Driving Customer-Centric Engagement in the Year of COVID

Every leader is asked at some point in their career, “What ideas do you have to increase revenue and profitability?” This is difficult in a normal year, but we are enduring a time that is far from normal. The banking industry continues to lag behind most other sectors in the use of data and advanced analytics in marketing¹, and as a result, Financial Institutions are often left struggling to deliver personalized customer engagement due to a lack of digital maturity.   

Consumers Want Personalization

The COVID-19 pandemic accelerated the shift to digital channels faster than anyone predicted, leaving Financial Institutions to adapt the traditional brick-and-mortar banking model in real-time. Three in five consumers say Financial Institutions are failing to keep up with their needs². In response, this presents an opportunity for institutions to quickly react to their customers’ utilization of more digital platforms and engage with them using personalization and data analytics.
 
Hesitation in engaging customers can equal lost revenue and pose a significant risk to plummeting market share. Capgemini research shows that banks that apply analytics to customer data have a 4-percentage point lead in market share over banks that do not³. Every budget dollar, now more than ever, needs to yield the maximum revenue. Consider the following when earmarking 2021 budget dollars and working through your budget cycle:
 

• Is my Financial Institution making strategic decisions based on customer insights?

• How can your FI take more Share of Wallet?

• Do you have a plan to increase digital presence and prevent attrition?

• Do I know what competitive products my customers are also engaging with?

 
Many financial institutions struggle to collect, aggregate, and most importantly, make use of the data they possess. Don’t let your assets be disrupted by another Financial Institution because you don’t have a customer-centric experience strategy.  

This customer-centric strategy should be driven by your customer data, powered by their transactional behavior. When you understand your customers’ stories, business becomes personal again. Segmint provides usable data and customer insights powered by our proprietary Key Lifestyle Indicators® (KLIs) that help you understand the biggest opportunities with your customers and deliver the services and conveniences that matter most.

Do you know your customer’s evolving life story?

Meet Katie. To Segmint, Katie is an anonymous ID. This is to protect her data across all channels. As Katie’s life changes, her KLIs will automatically update to maintain an accurate and current customer view enabling financial marketers to deliver the most personalized and relevant message to grow this customer loyalty.

The COVID-19 pandemic forced customers like Katie to shift behaviors, leaving marketers scrambling for ways to re-engage. Today, most banks learn that they’ve lost a client only after the final decision has been made and it’s too late to make a difference. According to Accenture, attrition rates in the banking industry hover around 11%, and the annual churn rates on new customers are roughly in the 20-25% range during the first year⁴ — half of which don’t make it past the first 90 days after opening their accounts.  Many institutions are incurring costs of $300 or more to acquire a new customer⁵. 

Financial Institutions of all sizes are decreasing their attrition rates by predicting which account holders are leaving in the next 30 days. Segmint’s KLIs are the foundation of our attrition model.  KLIs are cleansed and categorized data tags that identify with a high degree of accuracy the customers that may be planning to exit your institution. This predictive process removes bias by letting the data dictate the variables that we should be tracking to identify at risk account holders while prioritizing profitability. 

Enter your secret weapon

Segmint’s industry-leading insights platform leverages payment and transaction data to create a real-time, anonymized story for each customer, allowing your institution to deliver personalized marketing messages. Discover patterns of banking behaviors and transaction spend that drive strategic decisions, solidify customer relationships, and unlock hidden profit opportunities.

Sources:
¹The Financial Brand https://thefinancialbrand.com/98826/digital-banking-report-financial-marketing-ai-trends/
²Forbes.com https://www.forbes.com/sites/laurashin/2016/10/18/survey-on-consumer-attitudes-toward-fintech-spells-trouble-for-banks/#5fc417634b5c
³Capgemini Consulting - Big Data Alchemy: How can Banks Maximize the Value of their Customer Data?
https://www.capgemini.com/consulting-se/wp-content/uploads/sites/38/2017/08/big-data-customer-analytics-in-banks_0_0.pdf
⁴Financial Brand, Plus Those Leaks: Stop Attrition from Stalling Your Growth Strategy; https://thefinancialbrand.com/68371/banking-customer-acquisition-attrition-growth-strategy/
⁵Google Ads Benchmarks for YOUR Industry [Updated!] https://www.wordstream.com/blog/ws/2016/02/29/google-adwords-industry-benchmarks