Monday, 22 August 2016

Introduction to Life-stage segmentation for the BFSI Industry

Before we dive deeper into life-stage segmentation, here are a few questions for you to ponder:
  • ·         Do you remember the day you graduated? How did you feel right then?
  • ·         How about when you bought your first car? What did you do to celebrate?
  • ·         Now when you moved into that first home of your own, how did that make you feel?
  • ·         The birth of your first child; what emotions did that event unleash?


You get the picture. All of these events are important milestones in your customer’s lives; just as they are in yours! Most people go through some or all of these “life-stages” during their time on this earth and each stage has its own requirements and specific triggers.

Marketing to your customers without taking into consideration their current life-stage (and hence financial requirements) is like trying to sell with a blindfold on. You have no idea who you are targeting! Most people go through typical life-stages. These could include:
  • ·         Moving out of home for higher studies; Graduation
  • ·         The first job; probably a move to a different city
  • ·         First vehicle purchase
  • ·         Marriage – the typical ‘settling down’ phase
  • ·         The first home purchase
  • ·         Birth of a child; consequent change in priorities
  • ·         Established families; life goes on
  • ·         Children move away for further education/jobs
  • ·         Second home purchase; wealth creation and consolidation
  • ·         Retirement
  • ·         Death


This is not supposed to be morbid or to remind you of your mortality! It is just an attempt to show the stages that most of us go through and the consequent impact it has on our financial needs. Marketers who are cognizant of these life-stages have the ability to reach out to audiences with just the right products they need at the right time when they need them. Those who operate with a one-size-fits-all approach are more likely to spend more and convert a lot less.


You decide which category you want to belong to! In another post we will examine just how you can reach out to and target specific life-stages.

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