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A few weeks back, AdAge Stat featured a great article entitled “The Redistribution of Wealth? It Already Happened.” The authors, Matt Carmichael and Peter Francese talk about the “profound implications for those of us who want to sell products to the diminishing group who have a pile of disposable income”. It is worth a read.
Now Dante Chinni, director of Patchwork Nation, has written a great opinion piece in the New York Times that asks the question “Why do Americans seem unperturbed about the growing gap between the rich and the poor?” You can read it here and share your own comments.
Then take a look at the map that appeared in The Atlantic a few weeks ago entitled “The Twelve States”. It shows pretty clearly how median family incomes have shifted in the past 30 years.
The topic is certainly gaining attention politically…but how about in marketing circles? Are we paying attention to the trendline? What do you think?
Today the Wall Street Journal ran an article featuring the work of economists Justin Wolfers and Betsey Stevenson of the University of Pennsylvania’s Wharton School on how the economic downturn has shaken consumers faith in financial institutions and the government. Surprised?
Citing global polling data from the Gallup Organization, the percentage of Americans who say they have confidence in financial institutions fell to an average 44% in 2009 and 2010, down 31 percentage points from 2006 and 2007. Only 23% said they had a great deal or a lot of confidence in banks in 2010. Statistics worth noting, wouldn’t you agree?
In January I posted information about Starbucks rebranding effort, set to launch with the celebration of their 40th anniversary. The campaign is now in full swing…the in-store effort began this week. This is why I love Starbucks:
J.D. Power & Associates 2011 US Retail Bank New Account Study reveals that retail banking consumers are shopping for- and switching banks at an increasing rate.
The study, which examines the bank shopping and selection process, as well as customer satisfaction with the account initiation and on-boarding processes, finds that 8.7% of customers in 2011 indicate they switched their primary banking institution during the past year to a new provider, whereas just 7.7% said the same in 2010. On average, customers in 2011 say they considered 1.9 banks while shopping — up from an average of 1.6 banks in 2010.
Apparently banks that perform well in acquiring new customers — Chase, PNC and SunTrust, for example — tend to be aggressive in their advertising and promotions.
One Big Take Away
The study offers several important insights. One such take away was that customers who choose to stay with their current primary bank for additional products are most driven by positive past experience and perceptions that their bank is more focused on customers than on profits,” said Rockwell Clancy, VP/financial services at J.D. Power & Associates. “Clearly, banks that are not providing a noticeably better experience are more likely to lose the business of indifferent customers who are more easily lured by the next attractive promotional offer to come along.”
Read more about the 2011 US Retail Bank New Account Study.