Three takeaways for keeping your financial brand top-of-mind
It takes time and careful consideration to make the right choice, especially when you are planning for your retirement. Uncle Sam's Social Security, if there's any left by the time you reach, shall we say, a certain age, is hardly enough to make ends meet. That's why, Yahoo! Insights data shows, that of all the financial services, retirement accounts have the longest purchase path.
According to our research, 84% of consumers studied who were in the market for a retirement account took two months or more to choose a provider. That simple fact offers opportunities for financial services advertisers to attract and hold the attention of potential customers.
Yahoo!'s study, "The Long and Winding Road: The Gamesmanship of Shopping," offers insight into how consumers research, compare and eventually make purchases for all sorts of products and services. In this post we'll explore how consumers make the decision to open an IRA, and offer tips on how financial services advertisers can attract and entice those consumers through the purchase funnel.
How consumers research retirement accounts
While consumers shopping for checking and savings accounts and certificates of deposit (CD) accounts tend do much of their research online, those shopping for retirement accounts tend to rely more heavily on one-on-one expert advice and word-of-mouth. Thirty-six percent of those studied said that they chose a retirement account based on the advice of someone that they trusted.
It's also important to understand at what point in the purchase cycle consumers decide in favor of one brand against its competitors. According to the data, the majority of those surveyed (55%) chose their brand while doing research, compared to 25% who made a decision in the physical financial institution or at the financial institution's website. That leaves advertisers a big opportunity to influence the purchase decision in the research phase. However, the data also shows, only 14% of those surveyed said that they thought online advertising would make them more likely to enroll in a given retirement account.
That doesn't mean the Web doesn't matter to retirement account shoppers. Rather, it means that your online marketing efforts need to be more targeted and personalized to the consumer, and act in a supporting role to your offline marketing and expertise.
Key takeaways
- Retirement account shoppers have the longest purchase process of any financial product (two months or more). Develop your online campaigns to drive awareness and affinity with your brand during the consumer's early discovery and research phases.
- Your online marketing should serve a supporting role to your offline marketing efforts.
- Word-of-mouth is extremely influential to retirement account consumers. It's vital to nurture positive buzz online (through social media, for example) and offline to build trust and encourage consideration. Position yourself as a trusted expert, not merely a service provider.
See also:
- Three Tips for Targeting Checking and Savings Account Prospects
- How to Target Financial Consumers Online: Certificates of Deposit
Stay tuned for more research from "The Gamesmanship of Shopping" study around financial services. And to find out more about how your brand can benefit from Yahoo! Insights research, contact a Yahoo! representative.
— Michael Mattis
