I can buy apparel as many times as google display ad or the banner in my social media shows me a top too lovely to refuse or a discount too tempting to resist. This can happen many times a year.
When it comes to targeting these ads however, treating financial products such as a car loan or an investment plan the same as clothing, shoes or accessories is well, let’s say not very smart. But then that’s exactly what you are doing when you are deploying personalization engines that are rockstars in personalizing, but really only for retail businesses
Let’s look at how buying products in the retail business is fundamentally different from buying banking or financial products from a customer stand point.
|Retail business||Banking business|
|Products are bought often, many times a year||Products are bought only once in 3 to 5 years|
|Need for products can be created by making the offer attractive because come on, it doesn’t hurt to have one more shirt||Need for products cannot be created. Need for financial products comes from life stage, spending habit and customer’s contextual situation|
|Products are recommended by looking at what ‘others who bought the same, also bought’||Such pairing of SKUs does not make sense when it comes to financial products|
|Personalized product recommendation is hinged on purchase patterns and browsing behaviour||Any personalized product recommendation needs to factor in customer’s financial profile, bureau information and all customer touchpoint interactions across bank’s channels|
|Retail business are transactional, focusing primarily on driving transactions and not so much building a long-term relationship||Banks inherently need to focus on making customer engagement meaningful to ensure that customers are retained for the long haul|
And so, while deploying a personalization engine that might look like the market leader (in an absolute sense) checks the box on personalization, true personalization from a financial products standpoint is a different ballgame.
When it comes to personalizing marketing propositions, it’s important to choose a solution that:
- is built for the banking and financial services business – understands the industry
- understands and leverages the wealth of data that a banking customer generates
- adapts dynamically the most relevant proposition for the customer using all signals from customer interaction information
Achieving relevance in your marketing propositions is key. It is the only way that customers will find any engagement that your bank does meaningful.
Going a step further and getting to immediate relevance, that is the ability to dynamically contextualize the marketing proposition is what will put you on the map. When this is done over a period of time, the customer starts seeing your bank as a trusted advisor and turns to you for his future financial needs.
And there, you have grown revenue from this customer, and he is here to stay for life. Not to mention, the return on marketing spend improves as well. And so, you see, there is virtually no reason left as to why bank marketers should continue to operate at a subpar level relying on off the shelf made-for-retailers personalization engines.
Product Head- BRIDGEpersona
Financial Services & Insurance
BRIDGEi2i Analytics Solution
Talk to us