One of the most effective ways in which financial services providers have been able to target smaller sections of the consumer base is by establishing relationships with a number of different charities, clubs, associations and other groups. They have then been able to deploy a range of marketing techniques in order to target a particular group of individuals who are bound by some common purpose or interest.

In essence, affinity marketing therefore allows an organisation to leverage some of the equity that they have built up within their brand by selling their supporters a variety of products which they do not currently provide. As such, it is basically concerned with nurturing the healthy relationship that exists between an affinity group and its supporters in order to encourage the development of more enduring customer relationships.

The establishment of affinity relationships within the financial services industry has been most prevalent in the credit card market, although they have also become popular in the deposit savings, personal loan and general insurance sectors. While the success of affinity schemes has been more patchy in other product areas, these techniques have also been deployed in other sectors of the market such as mortgages, life, pensions and investments.

With the financial services market becoming increasingly mature, this trend away from mass marketing can only be expected to continue. Affinity marketing is therefore likely to gain in prominence as a means of giving financial services providers a competitive advantage and allowing them to differentiate their product offering from those of their competitors.

This report aims to provide an analysis and assessment of some of the main themes that are currently affecting the affinity market highlighting the key issues involved in developing successful, mutually beneficial relationships. In addition it also uses research commissioned specifically for use in this report in order to gain a greater appreciation of consumer attitudes towards affinity marketing.