Spring 2006 Research Issues

New Research Highlights
Key Financial Trends & Competitive Update
Market Segmentation
Delivery Channels
Online Banking
Checking Accounts
Deposit and Investment Services
Loan and Mortgage Products
Small Business

• Customer advocacy:  what factors will motivate a consumer to refer business to you?

• Life-stage marketing:  how are consumers financing life events?

• Attitudinal segmentation:  what’s the appropriate value-proposition for these key attitudinal segments: loyalty driven, price driven, technology driven?

• Identity theft:  Can we generate non-interest income from premium identity theft protection?

• Media behavior:  What media is best at reaching consumers and impacting their buying decisions?

• Conjoint analysis:  what’s the utility value of these attributes when a consumer selects a checking account: branch network, free checking, free bill pay, extended hours of operation?

Prior to examining consumer research results, RFG sets the stage by reviewing key economic statistics affecting the marketing of financial services.  Competitive information from a variety of sources concerning the most recent marketing strategies and tactics being employed nationally will be examined.  Following this introduction, consumer responses to questions in the following areas will be explored.

• What’s the current demand for deposit, loan and investment products among RFG’s Consumer Segments? 

• Which segments are your best targets for each product and how can the expanded 11-Cell Consumer Segment model improve marketing efficiency?

• Attitudinal Segmentation:  what’s the appropriate value-proposition for these key attitudinal segments: loyalty driven, price driven, technology driven?

• How are consumer channel preferences and usage frequency changing? 

• Customer advocacy:  what factors will motivate a consumer to refer business to you?

• Do consumers want a one-stop-shop for financial services?  Why do they use more than one?

• What percent of consumers pay a fee for cashing a check?

• What incentives or rewards would most encourage consumers to increase their debit card usage?

• What’s the market opportunity for bank-at-work programs?

• Media behavior:  What media is best at reaching consumers and impacting their buying decisions?

• What online products and services do consumers use, and what are they most likely use in the next year?

• What percent of online bankers use specialized Websites to comparison shop product rates or features?

• What’s the online banker’s preferred communication method for questions during an online banking session?

• What impact has “phishing” and identity theft had on consumer online financial activities?

• Could contacting a customer after they close an account save the relationship?

• Identity theft:  Can we generate non-interest income from premium identity theft protection?

• How are consumers changing behavior to avoid NSF and other checking fees?

• Conjoint analysis:  what’s the utility value of branch network, extended office hours and free online bill pay when a consumer selects a checking account.
   

• What’s the demand for Internet only deposit accounts (high rate, low minimum balance accounts that are available only through the Internet, by mail or by phone)?  Has demand been increasing?

• What increase in interest would motivate consumers to move their maturing CD to another institution? 

• Is their demand for laddered CDs, and what is most important: liquidity, yield or minimizing risk? 

• Life-stage marketing:  how are consumers financing life events?  What life events will consumers be facing in the near future and what are they doing (financially) to prepare for those events? 

• How many consumers are currently receiving income from an IRA account?  What plans do consumers have for beginning voluntary or mandatory withdrawals from their retirement accounts?  Where will consumers deposit the funds they plan to roll over from their 401Ks to IRAs?

• Has demand for Health Savings Accounts (HSAs) increased?

• In an increasing interest rate environment, what type of equity lending product do consumers prefer most? 

• What’s the demand for new mortgage loans vs. refinancing?  What type of mortgages do consumers currently have?  What’s the current value of their homes and how much equity have they built up?

• Aside from their residences, what other types of real estate do consumers own?

• How long have consumers had their equity product and how long do they expect to keep it open?  What are their intentions when they have finished paying off the balance on their HELOC? 

• What are the most important factors to small businesses see in selecting/retaining a financial institution?

• What type of financial service products do small businesses anticipate opening in the next 12 months? 

• Does the preferred method of conducting financial transactions differ by company size or type of business? 

• What incremental value does a mixed banking relationship have for financial service providers?