Table of Contents
Scope and Themes
-
- What you need to know
- Data sources
- Consumer survey data
- Advertising
- Abbreviations and terms
- Abbreviations
- Companies mentioned in this report
Executive Summary
-
- Overview
- The economy is not recovering
- Housing market still a wild card
- Big banks are doing well but customers are walking away
- The internet is key
- Social networking gains steam among those 50+
- Retirement a big issue for Gen Xers and Boomers
- New products show the right spirit for the times
- Advertising thoughts
Insights and Opportunities
-
- Key points
- Retirement is biggest concern to consumers
- Millennials are entering adult life later than usual
-
- Figure 1: Education level for males and females at ages 18-28, by generation, 2010
- Gen X is among the most troubled at this time
- Baby Boomers appropriately chagrined
- Swing and WWII Generations feel good about their lives
Inspire Insights
-
- Trend: Resilience
- Implications
- Trend: 1998 to 2010
- Implications
- Trend: Millennials are Different Investors
- Implications
- Trend: Life After Credit—Gen X Finance
- Implications
Market Size and Forecast
-
- Key points
- There will be more than 6 million Baby Boomers moving into retirement years
-
- Figure 2: U.S. population, by age, 2010-15
- People are in more debt today than 10 years ago
-
- Figure 3: Assets and liabilities per household, by age group, 1998 and 2008
-
- Figure 4: Income after taxes, 1998 and 2008
- Housing takes biggest bite out of household budget
-
- Figure 5: Household expenditure categories as a percentage of the total, 2008
- Prices of housing, healthcare and insurance/pensions have risen rapidly
-
- Figure 6: Comparison of total household expenditures, by category, 1998 and 2008
- Homeownership peaks at ages 55 to 74
-
- Figure 7: Home ownership and proportion with mortgage, by age group, 2008
- Figure 8: Estimated market value of home owned, by age group, 1998 and 2008
- Housing market still not back on track
-
- Figure 9: Median price of home, 1998-2009
- Figure 10: Existing home sales, 1998-2009
- Gen X have the largest households—about 3.4 persons on average
-
- Figure 11: Number of people and vehicles in household, by age group, 1998 and 2008
Competitive Context
-
- Key points
- The Financial Reform Bill has become law
- Consumers want the industry better regulated
-
- Figure 12: Impact of recession on trust of financial industry, by age, July 2010
- Banks are already finding ways to increase credit card fees
Segment Performance
-
- Key points
- If only life and the times in America were simple
- Millennial college grads are moving back home
- Millennials have different lifestyles
-
- Figure 13: Residence community type at ages 18-28, by generation group
- Figure 14: Marital status at ages 18-28, by generation group
-
- Figure 15: Race/ethnicity at ages 18-28, by generation group
- Figure 16: Education level for males at ages 18-28, by generation group
-
- Figure 17: Education level for females at ages 18-28, by generation group
- Figure 18: Employment at ages 18-28, by generation group
- The book Generations may give us a glimpse into the future
- Attitudes towards finances show a distinct distaste for debt
-
- Figure 19: Attitudes towards money and financial services, by generation, Spring 2010
-
- Figure 20: Attitudes and values, by generation, February 2009-March 2010
- Figure 22: Types of investment products owned, by generation, Spring 2010
Marketing Channels
-
- Key points
- Millennials and Gen X prefer the internet
-
- Figure 24: Influence of internet on media consumption, by generation, February 2009-March 2010
- Internet works for learning about finance
-
- Figure 25: Sources used for learning about investments and finance during past two years, June 2010
- Young males especially interested in finance
-
- Figure 26: Sources used for learning about investments and finance during past two years, by age, by generation, June 2010
- Millennials want non-traditional advertising, advisors
-
- Figure 27: Impact of recession on learning more about investments, by age, July 2010
- TV key source for news and entertainment
-
- Figure 28: Media attitudes and behaviors, by generation, Spring 2010
Market Drivers
-
- Key points
- The Great Recession is still taking its toll
-
- Figure 29: Total non-farm payroll increases and decreases, in thousands, July 2009-July 2010
- Figure 30: U.S. unemployment rate, by month, July 2009-July 2010
-
- Figure 31: Employment—Population ratio, January 2000-July 2010
- Retirement plans have gone awry
-
- Figure 32: When workers expect to retire and retirees actual retirement ages, 2000 and 2010
-
- Figure 33: Worker confidence in having enough money to live comfortably throughout their retirement years, 2000-10
- Figure 34: Retiree confidence in having enough money to live comfortably throughout their retirement years, 2000-10
-
- Figure 35: Experienced significant declines in my pension/retirement savings due to recent events in the economy and financial markets, among employees, March 2009 and June 2010
- Boomers want to protect assets
Leading Companies
-
- Key points
- BofA and Chase among Top 10
-
- Figure 36: Revenues of leading financial products companies, 2008 and 2009
- Figure 37: Profits of leading financial products companies, 2009
- Customers not happy with, don’t trust big banks
-
- Figure 38: Customer satisfaction with financial products companies, among current and former customers, December 2009
- Loyalty eroded; customers walking away from large banks
-
- Figure 39: JD Power 2010 Retail Banking Satisfaction Study, April 2010
- Millennials less price sensitive, more likely to buy auto insurance direct
-
- Figure 40: JD Power 2010 Insurance Shopping Study, June 2010
Brand Qualities
-
- Key points
- Trustworthiness, no fees, soundness important
-
- Figure 41: Most important qualities of financial institutions, June 2010
-
- Figure 42: Most important qualities of financial institutions, by generation, June 2010
- What exactly establishes trust?
