenting Your Customers

Posted by Chris Kappen on Sep 19, 2017 10:00:00 AM

When it comes to the banking world, new-customer acquisition is all well and good, but it's a known fact that bringing on a new customer is a lot more expensive than cultivating an existing customer relationship.

Which is why the term "share of wallet" has gained so much popularity in the financial sector. After all, if you can get more of your products and services into the hands of customers who are already sold on your brand as a whole, the upsell should, in theory, be a no-brainer.

This is where segmentation plays a key role - take it from research group Deloitte, who breaks down customer types into four basic categories.

Up-and-comers

Deloitte defines the youngest of these key market segments as "basic users," or those generally younger than 45 who are in the beginning stages of their careers and thus tend toward lower wages and more just-the-essentials financial services needs. 

How do they think?

The study defined these customers as:

  • Being dissatisfied with their primary bank
  • Having a negative attitude toward banks in general
  • More digitally inclined
  • Likely to have very few financial products at either a primary or other financial institution

Bargain hunters

The next of Deloitte's segmentation categories the group defined as those over the age of 45 with mid-level or somewhat high-level wages, or the "value shoppers." This is a group that seeks out bargains and best rates for their financial needs, which are a bit more advanced than the basic users.

How do they think?

The study defined these customers as:

  • Being very dissatisfied with their primary bank
  • Fickle with loyalty when it comes to fee hikes
  • Equal-opportunity with brick-and-mortar and digital channels
  • Likely to have very few financial products at their primary bank and several at other financial institutions

Big spenders

Next up on the list are those particularly affluent consumers that Deloitte defines as "diversifiers." The hallmarks of this group include those aged 45 or older and customers with a wide variety of financial services needs.

How do they think?

The study defined these customers as:

  • Very satisfied with their primary bank
  • Having a highly vested interest in their personal finances
  • Most engaged customers on both brick-and-mortar and digital channels
  • Likely to have quite a few financial products at both primary and other financial institutions

Loyalty builders

Finally, the research defined those customers who are most loyal and are in the thick of or approaching retirement as "consolidators." These customers generally have low- to moderate-level wages and live on fixed incomes.

How do they think?

The study defined these customers as:

  • Being most satisfied with their primary bank
  • Having the most positive attitude about banks in general
  • Most active users of ATMs
  • Likely to have quite a few financial products at their primary bank and very few at other financial institutions

Choose Wisely

Keep these major segmentations in mind in your marketing - it'll help you dictate what products to push at what stages of the customer lifecycle. Pick the best channels to reach your likeliest of customers and watch that wallet share expand.

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Source: Deloitte