Sociographic Segmentation: The SME Market and Financial Services

Banking marketers are becoming alert to opportunities among the small to medium enterprises (SMEs) that in the USA alone generate 40 per cent of the GNP and make $1 trillion in annual purchases. In this study, sociographic segmentation (based on a cluster analysis of purchasing determinants) of 1,021 US SMEs revealed three significant and stable market segments. Return Seekers (40 per cent of the market) are most likely to be price‐sensitive, to create competitive conditions among the banks that serve them, to adopt new products and to use more banking services than other segments. Relevance Seekers (33 per cent) tend to be sceptical and conservative, need to be assured that any proposed service is of direct relevance to business, and lag in new banking‐product adoption. Relationship Seekers (16 per cent) give great weight to the personal referrals of colleagues; seek personal support; and are highest in institutional loyalty.