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Lifestage Marketing in Financial Services - US - January 2013

SCOPE AND THEMES
What you need to know
Data sources
Consumer survey data
Comperemedia
Abbreviations and terms
Abbreviations
Terms
Companies mentioned in this report
EXECUTIVE SUMMARY
The market
Figure 1: U.S. population, by generation, 2012
Figure 2: U.S. population projections, 2020 and 2050
Debt reduction is the major concern for consumers
Figure 3: Debt reduction goals for next 2 - 3 years, October 2012
Baby Boomers are especially struggling
Figure 4: Percentage of households with heads aged 55+ with debt, by age of household head, 1992-2007
Student debt—the next bubble?
Figure 5: Total student debt balances, Q3 2008-Q3 2012
Figure 6: Average amount of student debt per household, selected years, 1989-2010
Retirement planning is a concern for everyone
Figure 7: Percentage who want to increase the proportion of income saved for retirement, October 2012
Figure 8: Worker confidence in having enough to live comfortably in retirement, 2002-12
Millennials are slower to live adult lifestyles
Figure 9: Percentage of Millennials living at least temporarily with parents
There is opportunity among the Millennials
Gen X is perhaps the most challenged
Figure 10: Change in median household net worth, by age, 2005-10
Youngest customers are most interested in learning about finances
Figure 11: Interest in events hosted by financial institution, by generation, October 2012
Opportunities exist for the insurance industry
Figure 12: Preference for an insurance agent, by generation, October 2012
Financial services companies have slipped down in Fortune 500
ISSUES IN THE MARKET
The pressure is on the Millennials
Everyone is rethinking retirement
Communication preferences are changing
INSIGHTS AND OPPORTUNITIES
Key points
Retirement concerns loom large
Figure 13: Those who cite saving for retirement as an important goal for the next 12 months, November 2012
Figure 14: Percentage of workers saving for retirement, by age, 2002 and 2012
Figure 15: Total amount in retirement savings, by age, 2012
Figure 16: Expectations as to amount needed to retire comfortably, by age, 2012
Younger investors too conservative to ensure a comfortable retirement
More Millennials moving home
Figure 17: Percentage of Millennials living at least temporarily with parents, 2012
The Millennial segment is large—and some are affluent
Millennials are turning to entrepreneurship
Millennials are using alternative financial products
Gen X is perhaps the most challenged
Figure 18: Change in median household net worth, by age, 2005-10
Youngest customers are most interested in learning about finances
Figure 19: Interest in events hosted by financial institution, by generation, October 2012
Many young males would prefer to work with insurance agents
Figure 20: Preference for receiving overall financial advice from an insurance agent, by generation, October 2012
Retirement postponed for Boomers
Figure 21: Number of people aged 65+ who remain in the workforce, in thousands, January 2002-January 2012
Different channels for different generations
Figure 22: Banking channel preferences among consumers aged 18-34, 2008, 2010 and 2012
Figure 23: Banking channel preferences among consumers aged 35-54, 2008, 2010 and 2012
Figure 24: Banking channel preferences among consumers aged 55+, 2008, 2010 and 2012
TREND APPLICATIONS
Trend: Attention Economy
Industry application
Trend: Influentials
Industry application
2015 Trend: Brand Intervention
Industry application
MARKET SIZE
Key points
More Millennials than Baby Boomers
Figure 25: Population numbers, by generation, 2011
Oldest segment projected to explode in size
Figure 26: U.S. population estimates, by age, 2020-50
MARKET DRIVERS
Key points
People are getting married later
Figure 27: Median age of marriage in U.S., 1980-2011
Unemployment is still a factor
Figure 28: U-3 unemployment rate, by age, October 2011-October 2012
Education loan debt
Figure 29: Total student debt balances, Q3 2008-Q3 2012
Figure 30: Average amount of student debt per household, selected years, 1989-2010
Figure 31: Rate of delinquency of student loans, Q3 2008-Q3 2012
Figure 32: Student debt as percentage of household debt, Q3 2008-Q3 2012
Figure 33: Percentage of households with outstanding student loan debt, by age of head of household, selected years 1998-2010
Figure 34: Ratio of student loan debt to income, by age of head of household, selected years, 1998-2012
Non-educational debt
Figure 35: Percentage of households with heads aged 55+ with debt, by age of HH head, 1992-2007
Figure 36: Average total debt for families with debt with household head aged 55+, by age of household head, 1992-2007
Figure 37: Average credit card debt, by age, 2008 vs. 2012
Retirement confidence still relatively low
Figure 38: Worker confidence in having enough to live comfortably in retirement, 2002-12
Figure 39: Retiree confidence in having enough to live comfortably in retirement, 2002-12
