Market Climate and Segmentation Results

Goal: The American Fraternal Alliance wanted to explore the market opportunity for its member fraternal benefit societies and their products and services. More specifically, they wanted to gain a better understanding of the prevailing attitudes and behaviors in the marketplace and identify the characteristics of the key segment(s) that represent the most fruitful targets for its members.

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Note: This is a very long and complex report filled with important information. Look for Alliance sponsored educational opportunities in the coming months to help you create an actionable plan and learn how to access and communicate with the key segments.

The segmentation study was undertaken to allow the Alliance to help fraternals:

• Find and focus on those people who are most likely to hear the message of fraternals and do business with them.

• Create new ways to solve the needs of those consumers.

Executive Summary

Perceptions of Community

• Most community involvement and impact is at the local level.

• Most feel…

  • Everyone should be involved in their communities.

  • Wish they had more spare time or money to help out.

  • Wish it was easier to support causes and organizations that are near and dear to their heart.

• Most wish to support companies that are…

  • Involved in causes that affect them personally

  • Socially responsible

  • Doing good things for the world

  • Helping those who cannot help themselves

• However, there is some skepticism around non-profits getting funds to those in need and actually making a difference.

Perceptions of the Life Insurance Industry

• The life insurance industry is somewhat more positively perceived than other industries.

  • However, there is still substantial room for improvement by…

    • Meeting needs better

    • Caring more about people

    • Building more trust

    • Giving back to the communities

Perceptions of the Fraternal Benefit Society Market

• Once fraternals are defined, target consumers feel fraternal benefit societies address many of the industry’s issues better than traditional life insurance companies—with the exception of offering products that meet the needs of most people.

• There are opportunities for fraternal benefit societies to:

  • Differentiate on unmet needs in the market, including “caring about people” and “putting people before profits”.

  • Improve perceptions related to business basics/cost of entry concerns, including competitive pricing and financial strength (stability, reputation).

Segment Overview

• A 5-segment solution emerged identifying the following consumer segments (listed in order from most to least targetable – and potentially valuable) to Alliance members:

  • Passionate Dabblers: They are not currently giving a lot to their communities but have a great desire to be doing more and seek out companies who help them do so. They are also the least likely to own insurance, the most likely to consider fraternal benefit societies for life insurance, and the most likely to be in the market soon.

  • Dedicated Do-Gooders: They are already going above and beyond and constantly seeking to do more. They are influencers and advocates. Community is a priority for them and they make an effort to devote time to it. They are more likely to go out of their way to support companies who are aligned with their causes. They are also informed – doing research before contributing to organizations.

  • Convenience Seekers: They currently contributing at average amounts, this group would like to find an easier way to give back. They are social and busy and feel they just do not have excess time to invest. They tend to look for name brands and the lowest price, but feel positively towards the “care about people” attributes FBS offer.

  • Skeptical Supporters: They tend to have a more negative view of financial services companies generally. While they do give some time and money, they tend to be less trusting of the effectiveness of charities and non-profit. This group is the least likely to be in the market for life insurance and tend to be more price-driven. A closer connection to their community is not a priority.

  • Satisfied Contributors: They are generous and are happy with their efforts. They are not seeking ways to do more or look to companies to help them do more for their community. They evaluate life insurance decisions almost solely based on the quality of the company and the policy.