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Financial Product Opportunities in Today’s Ethnic Markets
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For financial marketers, America’s ethnic communities present opportunities to win new customers today and position for future growth. Ethnic Technologies, the global leader in multicultural marketing, research, data enhancements and analysis used Empirics, a behavioral segmentation solution for financial services marketing, to take a look at the major ethnic groups and two hot marketing topics in today’s financial services marketing: Switching auto insurers and obtaining financial products via direct mail. For the ethnic marketer’s acquisition and cross sell campaigns, Empirics provides the advantage of targeting those households that “look like today’s buyers,” assuring that their offers get positioned competitively within these markets.

Top Findings Include:

  • Texas ranks first in the number of African American households as having the highest likelihood of switching auto insurers.
  • California has about 30% of the Hispanic households that are most likely to be shopping their auto policy
  • California and Texas constitute over 50% of the Asian American auto insurance “switchers”.
  • Nearly forty-two percent (42%) of the African American households most likely to obtain financial products via direct mail live in NY, TX, and MD.

Contact Ethnic Technologies for a copy of the data used in this report.

Auto Insurer Switching:

GEICO’s computer-generated lizard is one of today’s most widely-recognized spokes-species. Add campaigns by insurers such as Allstate and Progressive into the mix and you have heightened consumer awareness, creating opportunities for auto insurers to win customers within ethnic communities.

The many campaigns may have raised consumer awareness but how do you identify how many and which households are most likely to switch? The Empirics segmentation for switching auto insurer is based on current switching behaviors in the market. The behavioral segmentation allows marketers to see how not only how big today’s “switcher” market is but also how to target.

What We Found:

There are nearly 900,000 households in the three major ethnic groups that are Empirics-rated most likely to switch auto insurers. Each of these households represents:

  • The most attractive market to target in acquisition campaigns
  • The insureds most at risk of “moving their business” to a competing insurerHere are some highlights on auto insurer switching in the major ethnic groups:

African Americans:

Texas may rank 5th in the number of African American households but it ranks first in the number of African American households identified by Empirics as having the highest likelihood of switching auto insurers. The Lone Star State also has the highest index (concentration) for auto insurer switching among the top 5 African American states.

Hispanics:

California has about 25% of Hispanic households but Empirics determines that the state has about 30% of the Hispanic households that are most likely to be shopping their auto policy. Add Texas to CA’s total and you’ve captured over 50% of the Hispanic households’ auto policies most likely to be in play.

Asian Americans:

Empirics determines that California and Texas constitute over 50% of the “switchers” in this ethnic group. Together, they represent about 38% of Asian American households.

  • The most attractive market to target in acquisition campaigns
  • The insureds most at risk of “moving their business” to a competing insurer

Obtaining Financial Products via Direct Mail:

Financial marketers are competing for insurance and investment dollars via many different channels: direct mail, online, personal selling. It’s a multichannel world and Empirics provides a behavioral segmentation that identifies the best opportunities for the financial marketer using direct mail.

Because credit cards are so heavily marketed via direct mail, this segmentation is designed to evaluate markets and target prospects based on the criteria of acquiring multiple financial products other than credit cards, such as life insurance, auto insurance, investments, banking products, and loans.

What We Found:

There are nearly 1,400,000 households in the three major ethnic groups that are Empirics-rated most likely to obtain financial products via direct mail promotion. This is a prime market for insurance and investment firms to identify and target the best prospect for their direct mail offers. Here are some highlights:

African Americans: 

Nearly forty-two percent (42%) of the African American households most likely to obtain financial products via direct mail live in NY, TX, and MD. Georgia may have the largest number of African American households, but it is not in the top markets for this ethnic group.

Hispanics:

Want your financial direct mail offer to “hit” nearly 70% of the Hispanic households most likely to use direct mail to obtain new financial products and investments? Target these 350,000+ households in CA, TX, AZ, and NM. These four states all show high concentrations of Hispanic households who are more likely to use direct mail in managing their financial affairs today.

Asian Americans:

Empirics determines that California, New York, and Texas constitute over 60% of today’s highest potential direct mail buyers/investors in this ethnic group. Asian Americans represent an attractive market and there are over 750,000 households that are score above average for financial direct mail use.

Whatever your next financial acquisition or cross sell campaign, Empirics can target it to today’s best market and prospects. Contact Ethnic Technologies today to find out more.

About Ethnic Technologies, LLC

Ethnic Technologies, LLC is the Global leader in Multicultural Marketing, Research, Data Enhancements and Analysis. The EthniCenter(r) from Ethnic Technologies is the result of over 30 years of continuous Multicultural, religious and language preference research. E-TECH’s Multicultural and Language Preference selects outperform the competition in accuracy and response rates time after time. Whether using the data for mailing, telemarketing, e-mail campaigns or modeling the same excellent results have been achieved.

Ethnic Technologies backs up their claims with a CHALLENGE GUARANTEE. Ethnic Technologies continually welcomes any challenge for benchmark testing of their ethnic products and services against anyone claiming to provide similar offerings, services or products. Ethnic Technologies consistently achieves the greatest results and returns with an industry leading accuracy of up to 95%. For more information, visit www.ethnictechnologies.com.
E-Tech and The EthniCenter are registered trademarks of Ethnic Technologies, LLC.

About Empirics

The Empirics segmentations are based on target profiles of today’s financial product market: the buyers, intenders, and holds of assets. Each segmentation represents consumers that marketers want to reach by using survey data to track behaviors across all competitors and channels. Empiric provides financial marketers with a comprehensive series of highly specific, universal behavior metrics for today’s market. The segmentations can be used in market and customer analysis, and cross sell and acquisition targeting.

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