By using data to drive their decision making, banks and other financial institutions can improve their customer journey, sell more products and retain -- and expand -- their customer base.
Key to this is the tracking and analysis of experiential and live marketing data: information tracked face-to-face, including in-branch, at branch-opening events, at trade shows and during community outreach events, as well as before and after each activation.
Most businesses, including banks, are already tracking a huge amount of data online; automated systems can perform this function automatically. However, data tracked online often only reveals what a customer has done -- they have opened an account, made a purchase or requested information on a new product.
The what is good, but a why is better. The increased effort necessary to track data from face-to-face interactions is worth the investment because it provides a greater level of insight into what the customer is thinking. This information can then be used to help banks predict what a customer is going to do next, rather than just seeing what they have done after the fact.
Data that enables banks to be proactive rather than reactive is becoming increasingly important. Deloitte reports that just 44 percent of customers trust their financial services provider, and challenger banks and fintechs are increasing the level of competition banks face. Live marketing and face-to-face data tracking are essential tools that can help financial institutions retain their most important competitive advantages: their customer base and reputation.
The first step to using this data is to analyze the touchpoints customers have with their bank. For example, at a new store opening, there may be several obvious touchpoints, such as the customer's initial welcome at the door and subsequent conversations with members of staff including a request for information and actions such as opening an account.
The data tracked should be actionable and result in different actions for different customers. For example, an individual attending the opening who expressed interest but did not open an account might be followed up with a phone call and some information encouraging them to open an account.
However, an individual of high standing in the community might require a different response. The manager may call them personally with the intention of striking up a good relationship, rather than using a more "salesy" approach.
In its whitepaper "Big Data in Banking For Marketers," financial research firm Evry reports how Bank Austria reduced customer churn. After studying its customer lifecycle, the bank was able to increase customer retention by helping branch staff track vital data on customer behavior.
By tracking their interactions, staff members were able to spot customers who were likely to consider canceling a product in the near future. The team would then take appropriate steps to correct the problem and encourage the customer to renew. Because the team had tracked their interactions, they had all the information they needed to take action.
Some executives are reluctant to embrace big data and machine learning, concerned that the new machines and technologies could replace them.
This reaction is understandable, but incorrect; new technologies will free up executives to play a vital role in delivering data-driven insights and decisions. By embracing big data strategies and implementing them effectively, executives will only increase their value to the organization.
VB Insights report that 80% of users who embraced marketing technology saw their leads increase, and 77% saw conversions increase; far from doing themselves out of a job, these executives are building both their own reputation and that of their company.
