Targeting Emerging Consumer Segments The Recession-Proof Consumer

Targeting Emerging Consumer Segments The Recession-Proof Consumer published by Datamonitor in October, 2009. This report consists of 48 pages and the price starts from US $ 4495.

Introduction

Abstract

Introduction

Recession-Proof consumers have emerged from the recession without experiencing a negative effect on their lifestyle. As such, they represent potentially the most profitable segment for FS providers to target as economies emerge from recession. FS providers must therefore understand what these consumers want and how their Recession-Proof status may influence their behaviour.

Scope of this research

• Using data from our global FSCI survey this report profiles the attitudes and behaviours of the emerging Recession-Proof consumer segment
• The report identifies these consumers and analyses the drivers of their future behavior
• The report provides concrete actions for FS providers to position themselves competitively in order to capture a share of the Recession-Proof wallet.

Research and analysis highlights

Although increasing demographic complexities means that age segmentation has become over simplistic, more Recession-Proof consumers have emerged in younger age segments, so FS providers must capture them now as they plan for the future.

Recession-Proof consumers have been found to be significantly more receptive to financial advice than the average consumer. However, they have a more well rounded and financially intelligent approach to their research than the average consumer and therefore require a range of channels at their disposal through which to obtain advice.

Recession-Proof consumers' have generally happier than the average consumer, and but this has not led to complacency. Rather, they are motivated to take actions which maintain both their financial security (saving more) and lifestyle (spending more).

Key reasons to purchase this research

• Access the results of Datamonitor' s Global FS Consumer Insight survey in order to profile this key emerging Recession-Proof segment.
• Identify why the Recession Proof consumers are potentially the most profitable segment and predict their future behaviors.
• Identify strategies you can take to effectively gain share of the Recession-Proof wallet.

Table of Contents

OVERVIEW

• Catalyst
• Summary
• Methodology

INTRODUCTION

• Customer segmentation is vital for an effective marketing strategy
  • The recessionary environment is forcing providers to make decisions
  • Recession-Proof consumers are a valuable target for providers

THE FUTURE DECODED

• Trend: Recession-Proof consumers are not distributed according to expected geographic and demographic patterns
• Insight: Economic factors do not dictate Recession-Proof behaviors
  • Recession-Proof consumers are found in the fastest growing emerging markets
  • Perception gaps are particularly apparent when looking into the emergence of Recession-Proof consumers in the rest of the world

• Insight: Recession-Proof consumers behave similarly across all demographics
  • Younger age segments appear to contain the most Recession-Proof consumers
  • Demographic distribution of Recession-Proof consumers is similar in all regions

• Trend: Recession-Proof consumers have greater appetite for FS products
• Insight: The difference between the Recession-Proof consumer and the average consumer is particularly obvious in savings behaviors
  • Instant access savings products are also the most popular other product held with the primary bank

• Insight: Recession-Proof consumers will look outside their primary bank for their FS needs
  • Primary bank loyalty is relatively weak in developed markets
  • There is huge opportunity for other FS providers to capture share of the Recession-Proof wallet

• Insight: Recession-Proof consumers use a variety of sources for advice
  • Recession-Proof consumers can afford professional advice but still shop around for the best deals

• Insight: Recession-Proof consumers are more trusting of the FS industry than the average consumer
  • Recession-Proof consumers have had less negative experiences

• Trend: Recession-Proof consumers' future actions are aligned with their optimism
  • Recession-Proof consumers are generally happy - across all elements of their lives

• Insight: Despite being economically secure they are not lazy with their finances
  • Recession-Proof consumers are motivated to take action in order to maintain their financial security
  • Recession-Proof consumers also plan to maintain their quality of life whilst remaining Recession-Proof

ACTION POINTS

• Action: Emerging markets can provide valuable lessons for FS providers
  • Yes Bank is has been a key innovator in the Indian banking sector
  • Improve the in-branch experience is reflected in Western banking strategies

• Action: Understand the value of Generation Y
• Action: Focus marketing efforts on product value and financial security
  • Provide multiple channels for financial advice
  • Target Recession-Proof consumers for savings, pension and life insurance products

• Action: Datamonitor' s Megatrend Framework can help identify strategies for targeting this segment
  • Recession-Proof consumers desire elements of the Connectivity Megatrend in their financial needs
  • Capture Recession-Proof consumers through highlighting the Convenience of the offering
  • Individualism is invaluable to the Recession-Proof segment

APPENDIX

• Data tables
• Definitions
  • The Datamonitor Financial Services Consumer Insight Megatrend Framework

• Methodology
• Further reading
• Ask the analyst
• Datamonitor consulting
• Disclaimer

TABLES

• Table: Recession-Proof and non Recession-Proof consumers segmented by country
• Table: Recession-Proof and Non Recession-Proof consumers, segmented by age
• Table: Recession-Proof consumers segmented by region and age
• Table: Proportion of Recession-Proof consumers and global consumers with two or more financial service products
• Table: Levels of product holding for each other product held with primary bank
• Table: Number of non-current account products held by Recession-Proof consumers with primary bank, by region
• Table: Drivers of financial decision making for Recession-Proof consumers and the average global consumer
• Table: Indicators of trust for Recession-Proof consumers and the average global consumer
• Table: Expectations for the next 12 months for Recession-Proof consumers and the average global consumer
• Table: Actions over the next six months for Recession-Proof consumers and the average global consumer

FIGURES

• Figure: Most Recession-Proof consumers are based in China, Brazil or India, although Russia is an anomaly
• Figure: The distribution of Recession-Proof consumers in BRIC appears to correlate with the economic impact of the recession on those countries
• Figure: The 18-24 age segment contains the highest proportion of Recession-Proof consumers
• Figure: Distribution of Recession-Proof consumers by age segment is similar in all regions
• Figure: Levels of product holding are higher amongst Recession-Proof consumers for all products in comparison to the global consumer
• Figure: Holding levels of non-current account products with the primary bank are lower amongst Recession-Proof consumers
• Figure: Asia Pacific Recession-Proof consumers show the least primary bank loyalty
• Figure: Recession-Proof consumers seek financial advice from a wide variety of sources
• Figure: Recession-Proof consumers are more trusting than the average consumer
• Figure: Recession-Proof consumers are far more optimistic on all accounts in comparison to global consumers
• Figure: Recession-Proof consumer intend to take actions which will keep them Recession-Proof
• Figure: YES Bank has been technologically innovative in its branch design
• Figure: Barclays pilots Microsoft Surface technology in its concept branch, launched in December 2008
• Figure: Harnessing new connective technologies such as Twitter will help engage younger Recession-Proof consumers
• Figure: Virgin' s Climate Change ISA is a prime example of ethical and green credentials

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