Whilst browsing the internet I came across a compelling quote by Peter Ferdinand Drucker who asserted that, “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself”.
In today’s technologically driven business ecosystem, it is quite evident that data provides the greatest means of understanding customers and their behaviour. And if we are to take Peter’s Drucker’s quote further, data must play a significant role in shaping an organisation’s product offerings and services. This fact has resonated with Financial Services marketers; with 53% of respondents in a recent report stating they will increase investment in marketing analytics.
These figures should come as little surprise, and reflect the results of a highly regulated environment and an industry trying to play catch-up in a rapidly evolving digital landscape. However, these circumstances could potentially provide the optimal climate to leverage analytics and glean
deeper, more insightful knowledge around consumer behaviour. This information could ultimately be applied in a socially conscious manner to provide real value to customers, enhance marketing outcomes, drive revenue generation and secure a competitive advantage.
Financial marketers need control and access to data
Although their have been great strides made in the Financial Services to enhance marketing analytics, many are still burdened by legacy systems and processes which can stifle efforts. Some financial marketers face the rudimentary challenge of locating the most valuable data assets and securing control of their usage. This can be further exasperated by the absence of a data-centric culture which can breed functional silos and an “inter” business unit focus. It is clear that financial marketers need to be emboldened by sophisticated technological tools which enable a horizontal approach to analytics and an organisational culture which supports the sharing of data across these boundaries. All the while employing analytics in a compliant fashion, whilst maintaining effective Data Governance procedures.
It is clear that financial marketers need to be emboldened by sophisticated technological tools which enable a horizontal approach to analytics and an organisational culture which supports the sharing of data across these boundaries.
Personalisation is fundamental to success
Scrutiny from regulatory bodies means financial institutions are under pressure to sell affordable products to their customers. Analytics can be used to build an accurate model of the consumer identifying the right product to market at the right time whilst minimising risk and demonstrating compliance.
However, personalisation is no longer an added bonus, but a necessity needed to appeal to the modern day savvy consumer! The benefits of personalisation can stretch beyond compliance to commercial gain. Financial services companies recognise this, with targeting, personalisation, and customer journey management rated as the highest priorities in 2017. The days of mass, generic marketing are over and organisations must embrace a robust focused effort to engage their consumers. Ultimately, taking advantage of the data amassed from digital and growth of omni-channel for greater granularity in marketing campaigns.
Context takes on renewed importance in an omni-channel environment
The exponential growth and diversity of data sources available can be viewed as a blessing and a curse. Organisations across the board are struggling to grapple with the sheer volume of data now available and develop a strategy to contextualise this information for actionable analytics. Financial marketers are no different, however, regulatory constraints also need to be taken into account as well as strict privacy laws. Cloud-based architectures, social media, telephone, robotics, on and offline platforms all hold a host of insights. But the right considerations must be taken into account, including the consumer demographics to optimise engagement without breaching regulation.
Fintech disruption is here to stay
A recent survey by Scratch discovered that 53% of consumers thought their bank offered nothing different from others whilst 73% said they’d be more excited about a new financial services offered from Google, Amazon, Paypal or Square rather than their own banks. It is clear that many tech giants and Fintech organisations benefit from having a better relationship and deeper understanding of their consumers needs. This can be loaned to a number of factors including: the lack of legacy infrastructure and an analytically-driven culture embedded into the DNA of the organisational workflow. Analytics will play a crucial role in ensuring traditional financial services organisations continue to remain competitive and capitalise on the wealth of practice they have obtained from centuries of work.
Join the Chief Analytics Officer, Fall conference taking place in Boston from October 2-5 to hear case studies from Capital One, Bank of China, Bank of Montreal and Synchrony Financial and how they are empowering financial marketers and deepening customer relationships through analytics.
By Andrew Odong
Andrew Odong is a Content Director at Corinium Global Intelligence. Andrew has worked across Europe and the US, bringing high quality content and developing conferences for Chief Data Officers, Chief Customer Officers and now Chief Analytics Officers. For enquiries email: [email protected]