Citizen's Bank Target Audience Report

8/10/2019 Citizen's Bank Target Audience Report

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Target Audience Report

Executive Summary

The target audience for this campaign is farmers who need agriculture-focused loans

who live near Citizens Bank & Trust rural branch locations in Northern Missouri and Eastern

Kansas. These farmers believe that their profession is a lifestyle and that it isnt for everyone.

Farming is in their blood and they are very proud of the fact that they provide the food for the

rest of the country.

The target lives in an area that is reachable by an agriculture loan sales representative

from Citizens Bank and Trust and is close enough to a branch location where they can

conveniently use Citizens banking services. The typicalfarmer in our target area is male, older

than 40 and operates a farm larger than 100 acres. They are very proud of their profession and

appreciate anyone who understands it and wants to talk about it.

When it comes to a banking relationship, these farmers tend to stay with the same bank

for a very long time and they value a partnership with their loan representative. They want to

work with a bank that understands their situation and works with them, rather than one that

just looks at the raw numbers and ends a relationship if profits are too low. Trust is a key factor

in retaining the targets business.

Demographic Characteristics

To define the demographic characteristics of our target, were combining national

surveys with our local research and observations.

A study done by Successful Farming in April 2013 describes a typical farmer as being

between the ages of 40-64 with a majority of 60%, while 35% are 65 or older, and only 5% are


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under 40. ("Farmers Use of Media 2013.") The average farm in the united states is 439 acres

and generates about $150,000 in sales yearly. (USDA Census of Agriculture.)

We conducted an online survey, which consisted of general agriculture questions, and several

describe demographic material. Though our survey is far from statistically accurate, our results compare

with the national survey, putting 56% of respondents age 46 or above.

Fig. 1. Survey Farmers

(Early Owl Advertising)

Psychographic Characteristics

First and foremost, farmers are proud of their profession and their work. They like to


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show their farms, but mostly they like to talk about their farms, and farming in general. Its

understandable, given that so many of the farmers we studied -- and from national studies as

well -- tend to come from a long line of family farming.

Being a farmer is a stressful job. There are many variables in their job that causes this

stress such as the unpredictability of the weather and the seasons, animals getting sick,

markets fluctuating, and equipment breaking down. Despite these stresses farmers try to stay

optimistic about their future. Farmers tend have tight communities of friends and neighbors

who work together when others are in need. ("Farmer personality, constant stress among risk

factors.")

Farmers typically believe that to be successful in farming it is important to have a strong

and supportive family, and be able to plan for changes. They also believe that to be successful

they need to be confident in their abilities and be constantly seeking new farming ideas.

("Attitudes and Family Farm Business Performance.")

We were able to gain more insight into farmers values and their personalities by

conducting a focus group of about 6 local farmers where we asked them some general

questions about their occupation. These answers cant be descriptive of the entire farming

population but it provided some clues as to who our target is. The focus group showed that

farmers are very proud of their profession. This group described their work as fulfilling and they

like being their own boss. They were disappointed by the growing disconnect between the

farming community and the rest of the world. They want to be appreciated for the food and

fuel that they grow and cultivate for the rest of the United States. The farmers in the focus

group had a wide array of hobbies including riding horses, going fishing, playing basketball, and


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even playing mobile games like Candy Crush. These farmers continued to say that they

frequently check weather on multiple devices, and receive and use email every day. Most of

them also said that they use text alerts on their phones, which sometimes werent

smartphones, for weather and market information. They also like to keep updated on new

farming techniques and information on internet forums and websites, as well as farm specific

magazines.

Geographic Target

According to Citizens Bank, the geographic region where the farmers live that Citizens

would like to reach live North of Kansas City all the way up to the Iowa border. The geographic

area ranges from eastern Kansas all the way over to the Macon and Moberly area of Missouri.

This geographic area is likely due to Citizens Bank and Trust physical locations which are

scattered throughout this general area and can therefore provide a close location for any

farmer.

Branch locations of Citizens Bank and Trust that are in a location suitable for our target

include locations in the towns of Boonville, Brookfield, Burlington Junction, Chillicothe, King

City, Macon, Maryville, Moberly, Ravenwood, St. Joseph, Trenton, Kearney, and Smithville.

David Deshon, one of the main agriculture loan representatives, has a territory that roughly

covers St. Joseph and the surrounding area. He tries to find potential farmers as far north as the

Iowa border and works into Kansas slightly. Staci Bakers territory covers from Trenton to as far

south as Sedalia, and from Macon and Moberly all the way to Kansas City. The rural area

surrounding these locations where they find these farmers and not in the city limits.


