How Would You Describe the Fiserv’s Segmentation of the Market?

Rima Bousaid                                            

Case #3

1-How would you describe the Fiserv’s segmentation of the market?

According the case study Fiserv segmented the groups they could target to use e-billing into six distinct groups with different behaviors and attitudes.  E-Savvy Planners are the people who seeks fast way to manage their bills, and early adopters of new technology and are likely to use financial management software. Maximizers are people comfortable with technology like checking investment online, have more credit card than other. Self-Improvers are people who like to save time, they don’t care much about security, are type of people who lose bills or forget to pays. Convenience Seekers are people keep all their paper bills for their records, don’t have much credit cards. Desperate Avoiders are people who worried about their bills, don’t use internet for paying bills online and forget when bills are due. Paranoid Paper-Pushers believe that people are wasting time with new technology, and like receiving paper bills by mail. Each segment have different perspective and behaviors and it depends on each segment lifestyle and the way they use technology in their daily life. Some of these segment like E-savvy and Maximizers meet the requirement to  Fiserv’s segmentation, According to the case the segmentation has change the cost for the consumer to pay their bills and make sure the consumer feel secure from changing to e-bill.

2- what target market should be chosen for Fiserv?

Target market for Fiserv should be the people who uses technology more often than other people. E-savvy Planners and Maximizers who shows high interest and are willing in using Fiserv. E-Savvy are the people who prefer electronic paper to pay bills, and they are hyper organized, spend more hours on online. Maximizers are people who are comfortable with new technology doesn’t not mind trying new things, and most likely to invest online. They type of people who Fiserv should work on to hit their target market and expand. They have the same interest in using the internet and are willing to convert from paper bill to E- bills. They find it more easier to handle their financial activities. Other segment are hard to convince and it is money and time consuming to convince them to change from paper billing to e-billing.

3- what is a reasonable sales forecast for Fiserv based on your recommended target market and marketing mix?

    As it is mentioned in the case, a concept test that Fiserv conducted of e-billing usage. The test was conducted on people who are not using e-billing, the consumer were receiving paper bill and e-billing at the same time for two months. Only 4.5 percent of sample interest in the offer. Then 8% response rate among E-savvy Planner and Maximizers, Fiserv provide $20 in gift card as a encouraging for the consumer  the rate went up to 53 percent agreed to try e-billing. After the two month trail 73 percent of participant agree to convert to e-billing. This test shows approximately what percent of consumer are willing to convert from paper bill to e-billing. I believe on the long run, sale forecast for Fiserv will go beyond 73 percent, with all the technology around us, people are willing to try new thing and new idea which helps them in making their financial statement more easier to manage. The product is to provide the consumer enough information and secure to use e-billing, consumer can pay  all their bills through e-bill. The billers doesn’t charge the consumer, the billers saw it as an opportunity to help in reducing the cost while sending the consumer bill to pay on due date. Promotion as mentioned before in the case  $20 gifts card and e-billing at account opening, the place is using trial period and it mentioned in the case they provide partnership with banks. In exhibit it shows by 2009 electronic bill payment gained a larger acceptance among the people, with all the comfort features that e-billing is providing the consumer over the regular payment methods dealing with postage and late fee etc.