Banks are looking to embrace the power of advanced analytics and big data to gain insights and evaluate opportunities that will improve cross-selling, increase upselling, and enhance customer value. But to get there, banks must balance the external and internal actions that combine to deliver a seamless customer experience. Here are some strategies you should think about.
In a constantly connected mobile world where everything is at our fingertips, consumers have come to expect to receive things quickly, easily, and in the moment. Banks are exploring new opportunities to engage consumers online, via mobile devices, and with in-branch kiosks. Understanding the needs of today’s connected consumers and the new path-to-purchase across multiple touch points, banks can deliver more personalized products and services, and create unique customer experiences. These include real-time text and audio mining (voice ability to identify your mood), virtual agents, dynamic pricing, and context-sensitive offerings.
Banks need to become simpler with their customer interactions, and that’s where digital can be of greatest assistance. Financial organizations need to reexamine how they do business today by finding ways to leverage digital means and social media, and by improving the in-person banking experience. While the perfect recipe is the combination of it all, you need to choose where you want to focus first and then evolve from there.
For example, instant “on-the-go” rewards will improve loyalty, but they’ll also help to drive digital relationship management and penetration. Banks can also focus on geolocation and in-store incentives which will drive more foot traffic to the banks. Once you have customers in the branch, you can deliver personalized banking experiences that can create stickiness.
Digital banking is more than getting customers to use your online services or mobile banking or an in-store kiosk – it is a way to run your entire organization. Digitizing your entire value chain across product development, distribution, front and back office operations, marketing communication, and the entire customer experience is becoming essential to transforming into the bank of the future.
To get there, banks are looking at use cases such as customer insight – which is about understanding customer genome through sentiments – social media, and essential needs based on life-changing events. For example, a status change on a customer’s Facebook page such as a new baby, a wedding, or being awarded an exciting new job can signal a need for more appropriate kinds of support. These might entail additional banking products and services that can be offered proactively before the customer goes looking for them. But to get there will require actions such as credit analysis, shopping patterns, bank product or service usage, and lifetime value to determine the next best action and offers. These are all things that the digital bank can deliver.
Internal strategies should include use cases for customer marketing such as lead generation, segmentation, and campaign management, but also business strategy, risk management, and channel execution. All of these should be driven through the right digital and data analytics strategy.
By carefully balancing both your external and internal strategies, you can become trusted partners to your customers by giving them contextual recommendations that are relevant to each customer. This means delivering the right product, at the right time, at the right price, through the right channel. If you’d like to learn more, drop me a comment.