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Fig. 2. Geographic territory for salesmen

Farm Operations

As of the 2007 Census, Missouri has 107,825 principal farm operators. Of those operators,

95,071, or 88% of them are male. 69,724, or 41% of them have a different occupation that serves as

their primary source of income. The largest age group, making up 26% of the Missouri farmer

population, is between 55-64. The next largest group, making up 24% of the farming population, is

between 45 and 54 years of age. 444 of Missouri farms, as of 2007, are operated by a Hispanic principal

operator. 397 principal farm operators are of Native American descent. 228 are Asian. 179 are African

American. (2007 CensusState Data) A typical farmer in the northern region of Missouri will farm any


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combination of soybeans, livestock, or corn.

Nationally, 36% of farmers have a farm that is under 500 acres, while 22% have a farm

between 500-999 acres, and 42% have 1,000 acres or more. ("Farmers Use of Media 2013.")

Fig. 3. Size of Farm

("Farmers Use of Media 2013.")

Farmers live in the country, outside of any city, and this is directly due to the fact that

they need very large plots of land to grow their crop, and raise their livestock. Because of the

large plots of land needed to farm, these farmers are very spread out and distanced from one

another. This makes it especially difficult to reach a large number of farmers with a small

amount of advertising. Despite this these farmers still need to go to central locations for basic


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needs such as groceries, banking, and purchasing grain, livestock, and equipment at something

like an MFA store.

Most farmers or ranchers are likely to need a loan. Whether this loan be an operating

loan, a real estate loan, or an equipment loan, farmers will probably find themselves needing

substantial funds to start, expand, and maintain a farm or ranch. There are multiple reasons the

target may need an agricultural loan from Citizens Bank and Trust. Some farmers may be just

starting out and looking to buy or lease land or livestock. Others may need to upgrade

equipment like tractors, livestock, irrigation pipes, or other equipment. Others, still, are simply

looking to expand current property. And finally, some may be using a loan to recover from a

natural disaster, such as a drought or flooding that have resulted in damaged crops and a

season of low production.(Farm Credit Network)

When studying net income on farms based on farm age, it appears that the most recent

farms are reporting the highest expenses in relation to income. Only 33% of farms started in the

past 10 years are reporting net income (USDA Census of Agriculture). It seems that these

newer farms are most in need of loans to sustain current business and continue to pay off the

expenses of starting the farm. In almost all of the counties in Missouri, over 60% of farmland is

owned by the operator. Northern Missouri shows slightly higher rented or leased farms at

about 30-40% compared to Southern Missouri, which rents or leases under 25% of the land

(USDA Census of Agriculture).

In the online survey that was conducted by our class, we asked about category of farms. Thirty-

nine said they operate a livestock farm, 39 said they grow soy beans, 38 said they grow corn, and only 5

had other farm products. These farms probably grow some combination of these crops. We then asked


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what size of farm they live on. 4 said that they live on a farm between 0-50 acres, 8 live on a

farm between 51 and 200 acres, and 28 live on a farm 201 acres and larger.




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What a farmer wants in a bank

Farmers and ranchers tend to be very loyal to the bank that they are with and according

to the client meeting 98% of all ag loan customers with Citizens Bank stay with the bank that

they are with and do not change. These farmers expect the same kind of loyalty from the banks

as well, and consider a relationship with their banker to be very important aspect of their

banking situation. The farmers from our focus group feel better about their bank if they are

knowledgeable about the farming industry and understand the situations that they are facing.

The focus group continued to show a trend of farmers not liking big banks that only see them

and their farms as numbers and only caring about the cash flow, not about the relationship.


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These farmers tend to not have a strong opinion of their banker one way or another.

They generally think that their banker is just another person doing their job. Citizens Bank

believes that building a relationship between the farmer and the banker is better achieved

when the banker actually visits the farmer on his farm, but our focus group showed that this

practice isnt really typical and they might think that it would be strange to see their banker

driving to their farm.

In our online survey, consisting of 53 responses from local farmers, we asked what best

describes how a farmer feels when they see their banker driving toward their house. 19

responders felt indifferent or worried about their banker approaching, 20 farmers feel that the

banker would be there to offer a good deal or they would think of it to be a pleasant surprise,

and 10 farmers said that their banker has never visited their home. We also asked when they

usually start looking for agriculture loan options and the majority answered that they start looking from

January to March, while others start looking between November and December.


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Also in our survey we asked farmers what they value most about farm loans and 42 said

that they value low interest rates, 36 said that they value knowing and trusting their banker, 18

said that they value that the application process for a loan is quick and convenient, 15 said that

they value that their bank is active and contributes to the community, and 3 valued that their

bank offered loan incentives like gifts.


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In the same survey we asked the farmers how they like to be contacted by their banks.

15 prefer to be contacted in person, 24 prefer to be contacted by phone call, 7 prefer mail, and

7 prefer email. Then we asked how important their banker is in their operation based on a one

to five scale, one being not important at all and five being very important. 3 rated their banker

as a one and not important at all, 7 rated their banker as a 2, 12 rated their banker as a 3, 10

rated their banker as a 4, and 19 rated their banker as a 5 and being very important in their

farming operation.


