On its surface, the principle of marketing segmentation is simple: divide your potential audience into smaller groups so you can deliver a tailored message just to that group. Segmentation opens up a world of benefits for your institution and for your target audience. By delivering relevant messages to consumers, you build trust and garner an improved response — raising the effectiveness of each dollar spent.
If it’s so simple, what makes segmentation such a challenge among community financial institutions? Especially in the age of technology, often the simplest things belie the complex infrastructure, analytics, and dependencies required for success.
The 3 Hoops you Must Jump Through
Community financial institutions face three distinct challenges on the road to effective marketing segmentation:
Acquiring the right data
First, you need access to the data, meaning you either need to collect it yourself, purchase access, or work with a partner that has access. Realistically, the latter two options give you the greatest reach but lead to the second issue.
Developing the expertise to optimize your strategy
Not all marketers have the experience and skills necessary to manipulate the data effectively. Building your own segments can be a daunting task. While separating “past account holders” from “current account holders” is a good start, when you begin prospecting for new account holders, things get tricky, fast.
Finding time to implement and maintain the program
Even a marketer who is skilled at utilizing segmentation still needs time to build out relevant campaigns, deploy, manage, and report on performance, as well as any other responsibilities. Many institutions lack the staffing resources to really devote the necessary time to proper segmentation.
Segmentation is a game of scale, and it pays to play with a partner who can leverage resources and technology that are out of reach for most community banks and credit unions.
The 3 ‘ics’ you Should Expect from a Good Marketing Segmentation Model
When evaluating segmentation models, there are 3 key factors to examine:
- Geographics — where they live
- Demographics — who they are (i.e. gender, income, age, etc.)
- Psychographics — what behaviors, attitudes, and social value groups they exhibit and what motivates them to respond
Ideally, you will build on insights you know about the consumer characteristics that are the best fit for your institution’s goals, budget, and brand.
Once you have access to the right data, implementation is your next step. Consider partners who can help you establish a fully cross-channel automated marketing strategy to keep up a conscious conversation with your targeted consumers.
Real World Marketing Segmentation Examples
Community financial institutions bear a heavy operational burden with constrained resources and staff; at Kasasa we’re always looking for ways to lighten your load. In our segmentation model, we’ve analyzed and identified groups of consumers who have a high likelihood of choosing a community financial institution. Each segment or “cohort” is designed to let you quickly choose categories that fit your goals — and select the right mix of marketing channels.
Here are just a handful (there are a dozen total) of the cohorts that Kasasa clients can choose from:
- Super Suburbans
- Expanded Accumulating Families
- Middle America Families
- Country Comfortable Couples
- Single Strivers
Get Your Own Market Insights Report
If you'd like to see the 'ics' of your community, then go ahead and request your own Market Insights Report. It's completely free and personalized for your communities.