Liberty survey reveals lifestyle is the primary influencer in money decisions

Shani Erwee, Head of Insights at Liberty.

There is a general misconception in the financial services industry that creating wealth is the main motivator for money management decisions among consumers. However, based on the results of an in depth customer survey conducted by Liberty, lifestyle wins as the primary influencer in money management decisions. Security is the second determining factor and creating wealth is the third priority.

Shani Erwee, Head of Insights at Liberty says, “Every day of our lives, we make choices about how and where we spend our money. Sometimes saying yes to one thing means saying no to something else. These decisions can influence our lives and future. To deliver exceptional long-term insurance products that meet the exact needs of the customer, insurers must understand their customer buying decisions.”

The primary objective of the research is to thoroughly understand the deeper motivation in making money decisions including behaviour as well as intrinsic and unstated needs. A secondary objective is to provide high level guidance to the customer value proposition and customer experience.

Real stories from each age group

To truly understand the real issues facing individuals in each age group, Liberty collected more than 200 stories and analysed these.

Family above all else

“Every second month I have to visit my children in the Eastern Cape, but it’s impossible for me to pay all my accounts and travel to them. So I have to make the difficult choice of having bad credit to see my children. I feel like a failure if I don't see my boys, because they grow so fast, but I can't stomach going backwards in credit. Is there hope for a man that wants to be a good father?” says Liberty customer in the 21 to 34 year old segment.

Buckling under black tax

“I spend most of my money taking care of my siblings and their kids. Making sure they don't go hungry or without food and clothes,” says a Liberty customer in the 35 to 44 year old segment.

Buried alive under a pile of work

“I am supporting a family of three daughters. Two of whom are still at university and one wants to get married. I received my annual bonus. As usual the full amount had to go towards my family and university fees!” says a Liberty customer in the 45 to 54 age group.

In analysing each segment’s narratives in detail, there are very clear trends in similarity and differences, as well as indicators of progression through life stages.

Erwee continues, “These stories give us a valuable look at the challenges facing customers in each age group and provide valuable insights to Liberty to help these customers solve their problems.”

Covering lifestyle

"These insights assist in ensuring that Liberty continues to provide relevant advice, innovative solutions and enhancements that meet the needs of customers," adds Liberty’s Group Executive for Sales and Distribution, Johan Minnie.,

“These are real life situations which we take into consideration when advising our customers to make sensible decisions to maintain and protect their lifestyles as well as achieve their financial dreams and aspirations. Relevant cover, such as Liberty’s Lifestyle Protector – the most comprehensive and flexible solution – also ensures that the lives of loved ones can continue, even when customers are no longer able to assist,” he says.

Customers looking to protect their lifestyles should get in touch with an accredited Liberty Financial Adviser or Broker to understand the benefits of covering ones’ lifestyle and security needs.