-
- Figure 43: Factors that establish trust in personal relationships, July 2010
-
- Figure 44: Factors that establish trust with ideal financial services companies, July 2010
-
- Figure 45: Traits that describe actual banks, insurance companies and food companies, July 2010
-
- Figure 46: Traits that do not describe actual banks, insurance companies and food companies, July 2010
- Most are satisfied with their primary banks
-
- Figure 47: Level of satisfaction with primary financial services provider, June 2010
-
- Figure 48: Likelihood to recommend or say negative thing about primary bank to others, June 2010
Innovation and Innovators
-
- Key points
- Metlife—Your Keys to the Good Life
- Clarity Commitment from Bank of America
- Wells Fargo reduces the interest rates of its student loans
- MetLife Online Needs Calculator for Life Insurance
- The Game of Life—New York Life Edition
- Allstate launches GoodForLife
- GEICOteendriving.com Portal
- Progressive Snapshot Discount program
Advertising and Promotion
-
- Key points
- Social networking gains steam
- Other innovative uses of the online channel
- Direct mail, print and email advertising
-
- Figure 49: Farmers Insurance multiple products email ad, August 2010
- Figure 50: Geico Military Auto Insurance direct mail ad, March 2010
-
- Figure 51: Gerber Life Grow-Up® Plan direct mail ad, July 2010
- Figure 52: BBVA Direct mail ad, February 2010
-
- Figure 53: GEICO Print ad, June 2010
- Figure 54: New York Life Print ad, June 2010
-
- Figure 55: Fidelity Catch Up Plan Direct Mail, July 2010
-
- Figure 56: Legacy Independent Equity Index Annuity Direct Mail, July 2010
- Figure 57: The Bank Award for trustworthiness Print Ad, August 2010
-
- Figure 58: Tri-Cities Federal Credit Union Print Ad, August 2010
- TV commercials
-
- Figure 59: Allstate’s Mayhem Key and Deer, 2010
-
- Figure 60: Fidelity Green Line on woman’s floor, 2009
- Figure 61: Bank of America and clarity commitment summaries, 2010
-
- Figure 62: Travelers Insurance dog with bone, 2009
- Figure 63: ING and the Gazillion needed for retirement, 2010
-
- Figure 64: Kaiser Permanente Want to Be An Old Woman, 2008
The Consumer
-
- Key points
- Baby Boomers and Millennials are the largest generations
-
- Figure 65: Percentage of adult population, by generation, June 2010
- Boomers, Swing Generation defined as hard-working
-
- Figure 66: Adjectives used to describe one’s own generation, by generation, June 2010
- Gen X leads Boomers in savings, investments
-
- Figure 67: Ownership of financial products, by generation, June 2010
-
- Figure 68: Ownership of financial products, by gender and by generation, June 2010
- Millennials have many financial goals for next 2-3 years
-
- Figure 69: Personal goals for next 2-3 years, June 2010
- Gen X females want to eliminate credit card debt
-
- Figure 70: Personal goals for next 2-3 years, by generation and gender, June 2010
- Younger groups are more inclined to be optimistic about the future
-
- Figure 71: Opinions as to whether things will be better or worse financially in the next year, by generation, June 2010
- Retirement funds are biggest concern
-
- Figure 72: Opinions about personal finances, overall, June 2010
- Gen X and Boomers are especially worried
-
- Figure 73: Agreement with statements about financial concerns, by generation, June 2010
- Recession closing wallets; can people afford to retire?
-
- Figure 74: Opinions about the impact of the recession, by age, July 2010
- Two thirds recently experienced some type of hardship
-
- Figure 75: Personal changes experienced due to the recession, by generation, June 2010
-
- Figure 76: Personal goals for next 2-3 years, by generation, June 2010
- Most take steps to simplify
-
- Figure 77: How simplifying life as result of recession, by generation and age, July 2010
Cluster Analysis
-
- Simplists
- Demographics
- Characteristics
- Opportunity
- Adapters
- Demographics
- Characteristics
- Opportunity
- Investors
- Demographics
- Characteristics
- Opportunity
- Cluster characteristics
-
- Figure 78: Lifestage marketing clusters, July 2010
- Figure 79: Ownership of financial products, by cluster, June 2010
-
- Figure 80: Personal goals for next 2-3 years, by clusters, June 2010
-
- Figure 81: Most important qualities of financial institutions, by clusters, June 2010
-
- Figure 82: Personal changes experienced due to the recession, by clusters, June 2010
- Cluster demographics
-
- Figure 83: Lifestage marketing clusters, by gender, July 2010
- Figure 84: Lifestage marketing clusters, by age group, July 2010
-
- Figure 85: Lifestage marketing clusters, by income group, July 2010
- Figure 86: Lifestage marketing clusters, by race/ethnicity, July 2010
-
- Figure 87: Lifestage marketing clusters, by generation, July 2010
- Cluster methodology
Appendix: Simmons Mosaic Analysis
-
- Key points
- Affluent Suburbia heaviest users of financial products
-
- Figure 89: Types of investment products owned, by Mosaic type, Spring 2010
-
- Figure 90: Types of loans currently outstanding, by Mosaic type, Spring 2010
- Affluent Suburbia and Varying Lifestyles big users of internet
-
- Figure 91: Media attitudes and behaviors, by Mosaic type, Spring 2010
Appendix: Trade Associations
Back to top