We all receive recommendations on online portals or apps for movies, books, music, videos, food etc. based on our history of online transactions. Similarly, for transactions performed over the counter we receive recommendations on products, information about discounts and offers on our preferred brands, based on the history of transactions performed using a privileged membership card. All these insights empower us to make purchase decisions.
Organizations are doing everything possible to offer products that customers want to buy based on insights about their lifestyle using advanced analytics on transaction history data. This allows them to improve the ROI on their promotions by eliminating irrelevant offers.
Similarly, banks have a wealth of data at their disposal from multiple touch points combined with customer interactions on social platforms to arrive at recommendations. With the help of all the data they have, banks can understand the latent need of their existing customers, and contextualize their recommendations, offer pre-approved personalized financial products through their digital channels and encourage customers to buy them, thus considerably increasing the possibility of success. The cost for the bank this way will be a fraction of what it can offer through any other mode, thereby increasing the profitability and competitiveness.
A data-driven approach to technology allows banks to improve business outcomes and innovation. Adoption of analytics solutions provides an opportunity for banks to:
It is essential that analytics capabilities be accessible to all functions within the organization to empower employees to take decisions based on actionable insights.
Offering the customer convenience, control and choice using data analytics does not only make the customer happy but rewards the business with repeat purchases and hence customer retention. Data security also needs to be factored in to avoid loss of trust of stakeholders involved. Thus a robust framework of security guidelines and protocols need to be in place in this journey towards true customer delight.