Financial Services, Market Segmentation



A global investment firm sought to improve the effectiveness of its marketing efforts and to implement a more strategic approach for developing new financial services offerings.



The client has two main objectives:

         Measure rate sensitivity for selected banking products by geographic market.

         Develop actionable segmentation (including database scoring) for target marketing, positioning and messaging.

o   Segmentation to be based on rate sensitivity as well as underlying motivations (attitudes, behaviors, needs, etc.) related to products of interest.



Burke conducted an online survey which included a discrete choice exercise for tradeoffs related to rate scenarios, plus motivations questions. Discrete choice models were also developed along with simulation tools for simulating competitive rate scenarios by geographic market and a segmentation was developed based on rate sensitivity and motivations.



Based on the research results, our client redesigned the fee structure associated with online trading. Database scoring allowed for targeted marking messages about rate changes and was also used to develop messages that best resonated with each target group.