In a hyper-competitive financial industry, banks, in their never ending battle for the consumer’s wallet, want access to customer’s data before the competitors get hold of the information. This is, however, the usual approach not just in banking but in any other industry as well, but now, there’s a new normal. Today, banks want to act upon data even before the customer knows what they want!
The switch in attitude is primarily due to the rapid changes in consumer behaviour, which has dramatically changed the dynamics of banking in the last few years. In recent times, understanding customer behavioural pattern is turning out to be particularly important for banks as the new breed of customers want banking services delivered in a way that is convenient for them.
Unlike traditional customers, the new generation doesn’t like time barriers, they won’t stand in lines, and they don’t take a minute to shift over to a different bank that offers them the comfort they desire.
Banking Customers and Multi-Channel Touchpoints
Industry analysts believe, the introduction of multiple customer touch-points over the last decade and its array of categories are drastically fuelling the changes in customer behaviour.
While earlier, the bank’s branch was the only customer touch-point, it is hardly the case today. Over the years the gap between the bank and its customers has been bridged by a series of non-traditional touchpoints, such as the ATMs, IVR systems, the Internet, mobile, social media, and the point of sales (PoS).
Challenged by the rising Fintech threat, banks have fortunately started cultivating their customer’s behavioural shifts by deploying a variety of innovative tools.
Now with the advent of non-traditional multi-channels, banks have a deeper insight into the customer’s banking trends, which is enabling the development of personalized products that are in line with their customer’s demands.
Leveraging Analytics in Understanding the Behaviour of Multi-Channel Banking Customers
The introduction of technology and tools in banking, especially advanced analytics, is offering banks the power to analyse their new and existing customers like never before.
By leveraging analytics around their customer data, banks can determine the scale of customer satisfaction while looking at their usage trends and service history across all channels. This precautionary action solves critical issues, preventing customers from switching over to other banks.
Moreover, the collected data can be used to run prescriptive analytics programs to design customer centric services alongside the existing product portfolio. This enables the bank to proactively serve their customers in a better way, limiting customer dissonance.
Leading financial services that are already using analytics have significantly leveraged the potential of multi-channels to analyse the customer behavior. They have improved marketing outcomes, and have delivered products and services with a faster time-to-market ratio.
Emerging Practices to Successfully Implement Analytics in Mapping Customer Behaviour
1) Blending Internal and External Data to Build Customer Profiles:
Financial institutions, in this modern era, should increasingly focus on integrating customer data available from any source, be it internal (customer’s activity history), or external (demographic information, web data, social media footprint etc.).
Integrating of data helps in designing enhanced customer profiles. These profiles serve as a ready database for future marketing campaigns, as well as provide inputs for further analytics programs.
2) Harvesting Cross-industry Customer Behaviour Models:
Customer behavior in retail banking usually follows similar patterns across other service sectors like hospitality, travel, mobile usage etc. Most banks these days are taking advantage of the resource pool to gain exposure in building non-linear learning curves.
3) Sharing of Global Data:
The digital revolution is rapidly breaking geographical barriers between countries and people. The advantages of digitization should be therefore utilized by multinational banks in collaborating customer behaviour in one geography with another.
4) Taking Real-Time Actions on Customer Insights:
Banks are beginning to realise the positive upshots of analytics-driven customer insights. Agile banks are pouncing on the actionable data, making real-time decisions to personalize their customer’s banking experience.
New generation customers are aware of the options available at their disposal. This is making them more demanding, as well as less loyal to their existing bankers. Banks will, therefore, have to closely study the customer’s behavior and then design products based on their individual needs. This is crucial for banks to ensure not only their profits but also their survival.
What’s your organisation doing in terms of identifying and acting upon the behaviours and preferences of multi-channel customers? Share with us in the comments below!
Author: Kishore Kapoor
Kishore Kapoor an industry veteran of 31 years in global banking technology. A Founder & CEO of eKutumb.com – World’s first marketplace for enterprise software delivery and consulting business by creating value for all of industry stakeholders involved (customers, partners, individuals and investors) through a disruptive and trans-formative approach of doing business.