A lot of banks have gotten smarter over the last two decades when it comes to using data and making most of it to drive intelligent decisions that get you top line growth, also bottom-line savings. In fact, banks were one of the first industries that pioneered use of data and analytics; though it was more to do with making sure we don’t lend imprudently. (Yes, this was a slight digression to risk)
Yet when it comes to marketing, plenty are still stuck in the rut of traditional campaign calendars and designing campaigns for specific products rather than for conversions across the customer journey. Product propensity models have been great. They have served an entire decade of bank marketers very well. But not anymore.
Today when it comes to customer expectations (which is the foundation of what drives customer experience and thus engagement) there is clearly a new normal. Not only do customers expect us to know them well (harnessing all the data – footprints they have left behind as they interacted with us across channels or on social media) they are also willing to trade such data for personalized relevant propositions. The data explosion that has engulfed the world also means that the share we have of the customer’s attention, as she is bombarded with messages on various channels from different B2C enterprises, is increasingly becoming infinitesimally small.
And so, sending multiple campaign messages with different product propositions to the same customer is not only costly relative to the returns (or lack thereof), it also pushes the customer towards disengagement owing to the irrelevancy of such engagement. Ditto, when we send the same campaign to many customers, when in reality they have different interests, needs and preferences.
How do we solve for this?
How do we make campaigns truly customer centric and so that every campaign touch is relevant and propositions are aligned to what the customer is looking for?
- Connecting the dots: for deeper understanding of the customer
Yes, it’s no surprise. The first step is data. As a bank, we are proficient in using customer demography, bureau and transaction data. But what about customer behaviour, channel interactions, social media and geo-location data that contain valuable signals on the customer’s immediate situation. Unifying this data and creating a big picture view that perpetually updates on real time basis is key.
- Identifying Most Relevant Product
Switching from product centric campaigns to customer centric ones also means having in place a mechanism to identify the product that the customer is going to find most relevant at any given point in time. In other words, a recommendation engine using AI. Note that “at any given point in time” implies that the recommendation engine harnesses the temporal real time behaviour data which has traces of what the customer is looking for or is interested in.
- Using the channel of Maximum engagement
Another foundational block that goes hand in hand with customer centricity in campaigns is a shift away from channel centric campaigns. Why optimize at a siloed channel level rather than maximizing conversions at a customer level? Using historical customer touch data to identify the channel of maximum engagement improves response and conversions.
Using personalization to drive relevancy in campaigns making them more customer centric, automating decisioning on most relevant product and doing this at scale can indeed be challenging. But then no one said that this can be accomplished in one shot. Personalized targeting necessarily needs a journey view. The ability to run automated relevant campaigns is built in an iterative way wherein the sophistication of data integration, recommendation engine and delivery mechanisms improves over a period of time.
Note that neither does this need a rip and replace of our existing marketing technology. One can leverage personalization experts either in-house or from partner AI firms to embed the recommendation engine within their marketing stack as well as to build in the add on pieces of data and channel integration.
Adopt personalization now. Place the customer where they belong, that is, at the heart of your marketing campaigns.
Product Head- BRIDGEpersona
Financial Services & Insurance
BRIDGEi2i Analytics Solution
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