Marketing Forecast from Ad-ology

According to new research, debit card programs alone aren’t likely to foster customer loyalty, as nearly half of respondents who participate in a debit rewards program have never redeemed their points. As banks eliminate debit rewards programs as a result of changing legislation, new research from Mintel analyzes consumers on their debit reward behavior and attitudes. Survey respondents are segmented into three groups: heavy (redeem about once a month), medium (redeem every few to every six months) and light (redeem once a year) redeemers.

The retail banking sector has been struggling since the start of the Great Recession. These institutions are facing higher operating costs and a consumer base that is not increasing its demand for banking services, especially higher debt. In addition, the marketing paradigm has changed for banks.

As consumers adjust to the new economic reality, they must focus on the household budget and find ways to cut expenses and debt. Each ethnic group faces unique challenges when managing money and this generalization holds true for African Americans. As a result, financial services companies will be focusing their marketing efforts on African Americans this year.

The Ad-ology Marketing Forecast video briefing is designed for strategic marketers:  Ad agencies, in-house marketers, media buyers+sellers, business owners. Every month it features industry forecasts and trends from a variety of top sources, plus exclusive data from Ad-ology Research. The June 2011 Ad-ology Marketing Forecast features: Exclusive: Future New Car Buyers Financial Services Loyalty MarketingRead the Rest…

Many young adults have a limited understanding of how to manage finances as they transition into independent living settings and the task of buying insurance falls into this category. While younger consumers acknowledge the importance of property, auto and liability coverage, they are looking for more information, often online. This trend provides a new opportunity for agent networks.

For many financial institutions, pre-recession initiatives such as green marketing have taken a back seat as they have been dealing with the aftermath of the economic crisis. But, it may be time to pull out those tools again in order to help rebuild their image. According to new research from Mintel for the report, “Green Marketing in Finance, 2011,” 72% of respondents said they “feel good about working with a financial services firm that invests in companies that are looking at eco-solutions.” However, the data also shows a certain measure of cynicism, as almost half of respondents state that they believe that a company that claims to be green is just trying to promote a better image for itself. “Overcoming this cynicism is the key to a successful green marketing campaign that really stands out,” says Susan Menke, vice president and behavioral economist at Mintel.