Affinity Metrics: Consumer Usage of Affinity Distribution Channels in UK Financial and Other Services

Table of Contents

0.0 EXECUTIVE SUMMARY

• Research background and structure
• Almost 39 million adult consumers in the UK are members of at least one loyalty scheme
• Members of non-universal affinity categories tend to earn more than the average across all adults
• Charity credit cards are the most popular form of affinity card org. through not-for-profit entities
• For all but a handful of prods. and servs., football and other sports clubs offer little or no potential
• A high number of loyalty scheme members converts into some apparently impressive sales vols.
• Media affinities can be used to promote a fairly broad array of financial and other prods. or servs.
• Acquisition rates through professional and trade associations are notably high for dental insurance
• Over one million personal motor ins. policies are in force through the retailer distribution conduit
• Legal services organised by trade unions attract comparatively high utilisation rates
• The impact of the worksite is particularly high for pensions and different forms of health insurance
• Affinity marketing opportunities are also in evidence for legal, telecoms and utilities services

1.0 INTRODUCTION

• Research rationale
• This research provides a detailed analysis of eight important non-universal affinity categories
• … with results presented across 25 financial and three other products and services
• … and compared with that gathered for both the Post Office and supermarkets and other retailers
• Research sample and mechanics
• Finaccord
• Other UK consumer research publications
• UK affinity and partnership marketing publications
• IPT / Tpoll

2.0 AFFINITY CHARACTERISTICS

• Introduction
• The number of cons. belonging to each affinity category exceeds 10 million in all but one case
• Age profile of affinity group members
• Between the ages of 25 and 64, members of loyalty schemes are the most numerous
• … while supporters of charities are characterised by the highest average age
• Annual household income profile affinity group members
• Cons. earning over £50,000 per annum are least likely to be accessible through trade unions
• … although trade union members and their relatives boast the third highest ave. annual income
• Data tables
• Charities
• Educational institutions
• Football and other sports clubs
• Loyalty schemes
• Newspapers and magazines
• Professional and trade associations
• Trade unions
• Worksite

3.0 AFFINITY PERFORMANCE

• Introduction
• An implied number of customers can be computed for each prod. or service and each channel
• … with results for the 28 financial and other prods. and services grouped into six product families
• Charities
• Motor insurance, household insurance and associated policies
• Life, accident and health insurance
• Niche insurance
• Lending products and associated insurance
• Savings and investments
• Legal, telecoms and utilities services
• Overview of implied numbers
• Customers acquiring through charities are most numerous for credit cards and pet insurance
• Educational institutions
• Motor insurance, household insurance and associated policies
• Life, accident and health insurance
• Niche insurance
• Lending products and associated insurance
• Savings and investments
• Legal, telecoms and utilities services
• Overview of implied numbers
• For just one service does the implied number of customers exceed the 100,000 threshold
• Football and other sports clubs
• Motor insurance, household insurance and associated policies
• Life, accident and health insurance
• Niche insurance
• Lending products and associated insurance
• Savings and investments
• Telecoms and utilities services
• Overview of implied numbers
• Football and other sports clubs appear to be generating very weak affinity sales volumes
• Loyalty schemes
• Motor insurance, household insurance and associated policies
• Life, accident and health insurance
• Other financial services
• Legal, telecoms and utilities services
• Overview of implied numbers
• A significant proportion of members acquire through loyalty schemes in several instances
• Newspapers and magazines
• Motor insurance, household insurance and associated policies
• Life, accident and health insurance
• Niche insurance
• Lending products and associated insurance
• Savings and investments
• Legal, telecoms and utilities services
• Overview of implied numbers
• Media affinity groups appear to be particularly well-suited to legal and telecoms propositions
• Post Office
• Personal life and non-life insurance
• Lending products and associated insurance
• Savings and investments
• Overview of implied numbers
• The Post Office intermediates a significant volume of products or policies in a number of cases
• Professional and trade associations
• Motor insurance, household insurance and associated policies
• Life, accident and health insurance
• Niche insurance
• Lending products and associated insurance
• Savings and investments
• Legal, telecoms and utilities services
• Overview of implied numbers
• Professional and trade associations offer a broad array of financial and other product or services
• Supermarkets and other retailers
• Motor insurance, household insurance and associated policies
• Life, accident and health insurance
• Niche insurance
• Lending products and associated insurance
• Savings and investments
• Legal, telecoms and utilities services
• Overview of implied numbers
• Customers acquiring through retailers are most numerous for credit cards and mobile insurance
• Trade unions
• Motor insurance, household insurance and associated policies
• Life, accident and health insurance
• Niche insurance
• Lending products and associated insurance
• Savings and investments
• Legal, telecoms and utilities services
• Overview of implied numbers
• Members of trade unions quite frequently acquire legal services and ins. through their union
• Worksite
• Motor insurance, household insurance and associated policies
• Life, accident and health insurance
• Niche insurance
• Lending products and associated insurance
• Savings and investments
• Legal, telecoms and utilities services
• Overview of implied numbers
• Personal / stakeholder pensions and private medical ins. are often acquired at the worksite

