Targeting Emerging Consumer Segments The Conscientious Consumer

Targeting Emerging Consumer Segments The Conscientious Consumer published by Datamonitor in January, 2010. This report consists of 80 pages and the price starts from US $ 4495.

Introduction

Abstract

Introduction

Regardless of affluence, Conscientious consumers have emerged from the recession with the flexibility to repay their debts on time every month, and this reliability along with other key attitudes and behaviours mean they are represent a valuable segment for FS providers to target. Providers must understand what these consumers want and how their Conscientious status influences their behaviour.

Scope of this research

• Using data from our global FSCI survey this report profiles the attitudes and behaviours of the emerging Conscientious 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 Conscientious wallet

Research and analysis highlights

Their appetite for notice savings accounts matches that of instant access savings, and yet a significantly higher number look to other providers for this product. The apparent preference for holding instant access savings products with the primary bank is therefore misleading.

Though seemingly debt-averse, Conscientious consumers have more credit cards than the average consumer. Since Conscientious consumers pay off their debts every month, this would therefore imply that they are attracted to credit cards for some other purpose not because they require credit, but because their credit cards offer some other value.

The very term ' Conscientious' implies concern for more emotive factors surrounding product choice. Datamonitor' s findings confirm that green or ethical concerns are a key part of the value they seek in their products, and this is significantly more important to this segment than it is to the average consumer.

Key reasons to purchase this research

• Access the results of Datamonitor' s Global FS Consumer Insight survey in order to profile this key emerging Conscientious segment.
• Identify why the Conscientious consumers are potentially the most profitable segment and predict their future behaviors.
• Identify strategies you can take to effectively gain share of the Conscientious 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 tough decisions
  • Conscientious consumers are a valuable target for providers

THE FUTURE DECODED

• Trend: Lower numbers of Conscientious consumers have emerged than expected
• Insight: Financial pressures do not dictate Conscientious behavior
  • Conscientious consumers are found in the fastest growing emerging markets

• Insight: Demographic and lifestage findings have had some bearing on the emergence of Conscientious behavior
  • The emergence of Conscientious behavior has been more prevalent amongst younger Accumulators
  • Employment status has also influenced the emergence of more conscientious behaviour
  • Australia contains significantly more recently unemployed Conscientious consumers than elsewhere
  • Demographic and lifestage influence should not be overstated

• Trend: Conscientious consumers have a greater appetite for FS products than the average consumer
  • (Untitled sub-section)

• Insight: Though seemingly debt-averse, Conscientious consumers have more credit cards than the average consumer
  • Conscientious consumers favor pre-paid cards more than most
  • Conscientious consumers are predictably attracted to savings and insurance products

• Insight: Conscientious consumers are financially intelligent
  • Conscientious consumers apply financial intelligence to their product choices, and are keen to shop around
  • Conscientious consumers are also price-driven
  • ‘Conscientious' does not mean ‘risk-averse'
  • Conscientious consumers in all countries are financially aware

• Insight: Conscientious consumers still have higher than average product holdings with their primary bank and represent a key cross-selling opportunity
  • (Untitled sub-section)
  • There is still an opportunity for non-primary bank providers to capture share of the Conscientious wallet

• Insight: Conscientious consumers are more trusting than the average consumer
  • Conscientious consumers have had less negative experiences
  • Conscientious consumers in different countries feel different about governmental and bank responses to the crisis

• Insight: Conscientious consumers are receptive to financial advice through a wide variety of sources
  • Conscientious consumers can afford professional advice but still shop around for the best deals
  • The Conscientious segment are particularly drawn to products with green or ethical credentials
  • Conscientious consumers in all countries like a wide variety of sources of advice available to them, but cross-country preferences differ

• Trend: Conscientious consumers are optimistic about the future
  • Conscientious consumers have had a better than average experience over the last 12 months

• Insight: Conscientious consumers' future actions are aligned with their positivity
  • Conscientious consumers intend to pay more into their savings but cut back on insurance premiums
  • Conscientious consumers also plan to maintain their quality of life
  • Conscientious consumers in all countries are disinclined to spend more money in the future but attitudes towards savings for the short-term and investing for the long-term vary

ACTION POINTS

• Action: Emerging markets can provide valuable lessons for FS providers
• Action: Target Conscientious consumers with innovative regular savings products
  • Financial stability is of biggest importance to the Conscientious segment
  • Do not offer them high cost / low risk products

