Reaching Profitable Younger Prospects with Precise Segmentation and Targeting
Given the continuing competition to attract deposits, many regional banks are assessing the value of their customer base. Regional banks often operate in markets where the prevailing customer profile is older and less affluent than the national average. Although this customer segment represents a stable source of revenue and these customers tend to keep a higher share of their assets in deposit products, their relationships do not necessarily generate the greatest profits or promise the highest lifetime value.
Thus, it is not surprising that regional banks are seeking to acquire younger, mass affluent households. In order to do this, banks must take a holistic approach to the initiative, including understanding and identifying these consumers and then reaching out to them with appropriate product, pricing, and service offerings. In addition, firms must create marketing messages that speak to the specific needs of the targeted households and deliver them via their preferred media channels.