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Maslow's theory of needs
Maslow has defined five needs of individuals in their various stages of life. The needs start from the basic requirements and move up the value chain during the life stage progression. Obviously, the need ladder will also move up with the change in the life stage of the customers. If banks structure products and services to match the different stages in the need spectrum, banks will achieve the twin objectives of customer satisfaction and business conversion.Let us demonstrate the above concept with the following illustration:
Need Level and their Matching Banking, Investment and Insurance Products
1. Physiological Needs
• Core Savings Accounts
• Personal Accident Cover
• Housing Loans
2. Security/Safety Needs
• Recurring, Fixed Deposit Products.
• Life Insurance Products - Endowment Products with low premium, long tenor and high maturity amounts.
• Tax Planning Banking, Insurance and Mutual Fund Products.
3. Social Needs
• Consumer Loans
• Personal Loans
• Home Loans
• Car Loans
• Loans for Professional Development for Doctors, Engineers, Lawyers, Chartered Accountants, Management Consultants, Architects etc.,
• Insurance Cover tagged to above loans.
• Retail Gold Coins.
• Health Policies for self and family.
• Investment Products like Mutual Fund Schemes.
• Systematic Investment Plans of Mutual Funds.
• Unit Linked Insurance Products.
4. Esteem Needs
• Special Term Deposit Products.
• Term Insurance Products.
• Second Housing Loans/Home Improvement/Home Decor Loans.
5. Self Actualization Needs
• Pensioners Loans
• Retirement Solutions in Banking & Pension Plans
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