GRAPHICS / TABLES

• The financial services dist. channel universe - major non-universal affinity categories and other partner orgs
• Sample breakdown by age group, household income band and geographical location
• Age group distribution of adult affinity group members in the UK, 2007
• Average age of adult affinity group members in the UK, 2007
• Average annual household income group distribution of adult affinity group members in the UK, 2007
• Average annual household income of adult affinity group members in the UK, 2007
• Analysis of supporters of charities by gender, age group and annual household income, 2007
• Analysis of current and former alumni of educ. insts. by gender, age group and annual household inc., 2007
• Analysis of supporters of football and other sports clubs by gender, age group and annual household inc., 2007
• Analysis of members of loyalty schemes by gender, age group and annual household income, 2007
• Analysis of regular readers of newspapers and magazines by gender, age group and annual house. inc., 2007
• Analysis of members of professional or trade assoc. by gender, age group and annual household inc., 2007
• Analysis of members of trade unions by gender, age group and annual household income, 2007
• Analysis of employees of businesses and other orgs. by gender, age group and annual household inc., 2007
• % of supporters of charities acquiring motor ins., house. ins. and assoc. pols. through a charity, 2007
• % of supporters of charities acquiring life, accident and health insurance through a charity, 2007
• % of supporters of charities acquiring niche insurance through a charity, 2007
• % of supporters of charities acquiring lending products and associated insurance through a charity, 2007
• % of supporters of charities acquiring savings and investment products through a charity, 2007
• % of supporters of charities acquiring legal, telecoms and utilities services through a charity, 2007
• Implied no. of supps. of charities holding fin. and other prods. or servs. that they acquired through a charity, 2007
• Implied no. of financial services and other policies or contracts currently held acquired through charities, 2007
• % of alumni of educ. insts. acq. motor ins., house. ins. and assoc. pols. through an educ. inst. attended, 2007
• % of alumni of educ. insts. acquiring life, accident and health insurance through an educ. inst. attended, 2007
• % of alumni of educ. insts. acquiring niche insurance through an educ. inst. attended, 2007
• % of alumni of educ. insts. acq. lending products and associated ins. through an educ. inst. attended, 2007
• % of alumni of educ. insts. acquiring savings and investment products through an educ. inst. attended, 2007
• % of alumni of educ. insts. acquiring legal, telecoms and utilities services through an educ. inst. attended, 2007
• Imp. no. of alumni of educ. insts. hold. fin. and other prods. or servs. that they acq. through an educ. inst., 2007
• Implied no. of financial services and other policies or contracts currently held acquired through educ. insts., 2007
• % of supps. of football / sports clubs acq. motor ins., house. ins. and assoc. pols. through the club supp' d, 2007
• % of supps. of football / sports clubs acq. life, accident and health insurance through the club supported, 2007
• % of supporters of football and other sports clubs acquiring niche insurance through the club supported, 2007
• % of supps. of football / sports clubs acq. lending products and associated ins. through the club supp' d, 2007
• % of supps. of football / sports clubs acq. savings and investment products through the club supported, 2007
• % of supporters of football / sports clubs acq. telecoms and utilities services through the club supported, 2007
• Imp. no. of supps. of football / sports clubs holding fin. and other prods. or servs. acq. through club supp' d, 2007
• Implied no. of fin. services and other pols. or contracts currently held acq. through football / sports clubs, 2007
• % of members of loyalty schemes acquiring motor ins., house. ins. and assoc. pols. through a scheme, 2007
• % of members of loyalty schemes acquiring life, accident and health insurance through a scheme, 2007
• % of members of loyalty scheme acquiring other types of financial services through a scheme, 2007
• % of members of loyalty schemes acquiring legal, telecoms and utilities services through a scheme, 2007
• Implied no. of members of loyalty schemes holding fin. and other prods. or servs. acq. through a scheme, 2007
• Implied no. of financial services and other pols. or contracts currently held acq. through loyalty schemes, 2007
• % of readers of news. and mags. Acq. motor ins., house. ins. and assoc. pols. through a news. or mag., 2007
