Targeting Emerging Consumer Segments - The Cautious Consumer

Published by: Datamonitor

Published: Dec. 17, 2009

Table of Contents

Overview

Catalyst

Summary

Methodology

Introduction

Customer segmentation is vital for an effective marketing strategy

The Future Decoded

Trend: Lower numbers of Conscientious consumers have emerged than expected

Insight: Financial pressures do not dictate Conscientious behavior

Insight: Demographic and lifestage findings have had some bearing on the emergence of Conscientious behavior

Trend: Conscientious consumers have a greater appetite for FS products than the average consumer

Insight: Though seemingly debt-averse, Conscientious consumers have more credit cards than the average consumer

Insight: Conscientious consumers are financially intelligent

Insight: Conscientious consumers still have higher than average product holdings with their primary bank and represent a key cross-selling opportunity

Insight: Conscientious consumers are more trusting than the average consumer

Insight: Conscientious consumers are receptive to financial advice through a wide variety of sources

Trend: Conscientious consumers are optimistic about the future

Insight: Conscientious consumers’ future actions are aligned with their positivity

Action Points

Action: Emerging markets can provide valuable lessons for FS providers

Action: Target Conscientious consumers with innovative regular savings products

Action: Datamonitor’s Megatrend Framework can help identify strategies for targeting this segment

APPENDIX

Data tables

Methodology

Definitions

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

TABLE OF FIGURES

Figure 1: Lower numbers of Conscientious consumers have emerged than expected

Figure 2: Financial pressures do not dictate Conscientious behavior

Figure 3: The emergence of Conscientious behavior has been more prevalent amongst younger Accumulators

Figure 4: Australia has a surprising number of older Conscientious consumers

Figure 5: Employment status has also influenced the emergence of more conscientious behaviour

Figure 6: Australia contains significantly more Conscientious consumers who are recently unemployed than elsewhere

Figure 7: Conscientious consumers have a greater appetite for FS products than the average consumer

Figure 8: Conscientious consumers are almost doubly likely to have two or more of each product than the average global consumer

Figure 9: Conscientious consumers in the UK are particularly receptive to instant access savings accounts

Figure 10: Notice savings accounts in India are more popular than elsewhere

Figure 11: Life insurance is relatively unpopular in Australia

Figure 12: Credit cards are most populat amongst Conscientious consumers in Japan, Singapore and the US

Figure 13: Conscientious consumers are financially intelligent

Figure 14: Conscientious consumers in the US are more Conscientious than others

Figure 15: Conscientious consumers in Australia, Japan and Singapore are actually slightly less financially intelligent than average

Figure 16: Brazilian and Indian Conscientious consumers are at odds in terms of financial awareness

Figure 17: Conscientious consumers have higher than average product holdings with their primary bank

Figure 18: Conscientious consumers in France are by far the most loyal to their primary bank

Figure 19: There is still an opportunity for non-primary bank providers to capture share of the Conscientious wallet

Figure 20: Conscientious consumers are more trusting than the average consumer

Figure 21: Conscientious consumers in the UK and US feel very differently about the way the crisis has been handled by their banks

Figure 22: Conscientious consumers can afford professional advice but still shop around for the best deals

Figure 23: Conscientious consumers in the US are comfortable making their decisions through online research rather than using other sources of advice

Figure 24: Australians are not keen to take advice from family and friends

Figure 25: Conscientious consumers in Brazil are most confident in seeking advice from their primary bank

Figure 26: Conscientious consumers’ are optimistic about the future

Figure 27: Conscientious consumers intend to pay more into their savings but cut back on insurance premiums

Figure 28: Conscientious consumers in the UK are still disinclined to save for either the short- or long-term

Figure 29: SmartyPig has created an innovative savings platform

Figure 30: ING Direct has employed innovate use of Web 2.0 technology

Figure 31: SmartyPig has also harnessed Web 2.0 and social networking to appeal through Connectivity

Figure 32: Virgin’s Climate Change ISA is a prime example of ethical and green credentials

TABLE OF TABLES

Table 1: Conscientious and Non Conscientious consumers segmented by country

Table 2: Degree to which household financial situation has worsened over the last 12 months versus percentage of Conscientious consumers, segmented by country

Table 3: Conscientious consumers segmented by age

Table 4: Conscientious consumers segmented by age and country

Table 5: Conscientious consumers segmented by employment status

Table 6: Conscientious consumers segmented by employment status and country

Table 7: Average product holding amongst Conscientious and global consumers

Table 8: Product holdings amongst Conscientious and global consumers (those with two or more)

Table 9: Instant access savings holdings amongst Conscientious consumers, segmented by country

Table 10: Notice savings account holdings amongst Conscientious consumers, segmented by country

Table 11: Life insurance holdings amongst Conscientious consumers, segmented by country

Table 12: Credit card holdings amongst Conscientious consumers, segmented by country

Table 13: Indicators of financial intelligence amongst Conscientious and global consumers

Table 14: Indicators of financial intelligence amongst Conscientious consumers, segmented by country

Table 15: Non current account primary bank product holdings amongst Conscientious and global consumers

Table 16: Non current account primary bank product holdings amongst Conscientious consumers, segmented by country

Table 17: Products held with primary bank amongst Conscientious and global consumers

Table 18: Indicators of trust amongst Conscientious and global consumers

Table 19: Opinion of bank handling of the crisis and governmental intervention amongst Conscientious consumers, segmented by country

Table 20: Steps before making financial decisions amongst Conscientious and global consumers

Table 21: Steps before making financial decisions amongst Conscientious consumers, segmented by country

Table 22: Expectations for the future amongst Conscientious and global consumers

Table 23: Actions over the next six months among Conscientious and global consumers

Table 24: Actions over the next six months among Conscientious consumers, segmented by country

Abstract

• Using data from our global FSCI survey this report profiles the attitudes and behaviors of the emerging Cautious 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 Cautious wallet.

• Access the results of Datamonitor's Global FS Consumer Insight survey in order to profile this key emerging Cautious segment.
• Identify what drives Cautious consumer action and predict their future behaviors.
• Identify the opportunities Cautious consumers represent and advise strategies you can take to effectively gain share of the Cautious wallet.

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