Targeting Emerging Consumer Segments The Conscientious Consumer

Published by: Datamonitor

Published: Jan. 8, 2010 - 77 Pages

Table of Contents

OVERVIEW

Catalyst

Summary

Methodology

Table of Contents

Table of figures

Table of tables

Introduction

Customer segmentation is vital for an effective marketing strategy

The recessionary environment is forcing providers to make tough decisions

Identifying fads as opposed to long term trends is important

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

Higher number of Conscientious consumers in China are due to reinforced confidence about the state of their economy relative to others and builds on cultural foundation of prudence

Russia has disproportionately few Conscientious consumers compared to other emerging economies

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

Australia has a surprising number of older Conscientious consumers

Japan has no young or old Conscientious consumers

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

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

Notice savings accounts in India are more popular than elsewhere

Life insurance is relatively unpopular in Australia

Credit cards are most popular amongst Conscientious consumers in Japan, Singapore and the US

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

Conscientious consumers are likely to be regular savers

Conscientious consumers have more pensions and life insurance as well as travel, home and health (etc) insurance

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

Conscientious consumers in the US are more Conscientious than others

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

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

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

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

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

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

Conscientious consumers in China and Singapore are positive about governmental control and confident that their banks are protecting their money

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

For new players entering the industry, proof of financial stability is vital

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

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

Australian Conscientious consumers are comfortable with their financial decisions despite not being overly receptive to advice

Chinese CC's are receptive to all forms of advice

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

Australian and German Conscientious consumers would rather focus on long-term rather than short-term savings

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

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

Harness new connective technology

Experiment more boldly with Web 2.0 technology

Ethical consumerism is a key component of the Connectivity Megatrend

Capture Conscientious consumers through highlighting the Convenience of the offering

APPENDIX

Data tables

Methodology

Definitions

The Datamonitor Financial Services Consumer Insight Megatrend Framework

Authenticity

Comfort

Connectivity

Convenience

Individualism

Wellbeing

Demographic Complexity

Financial Intelligence Complexity

Lifestage Complexity

Wealth Complexity

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List 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

List 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

Abstract

• 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

• 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.

About MarketResearch.com
MarketResearch.com is an online aggregator selling over 300,000 market research reports, company profiles and country profiles from over 700 research firms. Our reports will provide you with the critical business and competitive intelligence you need for strategic planning and marketing research. Coverage includes the US, UK, Europe, Asia and global markets.