Those financial services providers that recognise the different life stages of their customers in th...
Those financial services providers that recognise the different life stages of their customers in their marketing campaigns will be most successful, according to new research from market analysts Datamonitor.
By identifying the different life stages customers pass and targeting their marketing accordingly, the report found providers can help build long term relationships and increase customer retention.
This all comes down to personalised marketing. Personalised marketing makes the customer feel valued and encourages loyalty. This is something certain protection providers have been doing for some time, particularly those with flexible and menu-based offerings.
The whole concept of menu-based protection is based around the fact that clients can increase or decrease their sums assured and add or drop benefits as their requirements change.
So the product sold to the young, single first-time buyer who wants to protect their mortgage can move with them when their requirements change ' whether they get married, have children or get divorced.
One size does not fit all and protection that meets the needs of consumers ' whatever life holds in store ' will always be appealing. Before long the rigid inflexible term contracts the public has become accustomed to will no longer have a place on the market. After all, it is unreasonable to assume that a product taken out when a client buys their first home will still be appropriate 25 years later.
But it is not just financial services providers that can benefit from this approach ' IFAs should also consider life stages in their marketing strategy.
The whole financial advice industry is moving towards the provision of a holistic service.
IFAs who stay in touch with their clients will be better placed to take advantage of clients' changing circumstances. A letter when they remortgage, move home, have their first child, or retire outlining their new protection needs will go along way in securing yourself more business.
However, as part of this shift towards holistic financial planning IFAs must also consider changing lifestyles.
Society is changing and the assumption that clients get married, buy a house, have kids and retire is an out-dated one.
More individuals are deciding to live life alone and more couples are opting not to have children. Then there is an increasing number of same sex couples. Working patterns are also changing with people being self-employed or working on a contract. The majority of us work in desk-based job and the increased pace of life means we are doing less and less exercise.
These changes bring about a whole new raft of risks and consequently protection requirements. So it is those IFAs that can embrace and respond to these changes that will reap the biggest rewards ' more business, from more loyal and contented clients.
Rachel Williams, editor
