Shopping Consumer - 1Age. Income. Generation. Gender. Geographic location. You name it and marketers can segment it with many demographic tools. The reality is that all demographic and research tools are not created equally. While the examples listed above provide valuable insights, there is another more powerful tool: psychographics.

In the white paper The Power of Psychographics: Segmented & Targeted Marketing Strategies, authors Kelley Parks and Lisa Taylor Phelps explore how credit unions can leverage their data to find more meaningful information about their members. The paper was authored for CUNA’s Marketing and Business Development Council.

“Credit union marketers have the opportunity to connect with members and potential members on a deeper level when psychographics are used to make their offers and communications more relevant,” they say in the paper.

So what in the world is psychographics? As the authors note, “Psychographics classifies people based on psychological traits such as attitudes, habits, interests and opinions. In other words, geographic data explains where your member is; demographics explain who your member is and psychographics explain why they buy.”

Key insights psychographics can bring to your credit union include what matters most to your members, what is their attitude toward technology (early adopters vs. laggards), what type of experience are they seeking and what are they desiring from banking?

The white paper explores many facets of this important subject, including:

Why psychographics?

  • Creating and defining member segments
  • Methods of gathering meaningful data
  • Leveraging data for success
  • Using psychographics to improve your marketing

One of the best parts of the paper is its use of actual credit union examples, including one from FAA Credit Union. Alison Wolf, VP of Marketing for FAA Credit Union, explains in the paper how they use MCIF, CRM, dashboard analytics and credit scoring models to gather key psychographic data. “We target those who have a propensity of certain behaviors like auto or home buying, life stages, product preferences and credit needs,” Wolf says.

Financial marketers are always seeking more powerful tools and psychographics offers one of the most critical ones available.

To order the white paper, click here.

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