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Farmer Media Preferences

According to a national study done by the National Association of Farm Broadcasting,

traditional media, like magazines, radio and tv, are still the most widely sources of information for

farmers. These farmers are using these media sources to check the weather and keep up to date on

farm market reports. This report, which is probably slightly biased toward radio, says that farmers prefer

radio, tv, and internet for their daily sources of information. Farm related magazines are likely lower due

to the fact that they only come out once a month. ("NAFB Farm Media Usage Update 2011.")

Farmers media usage follows normal trends despite their rural location. Most farmers have

access to high speed internet and use it for checking markets and forums regarding their farming


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operation. Younger farmers below the age of 50 have begun to embrace smart phones and tablets for

use with checking weather, checking email, and for farming apps, while older farmers tend to have non-

smartphones and use the internet, as well as text alerts to check those things. Farmers are beginning to

use social media and their mobile phones more. In a study done in 2013 it was found that nearly 25% of

farmers use Facebook on their smartphone while using farm equipment. Nearly 75% of farmers

interviewed use their smartphones to perform simpler tasks like talking on the phone, checking the

weather, or checking email. About 40% of the farmers interviewed said that they use their smartphones

to research farm equipment while on the job. ("FastLine Study:25% Of Large Acre Farmers Using Social

Media During Operations.")

In our online survey taken by farmers from around the area we asked about what media

activities were common for them; there were 53 survey takers. A large majority said that they

frequently check email, check the weather on a smartphone, listen to the radio, watch local tv,

and read local newspapers. Few of the responders said that they frequently read or post in

online discussion boards, play games on a smartphone, or play games in Facebook.


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Focus Group Report:

The information gathered from the focus group held February 12th helped the class to

better understand the lifestyles of farmers. There were five participants in our focus group

panel, four male farmers and a female rancher. There was only one male over the age of 50, as

well as one woman in the focus group. Three of the participants were middle aged men in their

mid 40s.

When the participants were asked what they loved most about being a farmer a

majority of them declared that being their own boss was the best. When going down the line to


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ask each individual their answer to this question, words like freedom, constantly changing and

no two days are the same continued to come up. Many people called it a lifestyle, and one

participant said that farming is something you can always come back to. Why people in the city

can adapt and learn farm life, its hard. On the other hand, a farmer can adapt to city work fairly

quickly if he needs, and can still come home to the farm and work with no problem. This same

question had followups that included the best time of year and worst aspects of farming. The

overwhelming response to best time of year was spring. Some farmers said because of the

calves coming into the world, and the new life that forms there, while other farmers focused on

the rewards you get each spring and included harvest as their favorite time of year. When

asked about the worst aspects of farming, there were two distinct negatives. Weather was the

first, and probably the most loudly stated problem. The biggest challenge of being a farmer

relates to not being able to control the weather. Many of the farmers grumbled that you learn

to live by checking the weather, but their was a clear groan from everyone on this topic. The

other challenge mentioned was the constantly changing market, The market hasbeen good

these past few years but expenses dont go down when prices do.

When asked to describe farming in one word there were three that stood out;

challenging, rewarding, and fulfilling. Along with words like these were phrases like, its in your

blood, and you have to WANT to do it. These all present the dedication to the job that each

farmer has. Going along with the true lifestyle that operating a farm is, when asked what their

greatest tool was, all the farmers agreed on two tools. The first tool is the farmer themselves.

One farmer said, I work for a lunatic, and Im that lunatic. This quote is great, and goes along

with the universal feeling of the focus group, that if you want it done, youve got to get up and


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do it. The other tool mentioned by the focus group was their staff. For many of these farmers

the staff is small, one or two hands that help with feeding, harvesting or what ever may be

needed. There was one participant who said he would be lost without his son. Unfortunately

other participants, like many other farmers, did not have sons or daughters that wanted to

work on the farm. One said at one point that he loved his children, but if they didnt want to be

on the farm he didnt want them there. He followed this up by saying thatyou have to want to

be on the farm to be successful.

Things got interesting when questions started to focus on bankers. When the panel was

asked how they felt about their banker, several had strong opinions. One of the younger men

quickly responded, the less I have to see him the better. This was followed by a chuckle and

the explanation that he knew he was doing well when he didnt have to see him. There were

several others who added to this idea that seeing your banker on your farm could be

worrisome. One participant said, You are just a number to a large bank. A handshake doesnt

mean anything now. This discussion was followed up by a quick follow up question; What do

you want from your bank? The answer seemed unanimous that farmers just want

understanding from their banker. They need someone who knows the farm and what it takes to

run a farm. This makes them feel secure in the bank and more likely to use the bank in the

future. None of the farmers seemed taken with the idea that their bankers could bring gifts on

house calls. Several mentioned that it would feel like a bribe, and they were offput by that idea.

