Don’t Let Poor Use of Data Poison Your Financial Institution’s Brand
In this digital age, consumers are constantly exposed to thousands of advertising messages and similar-appearing brands each day – making it extremely important that financial institutions are going above and beyond to promote a brand that stands out within the space and among their competitors. To gain and retain customers, financial institutions should be providing a digital, convenient and streamlined service at every chance that makes the consumer’s life easier. Ultimately, an institution’s success in positioning itself as a credible resource for consumers, while also establishing profitable growth, all comes down to one factor: data analytics.
According to Financial Brand, “two thirds of consumers say they are extremely or somewhat likely to switch brands if they are treated like a number,” meaning that institutions not effectively using data analytics to reach the full potential of serving its customers will lose them to other financial institutions offering a more personable, customized experience. When properly implementing data analytics into your core platform and using them to the fullest, your financial institution’s brand can be leveraged to improve industry recognition, become a trusted resource and establish value among your customers.
Here are some factors to consider when evaluating your current data analytics solution:
Why Are Data Analytics Important?
Capgemini recently reported that banks applying analytics to consumer data have seen a four-percentage point lead in market share over banks that do not – correlating that financial institutions must implement a data analytics solution to execute efficient and effective marketing campaigns. Consumer data is an institution’s most valuable asset, so those that use data analytics across all divisions gain insights into additional marketing opportunities as well.
Implementing a core system that constantly collects data across product lines, channels and business departments ensures financial institutions with an accurate and comprehensive view of each individual customer and their specific financial needs. Such specific data on each customer allows financial institutions to cater to their unique and individual financial needs, leaving customers to feel valued and cared for. This helps banks and credit unions establish a trustworthy, credible brand.
What Can You Do With Data Analytics?
The use of data analytics allows financial institutions to examine and compare data sets from similar portfolios, leading to more sound calculations to identify different customers’ individual financial preferences. With this type of data, banks and credit unions can offer tailored marketing offers to specific customers or members that better fit their financial needs.
When financial institutions are able to offer personalized products and services, customers can receive relevant messages based on the combination of data collected and predictive analytics. This leads to an improved experience in which the financial institution is valued as a partner in achieving financial goals, rather than a roadblock to success. A happy customer that feels valued and understood will stay loyal to their brand through all financial seasons.
How Can Your Institution Use Data Analytics To Gain a Competitive Advantage?
With data analytics, institutions gain insights to the customer’s banking actions and preferences. The analytics then allows the marketing team to follow up with more accurate decisions in terms of next-best offers for cross-selling and up-selling, as opposed to guesswork. This is achieved by leveraging gathered data and predictive analytics to develop algorithms that identify which customers might be more willing to purchase additional services.
Rather than sending a templated email blast to every contact that promotes one of the bank’s least-used or less popular services, the bank can spend time evaluating current programs and generating campaigns to increase awareness for less-used products, whether that may be a niche credit product or certain types of investment accounts. Banks can then direct the campaign to only be sent to the contacts that have yet to purchase the product and will likely gain the most value from said product. Customers will appreciate the customized offers geared toward their needs, continuing to improve the overall trust and credibility of the bank’s brand.
The collection and use of data is only proving to become more critical in determining the success of a financial institution’s profitability and ability to satisfy customers. Financial institutions that enlist a successful marketing platform built upon a foundation of strong data analytics that focuses on areas of growth and improvement for customers will establish a customer-centric, credible and trusted brand. Finding the right data analytics tool for acquiring your institution’s goals will drive personalized product and service offerings, enabling institutions to gain a competitive advantage, develop industry recognition and create a brand strong enough to withstand any financial economy.
Posted on Friday, November 16, 2018 at 1:30 PM
by Baker Hill