Figure 40: Percentage of respondents who believe they will not be able to retire completely, by generation, February 2012
LEADING COMPANIES
Key points
Financial services companies have slipped in Fortune 500
Figure 41: Revenues of leading financial products companies, 2010-11
Figure 42: Profits of leading financial products companies, 2010-2011
Customers like bank facilities more, fees less
Credit unions are increasing memberships
Figure 43: Largest credit unions, by assets, as of March 31, 2012
INNOVATIONS AND INNOVATORS
Key points
Merrill Edge helps people “face” retirement
Credit union creates website for high school and college students
BBVA launches a new mortgage for first time buyers
BancVue helps financial institutions build their future customer base
MARKETING CHANNELS
Key points
Friends and family are important sources of information
Figure 44: Preferred sources of financial information, by generation, October 2012
Communicating via technology is vital to Millennials
Banks, Millennials and Twitter
Figure 45: Change in Twitter usage, by age, November 2010-February 2012
Branches are becoming social centers
MARKETING STRATEGIES
Key points
Talking to Millennials is different
Millennials
Figure 46: Wells Fargo direct mail ad, 2012
Figure 47: Citibank email ad, 2012
Figure 48: New York Life print ad, 2012
Figure 49: BMO television ad, 2012
Gen X
Figure 50: Wells Fargo direct mail ad, 2012
Figure 51: Citibank print ad, 2012
Figure 52: U.S. Trust online ad, 2012
Figure 53: Wells Fargo television ad, 2012
Retirement
Figure 54: Citizens bank direct mail ad, 2012
Figure 55: Wells Fargo print ad, 2012
Figure 56: Wells Fargo email ad, 2012
Figure 57: Blue cross blue shield print ad, 2012
Figure 58: Prudential television ad, 2012
THE CONSUMER – FINANCIAL GOALS
Key points
Figure 59: Specific financial goals for next two or three years, by generation, October 2012
Figure 60: Specific financial goals for next two or three years, by generation and gender, October 2012
Figure 61: Specific financial goals for next two or three years, by generation and income, October 2012
Figure 62: Specific financial goals for next two or three years, by generation and education, October 2012
PRIMARY FINANCIAL CONCERNS
Key points
Figure 63: Primary financial concern, by generation, October 2012
Figure 64: Primary financial concern, by generation and gender, October 2012
Figure 65: Primary financial concern, by generation and education, October 2012
ATTITUDES TOWARD ADVISERS
Key points
Figure 66: Attitudes toward advisers, by generation, October 2012
Figure 67: Attitudes toward advisers, by generation and gender, October 2012
Figure 68: Attitudes toward advisers, by generation and income, October 2012,
ATTITUDES TOWARD MOBILE TECHNOLOGY
Key points
Figure 69: Attitudes toward mobile technology, by generation, October 2012
Figure 70: Attitudes toward mobile technology, by generation and gender, October 2012
Figure 71: Attitudes toward mobile technology, by generation and income, October 2012,
LEARNING ABOUT INVESTMENTS AND FINANCE
Key points
Figure 72: Preferred sources of information about investments and finance, by generation, October 2012
Figure 73: Preferred sources of information about investments and finance, by generation and gender, October 2012
Figure 74: Preferred sources of information about investments and finance, by generation and education, October 2012
RESPONDING TO FINANCIAL COMMUNICATIONS
Key points
Figure 75: Preferred channels for financial advertisements, by generation, October 2012
Figure 76: Preferred channels for financial advertisements, by generation and gender, October 2012
INTEREST IN NEW PRODUCTS AND SERVICES
Key points
Figure 77: Interest in products and services, by generation, October 2012
Figure 78: Interest in products and services, by generation and gender, October 2012
Figure 79: Interest in products and services, by generation and education, October 2012
CLUSTER ANALYSIS
Advice Seekers
Demographics
Characteristics
Opportunity
Young Info-Seekers
Demographics
Characteristics
Opportunity
Tech-Savvy Independents
Demographics
Characteristics
Opportunity
Solo Flyers
Demographics
Characteristics
Opportunity
Cluster Characteristic Tables
Figure 80: Target clusters, October 2012
Figure 81: Specific financial goals for next two or three years, by target clusters, October 2012
Figure 82: Primary financial concern, by target clusters, October 2012
Figure 83: Attitudes toward advisers, by target clusters, October 2012
Figure 84: Attitudes toward mobile technology, by target clusters, October 2012
Figure 85: Sources of information about investments and finance, by target clusters, October 2012
Figure 86: Preferred channels for financial advertisements, by target clusters, October 2012
Figure 87: Interest in new products and services, by target clusters, October 2012
Cluster demographic tables
Figure 88: Target clusters, by demographic, October 2012
Cluster methodology
APPENDIX – TRADE ASSOCIATIONS

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