Thought Leadership

Building a sophisticated market segmentation strategy for the banking industry

Published: June 19,2015

 Building a sophisticated market segmentation strategy for the banking industry

A market segmentation strategy is important to banks and financial institutions because it is the key to optimizing marketing and customer service delivery. There are two fundamental strategies organizations can take to market their products and services - it can try to sell to everyone (mass-marketing) or it can focus its efforts on target segments (segmentation-marketing). In most cases, mass-marketing is expensive and ineffective. For this reason, a market segmentation study should be a key component in the company's overall strategic plan.