• Action: Datamonitor' s Megatrend Framework can help identify strategies for targeting this segment
  • Target Conscientious consumers through the Comfort Megatrend
  • Conscientious consumers desire elements of the Connectivity Megatrend in their financial needs
  • Capture Conscientious consumers through highlighting the Convenience of the offering

APPENDIX

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

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

TABLES

• Table: Conscientious and Non Conscientious consumers segmented by country
• Table: Degree to which household financial situation has worsened over the last 12 months versus percentage of Conscientious consumers, segmented by country
• Table: Conscientious consumers segmented by age
• Table: Conscientious consumers segmented by age and country
• Table: Conscientious consumers segmented by employment status
• Table: Conscientious consumers segmented by employment status and country
• Table: Average product holding amongst Conscientious and global consumers
• Table: Product holdings amongst Conscientious and global consumers (those with two or more)
• Table: Instant access savings holdings amongst Conscientious consumers, segmented by country
• Table: Notice savings account holdings amongst Conscientious consumers, segmented by country
• Table: Life insurance holdings amongst Conscientious consumers, segmented by country
• Table: Credit card holdings amongst Conscientious consumers, segmented by country
• Table: Indicators of financial intelligence amongst Conscientious and global consumers
• Table: Indicators of financial intelligence amongst Conscientious consumers, segmented by country
• Table: Non current account primary bank product holdings amongst Conscientious and global consumers
• Table: Non current account primary bank product holdings amongst Conscientious consumers, segmented by country
• Table: Products held with primary bank amongst Conscientious and global consumers
• Table: Indicators of trust amongst Conscientious and global consumers
• Table: Opinion of bank handling of the crisis and governmental intervention amongst Conscientious consumers, segmented by country
• Table: Steps before making financial decisions amongst Conscientious and global consumers
• Table: Steps before making financial decisions amongst Conscientious consumers, segmented by country
• Table: Expectations for the future amongst Conscientious and global consumers
• Table: Actions over the next six months among Conscientious and global consumers
• Table: Actions over the next six months among Conscientious consumers, segmented by country

FIGURES

• Figure: Lower numbers of Conscientious consumers have emerged than expected
• Figure: Financial pressures do not dictate Conscientious behavior
• Figure: The emergence of Conscientious behavior has been more prevalent amongst younger Accumulators
• Figure: Australia has a surprising number of older Conscientious consumers
• Figure: Employment status has also influenced the emergence of more conscientious behaviour
• Figure: Australia contains significantly more Conscientious consumers who are recently unemployed than elsewhere
• Figure: Conscientious consumers have a greater appetite for FS products than the average consumer
• Figure: Conscientious consumers are almost doubly likely to have two or more of each product than the average global consumer
• Figure: Conscientious consumers in the UK are particularly receptive to instant access savings accounts
• Figure: Notice savings accounts in India are more popular than elsewhere
• Figure: Life insurance is relatively unpopular in Australia
• Figure: Credit cards are most populat amongst Conscientious consumers in Japan, Singapore and the US
• Figure: Conscientious consumers are financially intelligent
• Figure: Conscientious consumers in the US are more Conscientious than others
• Figure: Conscientious consumers in Australia, Japan and Singapore are actually slightly less financially intelligent than average
• Figure: Brazilian and Indian Conscientious consumers are at odds in terms of financial awareness
• Figure: Conscientious consumers have higher than average product holdings with their primary bank
• Figure: Conscientious consumers in France are by far the most loyal to their primary bank
• Figure: There is still an opportunity for non-primary bank providers to capture share of the Conscientious wallet
• Figure: Conscientious consumers are more trusting than the average consumer
• Figure: Conscientious consumers in the UK and US feel very differently about the way the crisis has been handled by their banks
• Figure: Conscientious consumers can afford professional advice but still shop around for the best deals
• Figure: Conscientious consumers in the US are comfortable making their decisions through online research rather than using other sources of advice
• Figure: Australians are not keen to take advice from family and friends
• Figure: Conscientious consumers in Brazil are most confident in seeking advice from their primary bank
• Figure: Conscientious consumers' are optimistic about the future
• Figure: Conscientious consumers intend to pay more into their savings but cut back on insurance premiums
• Figure: Conscientious consumers in the UK are still disinclined to save for either the short- or long-term
• Figure: SmartyPig has created an innovative savings platform
• Figure: ING Direct has employed innovate use of Web 2.0 technology
• Figure: SmartyPig has also harnessed Web 2.0 and social networking to appeal through Connectivity
• Figure: Virgin' s Climate Change ISA is a prime example of ethical and green credentials

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