How is Customer Segmentation driving Financial Services Sector

Posted by ujwal on July 23rd, 2019

Financial Services brand has its own unique marketing objectives and needs. With respect to these needs, marketers are focused on capturing customers from specific sectors in the industry. These sectors include banking, insurance, securities, etc. Financial marketers have certain target audiences within these sectors to whom they want to market to. To cater to these audiences, they need to duly sort them into groups or segments based on their shared attributes.

For creating the right customer segments, financial marketers depend completely on consumer data. This data has different facets to it which marketers need to tap. All these facets in one way or the other are related to customer behavior. As a result, behavioral data has become the primary determinant when it comes to creating precise customer segments.

 In the past, most user segments were built around basic demographic data. This included variables such as age, gender, income, and educational details of users. Although this method worked to a small extent earlier, it’s no longer relevant in today’s digital age. Customers flock to a financial provider’s website like bees. They are constantly in the search of products and services that can satisfy their financial needs.

 Each customer has a certain level of buying intent which drives his/her behavior on the website. If they don’t find what they are looking for, they immediately bounce. Banks, Financial Services, and Insurance companies should try to segment customers based on their digital behavior and then tailor their products and services accordingly.

Types of Customer Segmentation:

-Normal Segmentation

-Predictive or Intelligent Segmentation