A simple definition of Personalization is making content, product or service meant for consumption that suits a consumers individual taste or needs. Personalization is today the Competitive Differentiator for all industries and is in no way less critical to banks.
Consumers want and expect their financial institution to understand their needs and deliver personalized solutions similar to what they receive from Google, Amazon, Facebook and for banks this is critical in order to build customer loyalty, attract millennials, and retain clients.
In fact Personalization drives Customer Engagement.
So how does one go about Personalization? Lets look at 5 key steps shown below:
1. Anticipate Needs - Make strategic bets by anticipating individual needs and interests based on demographics.
2. Re-Architect Platform- Focus on building and re-architecting platforms that brings agility and enables trust.
3. Analyze Data - Personalization gives the impression that people matter on an individual level to the banks that serve them. But the fact is that most personalization is an automated process, made possible by the collection of massive data sets and increasingly sophisticated analytics. Banks should use present day tools and AI, to get a clear sense of each customer’s financial and behavioral preferences and determine patterns such as how a customer spends, saves etc.
4. Predict Preferences - Use predictive analytics to individualize customer preferences experiences. For example, using predictive analytics has enabled mBank to discover individual customer preferences and identify the next best activity for its marketing efforts.
5. Enable Omnichannel - Make it easy for customers by enabling omni-channel experiences. USAA Bank is known for providing great service. USAA has done a remarkable job in creating an Omnichannel experience to enable personalization. Omnichannel enablement allows banks to initiate more direct conversations, resulting in a better understanding of its clients and generating revenue growth.
Improved data and rapidly improving digital technologies enable banks to meet customers’ heightened expectations of personalization. Today, there is really no excuse for not taking advantage of AI, Data Sciences and AR/VR Technologies to improve Personalization.