What Financial Institutions Can Learn From Other Markets

In the last two posts in this series, we wrote about the need to understand consumers and how to engage those consumers using data and technology. And while thinking about how we can use data and technology to make marketing more efficient is a fun exercise (especially for those of us who do it for a living!), for others it’s a complete bore.

But there is one aspect of marketing that is important for everyone. On the other side of any marketing activity, whether it’s a piece of direct mail or a billboard, there is a human receiving your message.


We are all different…or so we are told.


Clients often tell me that consumers in their market are different than consumers in other markets. But I can tell you without hesitation that this is only partially true. Markets differ from one another, but the types of consumers who live there are similar to others in the same type of market.

Sometimes people ask me, “how can you know my market when you don’t live here?” And the truth is that you don’t have to live in a certain market to predict how consumers who live there will engage businesses. Marketers use terms like “urbanicity” or “cluster modeling” to basically say that people who live near one another will exhibit common behavior patterns…and it’s true.


It’s all in the data.


Organizations like Nielsen have been helping marketers and researchers for years. Models have been developed that identify psychographic indicators in different types of people to help us predict behavior. Then, we as marketers can use that data to create marketing strategies, like figuring out which types of media we should use to attract certain consumers.  

Because of the depth of this data, we know that people in Muscle Shoals, AL and Effingham, IL are likely to consume media in similar ways and enjoy similar activities even though the markets are very different. Same with Chicago and Atlanta and same with Bend, OR and Fargo, ND.  

In short, even though Bend, OR (where trout fishing is awesome) is very different from Fargo, ND (where snowmobiling is the bomb) are very different communities, we still have a great deal of understanding about how the people in both markets will interact with our organization and our media.  


So what do I do with this information?


The next time you think of how different your community is from everywhere else you’ve been, embrace how awesome that is because it's a testament to your unique qualities. But also take a moment to embrace the fact that data and technology can now help us be predictive about marketing choices by understanding the commonalities that exist from human to human within similar markets. After all, though we are all different, we are all still human…and humans can be very predictable.
If you have questions about the types of consumers in your market and how that can help you find the next person looking to switch financial institutions, just reach out to Kasasa. We are always eager to learn about new markets and the people in the them.

Tags: Marketing, Strategy