Survey Shows Which Buyers To Target For Non-Traditional Products
Life insurers looking to sell non-traditional products would do best directing their efforts to affluent singles, both young and old, and empty nesters in their 50s and 60s, according to a new survey unveiled here at the annual meeting of the American Council of Life Insurers.
Conducted by the ACLI and KPMG LLP, the survey, titled the 21st Century Financial Services Consumer, chose not to divide consumers into traditional demographic groups but into six “psychographic” segments instead.
These six segments each have their own characteristics regarding tolerance for risk, willingness to try new financial products and motivation to build wealth.
The six segments are: successful innovators, naive innovators, carefree spirits, cautious investors, pessimistic conformists and laggards. The survey concluded that the segment that presents the greatest opportunity for insurers is the successful innovators.
Among the characteristics of successful innovators are that they:
–are eager to learn and discover new things;
–are most likely to use the Internet for information;
–are usually the first to buy new financial products and services;
–have a lot of wealth and a big stake in the market;
–are up to date with all the changes in the market, and review their financial situation regularly.
The survey detailed the characteristics of the other segments.
–are risk takers and are willing to try new products, often as soon as they come out in the market;
–believe it is important to be in a leadership role;
–say making money is important to them and are wealthier than average;
–are least likely to believe that spiritual values take precedence over material things;
A large percentage of naive innovators are in their late 30s or early 40s and are singles or double income with no kids.
–feel they have a lot at stake in the market, are up to date on financial news, and review their financial situations on a regular basis;
–do a lot of research;
–do not like to try new and different things;
–are least likely to go bargain hunting.
Cautious investors, the survey says, tend to be affluent empty nester men in their 50s and 60s.