FinServ Goes (More) Predictive
Financial services marketers know that in order to stay competitive in retail banking, institutions need to become more profitable while increasing customer satisfaction and trust, reads the March 6 article in The Financial Brand, “Predictive Analytics is the Future of Financial Marketing.”
Banks had been using customer data for decades for its own needs, rather than those of the customer, writes Jim Marous, co-publisher of The Financial Brand and owner/publisher of the Digital Banking Report. Banks need to use predictive analytics to create personalized customer experiences, he says.
“The industry needs to move from using data to build great internal report of past events to using data to build great customer relationships and experiences based on future needs,” Marous says about putting the banking customer first.
Here’s how Marous suggests financial services marketers do that, adding insights from a report from Aite Group, entitled “Predictive Analytics: The Path to Competitive Differentiation”:
- Customers Care About Channels. Use the one they want. For instance, collect mobile usage data because: “Understanding how a consumer uses their mobile phone and their preferences of apps can be key in delivering the right solution through the right channel,” he advises. Looking at consumer ratings and reviews of banking apps can also help financial services marketers optimize mobile offerings.
- Consumers Talk on Social Media. Listen. “This can be a valuable source of insight into behaviors and life events,” he says.
- Ratings and Reviews Matter. (This is about more than social media.)
- How Are All Consumers Paying Their Bills? Not just through your institution. “Understanding who a consumer makes payments to, and how those payments are made, can provide valuable insights into how to serve the consumer with services that other organizations currently provide,” Marous says. “The mission hasn’t changed, even though the marketplace has … try to get an increased ‘share of wallet’ from the customer.”
- Where Do Your Customers Want to Be in 10 Years? This is where banks can offer “personal financial management,” instead of just products. It’s a long-term personal strategy instead of just a loan. “Understanding a consumer’s financial goals is one of the most important components of predictive analytics,” he says. “Without understanding where a customer wants to go financially, it is almost impossible to help them get there.”
- Location, Location, Location. This is a Realtor’s mantra, and now it’s that of bankers. Geolocation can get consumers in the door via mobile devices, local search, etc.
- Pay Attention to Current Events. Travel marketers are seeing the impact of President Donald Trump’s immigration policy, with the mayor of Philadelphia saying a conference canceled due to worries about getting attendees in and out of the country safely and reliably. If it were a banking conference, how would that impact financial services? Does the weather impact the institution? Regulatory reform? How do major events impact customers and their financial goals? How can FinServ marketers help?
What do you think, marketers? Is Marous onto something?
Please respond in the comments section below.