While our work typically involves the development of comprehensive growth strategies that stem from market research, we know that some institutions simply need specific pieces of data and information to make informed decisions. Whether offered as a part of a comprehensive strategy or as part of a more limited scope, Market Insights provides a wide variety of market data, research, and customer information to support important strategic decisions.
Demographic data provides important insights about trends and opportunities that may exist in a market. An understanding of population characteristics (such as age, income, education, etc.) can help guide important decisions relative to delivery networks and marketing. Our demographic studies offer a complete demographic profile of a market including market-specific financial product usage and demand information. Collectively, this data reveals information about the market segments that comprise an overall population, and offers information that begins to reveal specific market opportunities.
Customer and Market Segmentation
Segmentation, the process of organizing a population into smaller groups based on shared characteristics, is becomming increasingly important for financial institutions looking for more effective targeted marketing. While groups of people can be segmented in a variety of ways (including demographics), our segmentation process classifies people based on shared psychographic characteristics and consumer behaviors, specifically those that indicate financial product and service demands, usage and preferences. This type of data and analysis offers a deeper level of information than demographics alone, and allows financial institutions to have a complete and accurate understanding of their customer bases and markets served.
Accurate growth projections are critical in managing growth expectations, setting goals, and pursing available growth opportunities. Market Insights uses a series of proprietary mathematical models to estimate deposit, loan, and investment potential that is available in a given market. These projections can support important decisions relative to the viability of a new branch or site, the potential growth at a current site, and/or the potential consolidation or closure of branch locations.
Market Insights has developed a proprietary scoring method that allows us to rank markets and branch sites based on overall attractiveness and viability of those markets or sites. These scores allow for the relative ranking of current and/or proposed branch locations. Perhaps most importantly, point scores limit the influence of emotional attachment on the decision making process, which allows for informed rather than impulsive decisions.
Our Market Scan process involves scanning a broad geographic area (i.e. county, region, state, etc.) for high instances of attractive market characteristics (i.e. certain demographic segments, growth rates, product usage rates, etc.). This process allows institutions to identify the most attractive and potentially viable market areas within a broad geography. A Market Scan is usually conducted prior to in-field targeting for new branch locations, for comparison of current markets vs. proposed markets, and to prioritize markets where expansion and/or acquisition opportunties should be considered.
Successful strategies begin with a solid understanding of your market. Contact us to discuss how our experts can help you better understand yours.