Advances in data analytics, artificial intelligence, and digital communications are transforming how organizations understand and engage with their customers. Rather than relying on broad demographic categories, businesses can now develop highly detailed customer segments and deliver increasingly personalized experiences across every interaction. For financial institutions in particular, these capabilities present an opportunity to move beyond transactional relationships and build stronger, more trusted connections with customers through relevant, timely, and individualized service.
Innovations using improvements in communication and data technology are providing the insights into customer segments. The intelligent application of analytical engines has enabled the constriction of customer segments to what were considered impossible granular levels. The ideal of driving to a segment population of one, with appropriate offers and incentives no longer appears to be out of reach. Now the real work begins.
“Customers today expect intuitive, proactive, and personalized service all the time, regardless of the communication channel,” says Olaf Rehse, senior partner and managing director[Boston Consulting Group]. “That expectation can be met by using modern technologies that enable businesses to offer services that are more individualized, faster, and much less expensive.”
Mercator Advisory Group’s findings around how consumers are interacting with financial institutions demonstrate there exist an opportunity for these same institutions to recast themselves as trusted resources and away from the perception as a necessary evil. Applying heightened personalized service and flexibility to accommodate individual circumstances will go a long way in doing so.
Personalization is quickly becoming a competitive necessity rather than a differentiator. As analytics platforms continue to improve, financial institutions and other service providers will be able to deliver experiences tailored to each customer’s unique needs and behaviors. Those that successfully combine customer insights with proactive, personalized service will be better positioned to deepen relationships, strengthen trust, and improve long-term customer loyalty in an increasingly digital marketplace.
Overview by Joseph Walent, Associate Director, Customer Interactions Advisory Service at Mercator Advisory Group
Read the full story here
