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a16z Podcast: Fintech for Startups and Incumbents

a16z Podcast

CHAPTER

Nurturing Potential: Customer Segmentation in Finance

This chapter explores the intricacies of customer segmentation in the financial and insurance sectors, emphasizing the need to nurture underperforming customers for improved profitability. It discusses innovative strategies incorporating behavioral economics to enhance customer engagement and decision-making, while also advocating for the development of sub-brands to target specific markets effectively. Additionally, the chapter highlights how large financial institutions can foster collaboration with startups through alternative strategies like 'turndown traffic,' creating a competitive advantage.

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