New Study Shows Need for Banks, Financial Services to Market Online
As we kick off the new year, we're going to take a look back at the most read Consumer Spending Forecast posts of 2009. We'll be back live next week!
Nearly one in 5 U.S consumers aged 18 to 24 cited online video as an influence on their choice of banks. More than one-third was influenced by social media such as positive and negative product reviews, blogs, and social networks according to a recent Ad-ology Research study.
The younger demographic was also the most influenced by support of a charity or cause (17%), recommendation by family and friends (15.4%), and sports sponsorship (12.6%).
Overall, online media was slightly more influential than traditional media across all demographics, with bank and financial service Web sites having the most influence. Of traditional media, direct mail and television were the most influential.
“Most financial services providers frequently ask themselves “What’s the value of a new customer over their lifetime?” said C. Lee Smith, president and CEO of Ad-ology Research. “Reaching young consumers early and getting them to establish that first account can make them customers for life. Social media is the way to reach that younger demographic and develop those lifelong relationships,” Smith said.
Other key findings:
- Across all demographics, of traditional media, newspaper, television and direct mail were nearly equally influential on bank choice
- For financial services other than banks, 21.5% of higher-income users rate quality of service higher than fees
- Online banking is most important to 25 to 34 (45.3%)and 35 to 44 year olds (39.7%)
“Media Influence on Consumer Choice: Banking and Media Influence on Consumer Choice,” conducted by Ad-ology Research, September 30, 2009. Website: www.ad-ology.com. Each report includes 24 data charts, consumer-spending estimates by market, and additional marketing insights.