• % of readers of news. and mags. acquiring life, accident and health insurance through a news. or mag., 2007
• % of readers of news. and mags. acquiring niche insurance through a news. or mag., 2007
• % of readers of news. and mags. acq. lending products and associated ins. through a news. or mag., 2007
• % of readers of news. and mags. acquiring savings and investment products through a news. or mag., 2007
• % of readers of news. and mags. acquiring legal, telecoms and utilities services through a news. or mag., 2007
• Imp. no. of readers of news. and mags. holding fin. / other prods. or servs. acq. through a news. or mag., 2007
• Implied no. of financial services and other pols. or contracts currently held acq. through a news. or mag., 2007
• % of all consumers acquiring personal life and non-life insurance through the Post Office, 2007
• % of all consumers acquiring lending products and associated insurance through the Post Office, 2007
• % of readers of all consumers acquiring savings and investments through the Post Office, 2007
• Implied no. of consumers holding financial products or services that they acquired through the Post Office, 2007
• Implied no. of financial services and other policies or contracts currently held acq. through the Post Office, 2007
• % of members of prof. / trade assocs. acq. motor ins., house. ins. and assoc. pols. through their assoc., 2007
• % of members of prof. / trade assocs. acquiring life, accident and health insurance through their assoc., 2007
• % of members of professional and/ trade associations acquiring niche insurance through their association, 2007
• % of members of prof. / trade assocs. acquiring lending products and associated ins. through their assoc., 2007
• % of members of prof. / trade assocs. acquiring savings and investment products through their assoc., 2007
• % of members of prof. / trade assocs. acquiring legal, telecoms and utilities services through their assoc., 2007
• Imp. no. of membs. of prof. / trade assocs. holding fin. and other prods. or servs. acq. through their assoc., 2007
• Implied no. of financial services and other policies or contracts currently held acquired through their assoc., 2007
• % of all consumers acquiring motor ins., house. ins. and assoc. pols. through a supermkt. or other retailer, 2007
• % of all consumers acquiring life, accident and health insurance through a supermarket or other retailer, 2007
• % of all consumers acquiring niche insurance through a supermarket or other retailer, 2007
• % of all consumers acquiring lending products and associated ins. through a supermkt. or other retailer, 2007
• % of all consumers acquiring savings and investment products through a supermarket or other retailer, 2007
• % of all consumers acquiring legal, telecoms and utilities services through a supermarket or other retailer, 2007
• Implied no. of all cons. holding fin. and other prods. or servs. acq. through a supermkt. or other retailer, 2007
• Imp. no. of financial servs. and other pols. or conts. currently held acq. through a supermkt. or other retailer, 2007
• % of members of trade unions acquiring motor ins., house. ins. and assoc. pols. through their union, 2007
• % of members of trade unions acquiring life, accident and health insurance through their union, 2007
• % of members of trade unions acquiring niche insurance through their union, 2007
• % of members of trade unions acquiring lending products and associated insurance through their union, 2007
• % of members of trade unions acquiring savings and investment products through their union, 2007
• % of members of trade unions acquiring legal, telecoms and utilities services through their union, 2007
• Imp. no. of membs. of trade unions holding fin. and other prods. or servs. that they acq. through union, 2007
• Implied number of financial services and other policies or contracts currently held acq. through their union, 2007
• % of employees acquiring motor ins., house. ins. and assoc. pols. through the worksite, 2007
• % of employees acquiring life, accident and health insurance through the worksite, 2007
• % of employees acquiring niche insurance through the worksite, 2007
• % of employees acquiring lending products and associated insurance through the worksite, 2007
• % of employees acquiring savings and investment products through the worksite, 2007
• % of employees acquiring legal, telecoms and utilities services through the worksite, 2007
• Implied no. of emps. holding fin. and other products or services that they acquired through the worksite, 2007
• Implied no. of financial services and other pols. or contracts currently held acquired through the worksite, 2007