Financial Services: Segment to Improve Personalization and Targeting
The need for marketers to personalize their communication is nothing new; 90 percent of consumers find custom content useful, so brands should strive to make every online interaction a unique and memorable one. However, according to recent research, 64 percent of brands do not use available customer data to personalize their email copy in any way and over two-thirds do not customize the products and services featured in their email campaigns.
The sheer variety of consumer data points may overwhelm some marketers, but it is critical that brands make better use of personalization opportunities moving forward. While some of these data points are obvious (a customer’s first name or birthday), brands must also consider the power of less common customer information, especially demographic data. A new report from Yesmail offers tips for marketers in the financial services industry and beyond looking to better engage with consumers and boost customer loyalty.
Every industry has unique opportunities to improve demographic segmentation based on key factors within its space. For example, the financial services industry can effectively use a particular set of demographic information for personalization and targeting process.
Even though the financial services industry has a reputation for slow adoption of new strategies, using demographic data to personalize campaigns is a relatively easy-to-implement and low-cost tactic that can dramatically improve financial services brands’ content and offerings.
Presence of Children
Some demographic information can stand alone. Consider whether or not a prospect has children. Many financial products involve long-term planning for a child’s future needs — anything from paying for college to having a sizeable slush fund for medical expenses.
Data enhancement can help businesses determine whether there are children in a consumer’s household and thus help brands identify audience segments that should be targeted with a different message. Knowing whether a subscriber has children can help a bank decide if pitching a college or savings fund is going to better resonate with its audience, or if a mortgage or loan refinance program would generate better conversion rates.
Homeownership Status and Income
In addition, demographic attributes containing financial information can be used in tandem with other data to create very targeted outreach. For example, marketers can combine homeownership status with a subscriber's level of education to craft an email subject line and content that will most effectively relate to each consumer.
Household income is another demographic attribute that can prove very beneficial for campaign personalization, particularly in the financial industry. Brands can use a combination of homeownership and household income to develop campaigns that address the needs of each of their audience segments. For instance, a renter with an annual income of over $100,000 may be looking to own a home in the near future, and may be more likely to open an email with a subject line: "Ready to own? Find out how to get started" than a renter with an annual household income of $30,000. Alternatively, a renter with an annual household income of $30,000 may be more likely to engage with content that speaks to accessing funds fast or offering information about personal loans and establishing lines of credit.
By considering their subscribers’ level of education, marketers can craft messages that are relevant to different segments of their audience. For example, a consumer with a Master’s degree in a scientific field may respond better to a more technical subject line like "Unlock your home’s equity today."
Alternatively, consumers without a strong background in finance or with lower level of education might find a more straightforward subject line to be worth a click: "Wondering about refinancing? Our team is here to help." Marketers can use this combination of demographic attributes to personalize a number of components in their campaigns — from subject line to email copy, call to action, even imagery.
There are many opportunities for demographic attributes to be used to create targeted and effective communications. Since this information does not change frequently, marketing teams can rely on these consumer attributes to create and maintain strong, highly personal relationships with tenured and new consumers alike.
With the right imagery, messaging and tone, demographic segmentation sends an immediate signal that a brand caters to each customer. In the complex and competitive e-commerce landscape, this instant connection with shoppers is an invaluable opportunity for brands to win and keep business. Demographic segmentation is truly versatile across all industries, from retail to finance to hospitality and beyond.