This lesson explores the behaviour of financial services consumers, both individuals and businesses, providing the foundation for effective segmentation and targeting.

2.1 The Financial Services Consumer
Understanding the consumer is central to successful marketing. The financial services consumer can be an individual (B2C) or a business (B2B), and their purchasing behaviour is influenced by a complex set of factors :

  • Psychological Factors: Motivation, perception, learning, beliefs, and attitudes significantly influence financial decisions.

  • Personal Factors: Age, life stage, occupation, economic situation, and lifestyle.

  • Social Factors: Reference groups, family, and social class.

2.2 The Buying Process for Financial Services
The decision-making process for financial services is often longer and more complex than for everyday consumer goods . A typical model includes:

  1. Problem/Need Recognition: Identifying a financial need (e.g., saving for retirement, protecting a home).

  2. Information Search: Gathering information from various sources (personal, commercial, public).

  3. Evaluation of Alternatives: Comparing different products and providers based on a range of criteria.

  4. Purchase Decision: Selecting a product and provider. Trust and advice are often critical factors .

  5. Post-Purchase Behaviour: Evaluating the purchase and deciding whether to continue the relationship. This is where service quality and satisfaction are key.

2.3 Consumer Insights and Advanced Customer Models
To truly understand their customers, banks use data-driven insights. This involves analysing transaction data, demographics, and channel usage to build detailed customer profiles . Advanced models allow banks to understand customer behaviour at a granular level and anticipate needs .

2.4 The Evolution of Consumer Expectations
In a digital age, consumers expect 24/7 access, personalised interactions, seamless omnichannel experiences, and transparency . Their experience with leading digital-first companies sets the benchmark for their expectations of their bank.

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