Market Segmentation: A Fundamental Key to Building Relationships
Developing and promoting profitable products has been a hurdle for banks to overcome on a consistent basis. Technology has provided boundless opportunities for the creation of products and their delivery with alternative distribution methods, including ATMs, call centers, and Internet banking. And yet, it is no secret that marketing productivity in the financial services industry has fallen to critically low levels in recent years.
Banking executives recognize the problem and are looking at market segmentation in new ways. The importance of understanding the competitive market, and how the bank stacks up against that market, will play a key role in future marketing strategies. In this Strategic Commentary entitled “Market Segmentation: A Fundamental Key to Building Relationships,” Speer & Associates, Inc. (S&A) explores the importance that market segmentation has in the new world of faceless banking.
