Posts Tagged ‘Customers

08
Sep
08

Segmenting travelers – Here’s a method to do it

There’s always a lot of thinking & data-driven insights needed on how to approach segmentation of customers. At Cequity, we have always believed that we have to connect transactional data with behavioral observations that can help us identify customer types and segments more precisely. Here’s a method adopted for the travel & hospitality business. Read on:

This questionnaire, developed by travel researcher Stanley Plog, divides travelers into six personality types. At one end of the spectrum are “venturers” who like to strike out on their own to remote places. At the other are “authentics” who prefer Disney World as an adventure.

Two people can take the exact same trip and come away with completely different impressions. Many travel experts offer a short quiz to help define your travel personality. If you love going places, you may be an adventurous traveler. This means generally you love going places you’ve never been, keep your passport current–just in case–or laugh at the very idea of a travel guide book. You are spontaneous and curious and like learning about the world by experiencing it. You look for last minute deals that provide you a chance to explore new places.

Structured travelers like to have a plan in place and look for low stress. You even have an alternative plan if something should go wrong. You like to look at your hotel room by online video so you know exactly what to expect. Laid back travelers handle stress without much anxiety. You choose a relaxing vacation one time and an active one another. You often wait until you arrive at your destination to decide what you will do while you are there.

To find out your travel personality try taking a quiz at a new Web site, www.Besttripchoices.com

17
Aug
08

Are banks ready to shift gears to attract and retain Gen X and Gen Y?

According to a survey by Maritz Research, Younger Generation of Customers are Less Loyal to Banks. 

At Cequity, we agree this is a challenge for banks and we do recommend banks must change the way they service this generation. They need a whole host of new services which makes it convenient for the young generation to bank with them. Also, there is a need to understand their financial needs and configure products that can fit into their life. Take a look at what the research revealed:

“For the most part, the current customer experience model at banks caters to the Silent Generation and Boomers, who more frequently bank in-person at branches. But, younger generation customers are much more mobile and rely more heavily on online interactions,” says Thad Peterson, division vice president, sector strategy and solutions for Maritz’ financial services sector.

  • 37 percent of Gen Y and 36 percent of Gen X believe they would get better customer service at a different bank, compared with only 24 percent of Boomer and 16 percent of Silent Generation respondents.
  • 22 percent of Gen Y and 21 percent of Gen X reported being upset in the past year about high fees, whereas only 14 percent of Boomer and six percent of the Silent Generation respondents reported the same.
  • 18 percent of Gen Y and 17 percent of Gen X reported being upset about a lack of ATM locations, compared with only 11 percent of Boomer and three percent of Silent Generation respondents.

Washington Mutual is one institution that successfully caters to the needs of younger customers. WaMu no longer requires a signature to open a checking account. The bank simply uses the first signed check as the authorization signature — incenting new customers to do business with the bank by simplifying the process and eliminating a trip to the bank. It appeals to the Gen X and Y customer desire to just “get it done,”

Read more

02
Aug
08

Differentiating a bank’s services

Ron Shevlin has a very good post on the challenges banks face on differentiating their services. At Cequity, we do believe that “customization of services” is really the future of bank branding. Banks & Financial services business need to understand customer transactional behaviour a lot more and tailor-make their services to customers according to their needs at that time. Differentiation by understanding “the pattern behind transactions” is going to  become a huge competitive advantage for banks & financial services businesses in the future – which is starting now!

Take a look at what Ron has to say:

Financial services branding is a hot topic these days, from releases of (methodologically suspect) brand rankings, to a number of blog posts. Stealing Share published a study recently, and had this to say about bank brands:

“The major banks remain undifferentiated and deliver little to no brand meaning. What banks need is a new brand promise, one that is a reflection of who the target audience is.”

In the future, banks will go down one of the following three branding paths:

1) Specialist. The brand message for firms going down this path will be “We do [fill-in-the-blank] — and only [fill-in-the-blank].” Fill-in-the-bank might be a specific product or service, or perhaps “serve” a specific segment of the market.

Rationale: The financial supermarket concept has never worked, and never will. Consumers have never wanted a one-stop shop, and many never will. Self-directed consumers who know what they want, are willing to put in the effort to manage their finances — and multiple financial providers — will place a value on firms that specialize in narrow product areas, services, or their particular segment.

2) Trusted, objective advisor. The brand message for banks on this path is: “We do right’s for you — not us.” Think Miracle On 34th Street with Santa sending customers to other stores because it’s right for them. Sound crazy? Sure it does. But this is true differentiation — and will plenty of traffic in the door and on the site. It’s working for Progressive Insurance.

Rationale: There’s a segment of consumers — they tend to be younger, less affluent, less highly educated — that need advice and guidance on how to manage their financial lives and how to make smart decisions. Trusted advice is easy to get when you have $10 million in the bank (which is funny to say, because the people who have $10 million usually don’t keep it with a bank). Trusted, objective advice — regarding both sides of the balance sheet (assets and liabilities) — is an unment need among many consumers.

3) Operational excellence. The brand tagline for firms on this track is “We don’t screw up — ever. And if we do, we’ll fix it so fast you won’t even know it happened.” (I’m sure the copywriters will come up with more appropriate language).

Rationale: Relatively affluent, highly educated consumers value this more than anything else. When my bank screws up a $50 charge, it can only make me wonder: “If you can’t keep track of $50, how can you expect me to invest $500k with you?




At Cequity, we believe customer intelligence will be the biggest competitive advantage enterprises will have in the next decade or two. Successful enterprises of tomorrow will be the ones who can organize and leverage this information at speed to optimize their marketing performance, increase accountability, improve profit and deliver growth. Cequity insights will bring to you trends and insights in this area and it’s our way of sharing best practices so as to help you accelerate this culture and thinking in your organization.
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