Of late banks, and specially the retail banking division has been facing stiff challenge in not only retaining their customer base, but also maximizing the revenue and profitability. More and more customers have started using new age technology like smartphones, tablets and are accessing and sharing a lot of information on social media. Due to this abundance of information, customers’ stickiness to a bank has come down and they are more than ever willing to shift to other banks offering better products and services. The solution to this problem lies in identifying and analyzing customer data from various sources that can help banks:
The available customer data, which banks can analyze, are in the following forms:
Banks can analyze these voluminous data generated from several sources using models based on various analytical tools. These models not only help in increasing the effectiveness of various ongoing and future campaigns by banks, but also maximize the customer’s wallet share. Rather than offering products and services that they would like to sell, banks can offer customized and real time offers based on knowledge acquired from analysis of customer’s data and applying it effectively. Banks can take relevant and sustainable actions at the right time, at the right place.
In a series of blogs, with the help of relevant examples, we will try to understand how analytics can help banks maximize effectiveness of their campaigns, while increasing a customer’s wallet share during different phases of the customer’s lifecycle. The customer’s lifecycle for the purpose of this discussion can be broadly classified as follows:
The role of analytics in retail banking cannot be underestimated and banks need to take a structured approach to effectively use it. This can help them not only in meeting their short term objectives of selling the right product at the right time to the right customer, but also other long term strategic objectives like focusing only on a particular set of customers, business areas or a product mix. What do you think? Please share your thoughts on this blog.