Personal Recommendations for Banking Customers
This generation of consumers likes personalized services. They know that the data they share is being stored and used by companies. If companies adopt a pro-consumer attitude, their services would be valued more by the consumers. You can make or break a customer experience by the little things, like recommendations and notifications. Irrelevant messages will make your customers believe that you do not pay attention to their data. They might switch to your competitors because of the better curation in services they provide. In banking, the primary source of customer information lies in the transactions made. If you can analyze the transaction data, you can know a lot about your customers and send them personalized recommendations.?
What is a customer 360 overview??
A customer 360 overview is the experiential relationship an organization has with a customer. It helps you obtain a comprehensive view of a customer by leveraging information from various points in a customer's journey. 360-degree view is the past, present, and future of a consumer's relationship with an organization. It includes the history of their activities, the context in which they are performing transactions every day, and the prediction of their interests by studying the past and present.?
A customer 360 overview enables you to create a unified view of customer data and use the same channel to engage with them. This can be used to gain a competitive advantage. As mentioned before, customers expect banks to provide relevant communication along with personalized services. Communication is virtually inexpensive in terms of financial approach. But a lack of communication or miscommunication can cost you a lot. When a customer receives recommended services that are irrelevant to their needs, they lose trust in the organization. Hence, by providing relevant and targeted messages, you'll have an edge over your competitors.?
How to proceed with the approach??
The first step to any personal recommendation service is the gathering of data. For banks, the data is transactions. It includes card payments, card transactions, and transfers between customers. Collecting demographic and behavioral, along with social media involvements, or interactions with customer services can also be useful. By analyzing all this information, you can create an overall view of the customer. For instance, if you predict that the customer is going to buy a house soon, you can send them loan recommendations. This will create a personal relationship with the customer and give rise to more focused and engaging communication.?
Making a customer data platform?
A customer data platform acts as a physical representation of the customer's 360-view. It has 3 main features.?
Every relationship that has an individualistic touch to it is essentially good communication backed by data.?
?Benefits of a 360-degree view
Creating a lasting relationship with a customer is the goal of any bank. Using a robust and intelligent customer data platform ensures that various departments can combine the records and information about the customer, irrespective of the medium used. This will leave little room for errors.?
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When you have all the pieces of a customer's journey, you will get a clearer picture of how the customer might act. Patterns of transactions can inform you about the likelihood of a customer purchasing something, being dissatisfied, and so on. Using interaction history, you can map a specific outcome for every event.?
Data analytics simply isn't about data collection. It is the ability to know which data to look for. Beyond transactions, interactions with customer service, surveys, and feedback are a very useful inlet into a customer's behavior dynamics. It will provide you with the best insights about a customer.?
With the creation of a lasting business relationship, you create a strong customer experience. This can be a key differentiator for your bank. While choosing between two or more banks, a customer would choose a bank that provides a better service.?
You spend a good part of your finances on marketing and attracting customers. If you utilize the data from customer interactions and implement them into your campaign, they will become more successful. An intelligent and data-driven campaign will improve visibility to your customers and hence the money you put into your campaign will always reap results.?
What is the application of a customer 360 view??
The end goal of a 360-degree view of a customer is product recommendations. By using the 360-view, you can single out a customer based on their transactions and recommend them a product or service which is curated to their specific needs. The more data you've collected and analyzed about the customer, the more accurate your recommendations will be. For instance, if you know a customer is interested in traveling and you are already aware that they have two houses and two cars, you can recommend them products based on the predicted amount they will spend on traveling.?
Thus, a 360-degree view can help you find the right products for the right people. Banks are not like other companies, where the question of what a customer wants next can be easily answered. Even when you have all your resources streamlined, it is still difficult to analyze and predict from that information. A 360-degree view will come to your aid in such a situation. It not only uses information that is directly available at hand but also the less obvious data. Customer data is very impactful for the profit margins of a bank. Hence, using this model in the right way can give you many benefits.?
You can reach out to us on?[email protected] ?for any help in this area.
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