Expanding into financial services

Challenge

A major retailer with numerous outlets in large and small communities across Canada wanted to explore the idea of adding more financial services to their product offer.

Solution

The Strategic Counsel employed a variety of research tools – qualitative and quantitative – to help identify explicit/implicit motivations and barriers to using the retailer for a range of banking services. The study also explored the level of service customers would want from the retailer. The study identified customer segments that would be more interested in using banking services. Moreover, the study informed the retailer which banking partner would be best to provide the banking infrastructure.

Outcome

After reviewing the results of the research the retailer decided not to proceed for key reasons: the service/knowledge expectation levels of the staff; the required investment to modify retail stores in order to offer financial services; and the inability to find and define a profitable customer segment to target.