Now more than ever, banking customers are seeking a more personalized experience. In fact, according to a recent Ernst & Young report, 70 percent of customers surveyed worldwide said they would supply their bank with more information in exchange for better, more personalized service. It’s up to banks to best leverage that data and make sure they aren’t hurting their relationship by using it incorrectly or not using it when to strengthen relationships.
So, how should banks go about doing this? The first step is to create a holistic or 360 degree view of each customer. Next, the firm must evaluate the accuracy and completeness of this view. Are there significant gaps in terms of customer understanding: account holdings, transaction activity, preferences, or past communications? How reliable are the data elements? This data assessment is best done by a cross functional team familiar with the bank’s data sources as well as how better customer data could drive better customer experiences and more valuable relationships. Once the bank has a solid understanding of the strengths and weaknesses of its customer data assets, the cross functional team should determine which missing or unusable data elements, if made available could significantly improve relationship management activities. Of these deficiencies, the team should then determine which data gaps are easiest to address and develop an approach to gather and use this data to create value. Proving and sharing the success of this approach is key to creating a data driven, customer centric culture.
Since consumers are demanding faster, personalized and more relevant interactions across all banking channels; financial institutions need to keep up to remain competitive. Here are some data solutions banks should consider:
- Real-time decisioning: Enables an organization to grab information in real-time from multiple data sources and use that information to make recommendations without building a massive data warehouse.
- Interaction guidance: Collects new information as it comes in from the customers, further enabling banks to deliver a personalized experience.
- Location intelligence: Know where the customer is to better personalize interactions. For example, an interaction will be brief when the customer is at work versus at home.
The ability to leverage data to build a 360 view of the customer is crucial to creating value within an organization’s distribution network. On Wednesday, November 6 at 11:45 a.m. MT, I will join BAI’s Innovation Stage panel to discuss leveraging data to meet consumer needs in an omni-channel environment. This panel will bring together industry leaders who will share insights into the technology, trends and tools that will enable your organization to identify and use the right kinds of data to meet your customers’ ever evolving needs. Don’t miss out on this opportunity to make sure your data is enhancing – not hurting – the customer experience.