In this digital age, and especially in the past couple of months, you may have asked yourself how you can build deep relationships with your account holders if they never come into a branch. Did relationships die out to be replaced with faceless data?
Not quite. The truth is, data can be a building block for creating more human experiences in the digital realm. And the expectations of modern consumers have made data-driven marketing a necessity, not just a “nice to have.” When done right, the personalization enabled by data-driven marketing can lead to deep, lifelong relationships with consumers — and more revenue for you.
We broke this idea down in three steps with plenty of resources to help you navigate the new era of data-driven marketing.
1. Recognize the value of your data — and harness it.
The data you have in your reach is valuable. Don’t believe us? Think about this: Google wants it. And they're stepping into the financial game to get it.
Google has built an empire by transforming data from what people do (search terms, browsing, maps) into monetizable insights. But even they know they’re still missing out on a trove of valuable data — like the transactions housed in a consumer’s checking account (i.e. the data financial institutions like you already have).
After you’ve recognized the value of your data, harnessing it can be a little more complicated. Fortunately, there are trustworthy partners and resources that can help you along the way.
By comparing your data against a much larger dataset, a fintech partner could magnify the significance of the analysis and the opportunities that such analysis reveals. You would enjoy the benefits of large-scale data processing without the requirement or costs of collecting it firsthand.
More resources for your data toolbelt:
- Why owning your data is too good an opportunity to ignore
- The data imperative: Yesterday’s news in data
- Data strategy with Pradeep Ittycheria
2. Personalize your marketing to build stronger relationships.
Once you’ve recognized the value of your data, why not put it to work building deeper, longer-lasting relationships with consumers using technology-powered personalization?
As technology capabilities have continued to increase, the definition of “personalized” has become more and more refined. An email with a person’s name in the subject line is good. An email with the person’s name and product recommendations based on their interests? That’s even better. And exactly what you need to build stronger relationships with both new and existing account holders.
Today's consumer expects this type of marketing — and will do what they can to get it. Research shows 91% of consumers are more likely to shop with brands who recognize, remember, and provide relevant offers and recommendations to them. And 83% are willing to exchange data in order to receive a personalized experience.1
So why exactly is personalization so popular? The psychology of personalization shows consumers feel more in control and a reduced sense of "analysis paralysis” when viewing marketing tailored to them.2 In other words, they're happier and more likely to make a decision because the choice is clear. They want what speaks directly to them (and we mean that literally). In the words of Dale Carnegie, "Remember that a person's name is, to that person, the sweetest and most important sound in any language.”
More resources for your personalization toolbelt:
- Customer segmentation models: Why one size doesn't fit all in banking
- Marketing is a puzzle. Do you have all the pieces?
3. Drive revenue for your institution.
Once you’ve completed the first two steps, this one basically completes itself. Deeper relationships lead to more revenue — more cross-sells, more products-per-household, and less attrition. Research shows that today’s personalization leaders have found proven ways to drive 5-15 percent increases in revenue and 10-30 percent increases in marketing-spend efficiency.3
The fact is, data can be messy — especially if you’re diving into it for the first time. But the opportunities it provides to not only attract but deepen relationships with consumers makes it worth getting your hands a little dirty (or finding a partner who will do all the dirty work for you).