Hitting The Mark
By Matt Boot, Chief Analyst at database marketing specialist KDB
To say the last two years have not been a good period for the financial services industry would be a massive understatement — but to add that there are good opportunities coming out of the recession is also not overstating things.
Financial firms of all kinds are facing a continuing struggle in the current economic environment when it comes to selling consumers on their products and services. While the economy appears to be slowly climbing from the depths of recession, one lasting effect promises to be that consumers may still be gun-shy...
...when it comes to their money — particularly where investment vehicles are concerned.
Banks, insurance companies, credit card providers, investment firms, financial advisers and virtually every other type of company operating in the sector has to re-think its approach to marketing and communicating with its customers. Not only do they have to win over mistrustful consumers, but they are dealing with a market in which money is tight for many households and they have little flexibility.
The good news for those in the industry trying to market investment products and services is that our latest survey shows that an overwhelming majority of UK consumers consider themselves to be active investors — and nearly two-thirds of those are increasing their investment this year.
The research also shows, however, that overall a large majority of UK financial firms are doing an insufficient job when it comes to their print communications and marketing — 70% of all respondents found that the majority of direct mail they received from financial firms is irrelevant to them. It is worth noting, though, that 13% said a substantial proportion of the direct mail they receive from these companies is of interest to them, indicating that some... continued on page two >