We must go outside of the financial institution to encompass a full understanding of the customer as an individual and not simply their current business relationship with the bank.
June 7, 2022 / 7:56 am
In times of pandemic, many financial institutions have identified a gap between their current “360º vision” of clients and their need for information in order to provide financial services with less friction and more attractive to consumers.
Financial institutions have long aspired to achieve the coveted 360-degree view of customers. For many years, this objective was limited to obtaining a comprehensive and integrated vision of the client’s relationship with the bank.
Today, that goal is extended, and we must move beyond the financial institution to encompass a full understanding of the customer as an individual and not simply their current business relationship with the bank.
The need to understand the customer has generated this awakening, and I like to think of this as an expansion of the 360 view, and financial institutions that can master this new objective and act on this intelligence in a timely, intuitive and respectful way, are going to to gain an advantage in optimizing customer relationships and profitability.
We can then identify a series of actions that bring us closer to this new 360º vision, so I am going to focus on naming some of them.
“We can then identify a series of actions that bring us closer to this new 360º vision, so I am going to focus on naming some of them”
The first necessary action is to break the current silos that we find when trying to put together a 360º vision, today in most financial institutions we find visions with borders. Call center, risk & compliance, retail banking products, corporate banking, chatbot, IVR… all these borders limit customer understanding and above all drive them away. A client who has to answer the same questions in the same call because they change people, or the communication is cut off and no one contacts them again, but the client must call again and reiterate the entire explanation. These silos are the most aggressive enemies that the financial industry has.
This is the Las Vegas effect, what happens in Las Vegas stays in Las Vegas… well, what happens in the call center stays in the call center and so on in each area. I reiterate, this defect is still very strong in the institutions, and in my personal opinion it is the first point of action.
The big problem with these actions is that most do not have an accurate vision of the potential in the short and long term of a client or a prospect. We know that most financial institutions have calculated and/or estimated this using demographic data and metrics, such as job title and ZIP code, as well as data from internal sources, such as loan documents, general credit card usage, and credit checks.
The potential we currently have and the large number of external sources of information, ready to be consumed and analyzed, allow us to build a more accurate image of a client’s real potential. When institutions have a clear picture of current or prospective potential, they have a solid basis for determining current participation as well as evaluating future prospects and profitability targets.
La primera acción necesaria es romper los silos actuales que encontramos al intentar armar una visión 360º, hoy en la mayoría de las instituciones financieras nos encontramos con visiones con fronteras. Call center, riesgo & compliance, productos de banca minorista, banca empresas, chatbot, IVR… todas estas fronteras limitan el entendimiento del cliente y sobre todo alejan al mismo. Un cliente que tiene que responder las mismas preguntas en una misma llamada porque cambia de persona, o se corta la comunicación y nadie lo vuelve a contactar, sino que el cliente debe volver a llamar y reiterar toda la explicación. Estos silos son los enemigos mas agresivos que tiene la industria financiera.
“The potential we currently have and the large number of external sources of information, ready to be consumed and analyzed, allow us to build a more accurate image of a client’s real potential”
The challenge that many companies continue to face is the ability to first identify which types of information will be most useful in assessing customer potential, effectively aggregating this diverse information, analyzing it, and translating it into action through highly personalized communication and follow-ups. best deals. The use of machine learning models that allow you to analyze all this information is essential.
Listening more carefully to the client is another action, it is essential for a complete understanding of the client as an individual. “Listening” can take many forms: person-to-person, digital interaction, customer surveys, online or mobile transaction patterns, consumer habits, to name just a few. The key is the ability to recognize the signals, those important messages, capture them and then act on the information. For example, a client has just published that he was a father, he appointed an executive in the networks, through open banking we know that he acquired a product from the competition. The ability to capture that information, integrate it into the bank’s total understanding of the customer, and offer personalized offers based on that data, such as discounts and promotions related to the arrival of a child, a travel plan, a savings plan for the university, opens up new opportunities to expand financial relationships and create deeper relationships with clients.
Otherwise, consider the demographics of the transactions that are posted to and from customers. This could include the type of transaction, its originator, frequency, and amount. The ability to analyze this data can provide vital information about how, why and where consumers are using their funds.
Financial institutions are “prudent” in monitoring their customers’ online reviews for information. In such cases, customers are not incentivized to give feedback; therefore, they are providing feedback of their own free will and most likely to be candid and honest. The ability to extract this feedback provides a wealth of honest customer feedback and can illuminate direction for future improvements and initiatives. Do not underestimate this type of information, according to Forbes 78% of online purchases are influenced by online comments. All said right?
Micro-moments, how good it is to hear them
Capturing and taking advantage of micro-moments generates moments of happiness. The idea of micro-moments, those instances where a consumer turns to a device or channel with a natural, visceral intent based on a need to know, a need to go, or a need to buy, has gained ground in recent years, but it hasn’t. in the financial industry. Micro-moments can be important turning points in building a customer relationship. Being able to identify those moments when a connected customer or prospect wants instant gratification and being able to deliver targeted content or a personalized offer on demand are great value drivers.
Creating strong relationships using micro-moments make the financial institution a differential to choose for its competitive advantages.
“Creating strong relationships using micro-moments make the financial institution a differential to choose for its competitive advantages”
Speed (time to market) is essential!!!! The ability to analyze and respond instantly is critical. The client highly values this component and speed of response. Consumers, especially millennials, expect immediacy and certainty in their interactions with vendors, whether that means delivering co-branded offers based on a customer’s physical location or simply understanding a customer’s history of withdrawing $100 every Friday night from an ATM and offering you quick options to get you on your way is very interesting.
Analyzing behaviors and acting quickly generate short-term benefits