One participant also commented that, If theyre giving me something, Im usually paying for it

somewhere else.

All of the participants agreed that it would take more than low numbers to persuade


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them to change banks. They all preferred the hometown handshake to a large bank, where you

are just another number. They all stressed how a personal relationship to not only your banker,

but your bank was something of value to farmers. Participants said they want to know that

their banker is knowledgeable in the farming industry. Most of the farmers also commented

that all big banks are the same. All of the participants havent changed banks, and have been

with their bankers for a long time. One participant mentioned that they was currently looking

to start their own farm, and was looking at banks currently. They stressed that knowing your

bank is an ag bank means a whole lot to a farmer.

The panel seemed to all have similar answers when asked about attending community

events. Everyone seemed to be involved in their community and a few mentioned a dinner that

their bank does with a grain facility that they attended. They also mentioned they found some

value in the informational presentations that are usually held during these dinners. The panel

as a whole seemed to value keeping themselves informed about the current economic and

technological elements of the farming industry.

When we asked how the panel felt when they saw their banker coming down their

drive, they all reacted somewhat negatively. They once again mentioned how it was worrisome

if they were there. One participant also mentioned if the bankers there, theyre probably

counting cattle. There seems to be a negative notion to the idea of the banker coming to you

for the first visit. The entire panel said they preferred going to the banker, rather than the

banker approaching them at home. They mentioned that it was less threatening, and they know

what they want when they go to the bank.

The panel was asked if they used smartphones or tablets while on the farm. Most of the


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farmers didnt have smartphones, and the ones who did said they use it to kill time when they

are waiting on the farm. One mentioned that he frequently played Candy Crush while he waited

for grain. The rest of the panel seemed in agreement that email was something they checked

often and relied on throughout the day. Several also mentioned they frequently used their

phones to check the weather, and mentioned apps like weatherchannel, and accuweather.

Overall the loudest message that can be taken from this focus panel was that farmers want to

be understood. All of the panelists agreed that they need a knowledgeable banker that they can

trust, to understand how a farm operates, and what it takes to make it operate.


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Target Summary Sheet:

Demographics

Primarily males age 40-64 secondary caucasian male age 65+

Average farm size is 439 acres

Average farm sales is $150,000 yearly

Psychographics

Very proud of their profession and lifestyle

Families and traditions are important

Trust in banker is Key

Their banker must be knowledgeable of the farming industry

Are very loyal to their banks, and expect that loyalty in return

Geographic area

Lives in Northern Missouri (Sedalia up to Iowa border, as far east as Macon)

Live in small communities, primarily rural areas

Farm Operation

Farming soybean, livestock or corn Average yearly sales are $250,000 or less

Looking for startup or expansion ag loans

Farming is the primary occupation

Average farm production costs are $109,359 each year

Media Preferences

Heavy users of traditional media (TV, Radio, Magazines, Newspapers)

Frequently check weather on apps and online throughout the day


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Works Cited:

"Attitudes and Family Farm Business Performance."AgEconSearch. International Farm

Management Congress. Web.

.

Early Owl Advertising. Survey Farmers. Survey. SurveyFarmers.com. February 2014. Web

Farm Credit Network. FAQs. 2014. 20 January 2014

.

"Farmers Use of Media 2013." Successful Farming. Successful Farming, n.d. Web.

"FastLine Study:25% Of Large Acre Farmers Using Social Media During Operations." FastLine., 6

Aug 2013. Web. 22 Jan 2014. .

"Farmer personality, constant stress among risk factors."Agri-View. Agri-View, 04 Apr 2013.

Web. 5 Mar 2014. .

"NAFB Farm Media Usage Update 2011." National Association of Farm Broadcasters. National

Association of Farm Broadcasting, n.d. Web. 5 Mar 2014.

"Personal characteristics of farm families that have strong farming relationships." Midwest Producer.

Midwest Producer, 07 Mar 2012. Web.


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USDA Census of Agriculture. Agcensus.usda.gov. 2007. Web. 21 Jan. 2014.

http://www.agcensus.usda.gov/Publications/2007/Online_Highlights/Fact_Sheets/Practice

s/
http://www.agcensus.usda.gov/Publications/2007/Online_Highlights/Fact_Sheets/Practices/http://www.agcensus.usda.gov/Publications/2007/Online_Highlights/Fact_Sheets/Practices/http://www.agcensus.usda.gov/Publications/2007/Online_Highlights/Fact_Sheets/Practices/http://www.agcensus.usda.gov/Publications/2007/Online_Highlights/Fact_Sheets/Practices/http://www.agcensus.usda.gov/Publications/2007/Online_Highlights/Fact_Sheets/Practices/

Documents

Citizen's Bank Target Audience Report