Why segmentation of your database is critical for your financial marketing strategy


Bridgette Ellis

Account Executive

Posted on March 12, 2018

The Markets in Financial Instruments Directive, more commonly known and referred to as MiFID II was effective as of January this year, prompting greater protection for investors as well as guaranteeing transparency across all asset classes.

Similarly to the emergence of the General Data Protection Regulation or GDPR which comes into play on 25th May this year, both regulations aim to ensure that each individual is catered to on a tailored basis – whether that means holding specific data on an individual based on their needs or only offering bespoke products or services based on an individual requirement.

Both regulations have since prompted companies across all industries to ensure that they are ready and compliant; particularly in regards to databases.

Your database not only holds generic data, it also contains sensitive information and this can pose a challenge for financial marketers when formulating a strategy; which is why it is imperative that your client database is segmented accordingly.

Different factors influence your clients’ decisions; whether that be their attitude to risk, income and disposable income, knowledge and understanding or a combination of some or all of those factors – no individual is the same and so therefore, shouldn’t be treated as such.

The segmentation of a financial database can be challenging as any one client can fall under different segments for very different reasons based on the information that you hold on them, however, it is critical that this is done to maximise any campaign activity that you are undertaking.

Not only will it benefit you and your business in terms of costs, but marketing to a defined segmented database respectively can increase ROI, loyalty and boost trust among your current clients as well as prospective clients.

It isn’t something to be fearful of and it shouldn’t be a daunting task, in actual fact, it should be a basic step to ensure that both you and your business are communicating effectively with relevant information in a timely manner; and having a segmented database especially within financial marketing will aid and encourage that process to work in the best possible way for you.