Life-stage marketing, often used to sell menu-based protection products, is fast becoming the most ...
Life-stage marketing, often used to sell menu-based protection products, is fast becoming the most successful marketing initiative by financial service providers, according to independent market analyst Datamonitor.
In the report, Lifestage Marketing, Datamonitor said designing plans relevant to clients' current circumstances helps differentiate products sold by different providers, builds long-term relationships with clients and results in better customer service.
Nicola Kubiak, Datamonitor's financial services analyst and author of the report, said: 'This report draws on MORI Financial Services data which highlights significant changes between consumers depending on their lifestage. Life-stage marketing can be effective in helping to bring differentiation to products and build relationships that reduce reliance on individual products and lower attrition.'
Menu products, such as Scottish Equitable's Protect range, have been marketed using similar principles. Laura Shanks, spokes-person for Scottish Equitable, said life-stage marketing helps providers to target prospective clients more efficiently.
'Menu products are ideal for marketing different life stages. Advisers can help clients pinpoint their needs so they buy the cover they require. It is easier to convince people to buy a product if it relates to their current needs,' she said.
When Scottish Provident produced a marketing pack aimed at helping IFAs sell protection, it also found relating cover to life stages was successful.
Nick Kirwan, head of product development at Scottish Provident, said: 'This type of strategy has proved popular among advisers. People want information relevant to their own life stage that they can relate to.'
