The banking industry continues to face scandals and technical difficulties, from Libor fixing and PPI, to computer glitches freezing accounts.
It is therefore unsurprising that customer satisfaction in traditional financial institutions is at an all time low, adding to the ongoing opportunities for supermarkets to tempt customers with their own financial products.
Customer satisfaction – Supermarkets vs Financial sectors
Source: Brand Index (YouGov) (2013)
In order to better understand these opportunities, we identified a group of regular supermarket shoppers whom supermarkets should include in their financial services’ targeting. These heavy financial product users combine regular use of things such as credit cards, savings and holiday insurance purchase, and total 5.1m people.
Source: TGI (2012)
As you would expect, this finance target group is an attractive audience. Three quarters of them are ABC1, they have an average household income of £63,000, and 85% are homeowners. Forty two percent are regular users of online social networking services, and 37% expect a life event over the next twelve months for which they need to prepare. These include making major home improvements, birth of a child, getting married, and buying or selling a property.
Characteristics of the core financial target
Source: TGI 2012
Using our proprietary experience planning application, Community Igniter, we uncovered how supermarkets can join, facilitate and positively impacts the conversations and passions of this target group. If supermarkets do this, members of this group are likely to amplify brand messages because supermarkets have made themselves relevant to them and their personal networks.
First off, the Community Igniter data shows that members of this target group are around 10% more likely to have conversations across each of their different personal networks than the average UK adult. These include work, professional and family and neighbour networks.
When it comes to their conversations, they are much more likely to talk about subjects related to new technology, sport and science. Unsurprisingly, they are also more likely to have conversations around business, investments and holidays, especially short trips and activity holidays.
Community Igniter enables us to dig deeper into these conversations, by indentifying their individual topics. By doing this, supermarkets are able to understand what kinds of messages they should target at this group and how they can facilitate them, for example when wanting to promote travel insurance. Taking short trips as an example, this group love talking about their trips and favourite places. They are also like receiving recommendations, hearing other people’s travel stories, and planning their itineraries.
‘Short trips and city breaks’ conversation by core financial target: Top topics
Source: Community Igniter
Community Igniter tells us which media members of the financial core target use to facilitate each of their conversations. Understanding this will help supermarkets to understand which media they should use to best reach them. Websites come top, with 45% of this target using this media to inform conversations around short trips and city breaks. Next comes television, with 44%, then newspaper articles and features, with 35%. Twenty nine percent use company brochures.
When we look at where members of the finance core target shop, we see that opportunities are greatest for Waitrose, Sainsbury’s and Tesco. Proportionally, Waitrose is most likely to do well with this audience, as they are nearly twice as likely to shop there than the average adult. Morrisons and ASDA are less likely to attract them than they are all shoppers, although roughly one fifth of this audience shop at these supermarkets.
Where members of the core financial target shop
Using TGI, we also looked at which financial institutions each of the supermarkets can look to poach from. Looking at savings and insurance for example, we can see that Tesco is best positioned to poach customers from Halifax, whilst Sainsbury’s should look at poaching customers from Nationwide.
Which financial institutions each supermarket should look to poach from