When it comes to retail banking, customers today expect personalized service—around the clock—from their banks.
That means to be competitive, retail banks must—not should—offer their connected customers access to online banking, mobile banking and remote account management, according to an article in Banking Systems & Technology.
And if they want to be successful, banks have to continue to set themselves apart from their competitors by ensuring customer loyalty while remaining profitable.
When used effectively, Big Data and analytics can help retail banks reach their goals by enabling them to better understand individual consumer preferences and more effectively predict consumer behavior, notes the article.
The fact is that data has always been a critical part of banks’ loyalty/reward program strategies, but with Big Data, banks can build profiling programs for each customer, determine which customers are profitable, understand what methods of motivation are most likely to succeed for each, and then tailor relevant programs uniquely.
Loyalty/reward programs that are built on “intelligent and responsive technology platforms” give banks a 24×7, 360-degree views of their customers, offering insights to enable them to continuously fine-tune those programs to make them more relevant and appealing to specific customers, the article says.
By using analytics to generate all the necessary insight at the right place and at the right time, banks can create rewards programs that match the diversity and profiles of their customer bases.
However, a bank has to do more than just select the right content and rewards for its customers, it also has to ensure that those customers will engage and make transactions whenever, wherever, and on whatever devices they choose. The key to engagement is regular and tailored customer communication, which can lead to a more successful and profitable relationship. Research shows that a customer who completes one transaction becomes seven times more profitable to a business [than one who does not?]
“If you’ve got the data insight right from the very beginning, and have put the right content in place, your communication will be timely, relevant, and personalized and ultimately, add more revenue to your bottom line,” the article notes.