Life-stage segmentation for the BFSI Industry | Part 3

In a previous post, we looked at two specific life-stage segments for the BFSI Industry. Today we will look at the rest of the segments.

First Home Buyers

The audience profile: These are consumers who are usually in a serious relationship or married. They typically have one or more young children. They are financially getting better-off and may enjoy a dual income with consequent asset ownership.

The Marketing Opportunity: The financial needs of such customers change significantly. A family with young kids is usually more motivated to purchase a home. From the perspective of the bank or financial institution, this customer moves from being a low-value customer to a medium or high-value customer through one large loan transaction.

Established Families

The audience profile: This segment typically has older children and usually both parents continue working, either full or part-time. The audience members are starting to build some wealth or significantly pay off their loads and liabilities.

The Marketing Opportunity: The financial needs typically shift from loans to savings and investment accounts. This may possibly include business loans and retirement planning products and services. The upper age spectrum of this audience may be on the look-out for educational loans to fund the further studies of their children.

Retirees

The audience profile: These are consumers whose children have left home and they have typically stopped working and are enjoying their golden years. They no longer derive an income from employment but may derive income from assets acquired in their earlier years (Eg. Rental income etc)

The Marketing Opportunity: Such a segment presents a key target for long-term and loyal business. Their financial needs shift from loans towards retirement accounts, investment products and savings products. Pension products and annuities will surely be required. Depending on the quantum of wealth or assets held, some higher-order products like estate planning and trust funds may also be required.

It should be quite obvious by now how using life-stage marketing can help the savvy BFSI marketer derive more ‘bang’ for their marketing bucks. Not only does this type of segmenting ensure that the right audience is being marketed the right product at the right stage of life; it also ensures that they are at their most receptive when said products or services are being presented to them. This will ensure better conversions and more satisfied customers. 

When customers realize that their banks understand their specific needs, it strengthens the emotional bond. Such customers remain with the bank longer and ensure ongoing profitability.