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New Mintel Report Observes That Consumers Feel Confused By Downpour of Financial Messaging
Chicago (April 26, 2006)- According to a recent Mintel report on consumer behavior in financial services, consumers are increasingly inundated by offerings from financial institutions. The availability of diverse options provides consumers with more choices, but it also presents the potential for overload. For instance, last year consumers received more than 21.5 billion direct mail offers promoting financial services according to Mintel Comperemedia, a competitive intelligence service that analyzes direct mail and print media. This is a 20 percent jump from 2004, when consumers received more than 17.9 billion direct mail acquisition offers promoting banking, credit cards, insurance, investment, and mortgage and loan programs.
"Consumers are overloaded with financial services messages," said Susan Menke, senior financial services analyst for Mintel. "Consumers love choices, but they don't understand what they are being offered. There are simply too many campaigns, and many campaign messages are too complex."
According to Mintel's report, consumers are dealing with "information overload" in several ways. This includes limiting their choices to familiar companies or products. Consumers also tend to focus on single aspects of offers, such as the introductory rate or monthly payment, which may oversimplify their decision-making process. One reason for the success of GEICO and Progressive Insurance in recent years was simplified messaging that focused primarily on price.
The report notes that Charles Schwab has also experienced success with their "Talk to Chuck" campaign, which provides a back-to-basics approach to marketing. One ad states that there are many options out there, but Charles Schwab has made the choice easy by presenting only seven options.
"Companies have the opportunity to break through the consumer clutter," said Menke. "By providing clean and simple campaigns, companies can provide messaging that consumers understand and easily connect with their everyday lives. There are many untapped audiences for financial services products, and using unique messaging to capture them will be crucial for companies that want to implement successful marketing strategies."
Mintel Comperemedia provides competitive intelligence for businesses looking to advance and improve their direct marketing strategy. Tracking direct marketing (including mail, email and print advertising) targeted at consumers, small businesses and insurance agents, Mintel Comperemedia offers a unique perspective on everything from banking trends to insurance trends to credit card statistics. For more than 38 years, Mintel has provided insight into key worldwide trends, leading the industry for consumer, product and media intelligence.
Joanna Peot
Public Relations Executive
312-628-7946
jpeot@mintel.com