The Power is in the Customer Data
As customer preferences evolve, banks face the challenge of meeting rising expectations amid numerous alternative options. To stay ahead, banks can capitalize on their competitive edge: customer data. This valuable resource enables them to deliver personalized experiences across the customer lifecycle. Startups play an instrumental role in supporting this data-driven approach, offering innovative solutions to enrich the banking experience.
Capture customer data
Data can come from a multitude of sources, both internal and external. From internal sources, it can be transaction data that shows an existing customer’s purchasing history. From external sources, it can be social media interactions. Either way, it is critical to capture customer data while maintaining privacy and integrity.
Customer Data Platforms (CDP), such as Segment, collect and unify data to form a centralized customer database that is accessible to other systems. Once the data is unified through CDPs, it can then flow to other systems for further action such as creating data-driven marketing campaigns and performing customer analytics.
Data preparation can also be done for data science teams to perform analysis. Startups like Trifacta collect and structure raw data to be useful for analysis, also known as data wrangling.
Map the customer journey
Startups can help banks determine how customers are interacting with their brand at various touch points: before entering the bank’s website, while on the site and when the customer makes a purchase. This insight allows banks to understand their customers and improve their sales process.
To acquire new customers,
startups can provide sales intelligence, which equips the bank’s sales team with insight on potential buyers and how to reach them. There are companies like AptivIO that are leading innovation in this space. Additionally there are startups that can provide product recommendations to potential customers based on identified preferences determined by external sources such as social media.
Once customers sign up,
they expect a quick and easy onboarding process. Startups can digitally verify identities and quickly onboard customers. There are startups like Onfido that provide the identity verification function whereas, startups like Backbase provide banks with modular services to enhance the entire digital experience. To drive customer engagement before and after a purchase and to manage the customer relationship, omnichannel customer experience tools such as Kustomer can be used.
Build new product lines
Dynamic customer analytics reveal untapped revenue opportunities. By harnessing data, banks can collaborate with innovative startups like Quantum Metric to craft new products tailored to evolving customer demands. Furthermore, banks can enhance their offerings by unbundling services for more personalized product choices and integrating third-party solutions to help customers achieve broader financial goals.
Banks that effectively leverage customer data to tailor personalized experiences are well-positioned to meet and exceed evolving customer expectations. By collaborating with innovative startups, banks can embrace cutting-edge technologies that enhance their data-driven strategies, enriching the overall banking experience. This symbiotic relationship not only fosters innovation but also ensures that banks remain competitive in a rapidly changing market. As the financial landscape continues to evolve, those institutions that successfully integrate these strategies will likely enjoy increased customer loyalty, operational efficiency, and sustained growth.
-Kiswana