bankingciooutlook

How Personalization Fosters Customer Experience?

Banking CIO Outlook | Friday, December 04, 2020

Personalization in banking is about building a range of tailored experiences throughout channels instead of just customizing emails and newsletters with the customer’s names.

Fremont, CA: Personalization is essential for an effective marketing strategy, but traditional personalization is not enough. Customer expectations, competition, and new technologies are emphasizing the inevitability of personalized experience that customers expect from their banking service providers.

Here are five personalization trends using data and artificial intelligence (AI):

Multi-source Data

Financial institutions can utilize data to predict customers’ needs by understanding the journey they’re in. It is crucial to monitor customer behavior and interactions from various sources such as physical and digital channels to get a comprehensive view of the customer. This approach, along with the buyer journey, helps build a personalized conversation tailored to a customer’s particular needs.

Enhanced Customer-centric Experiences

A personalized, customer-centric approach provides customers the information when and where they need it according to their current situation, future requirements, or personal interests. Organizations should focus on the customers’ benefits by offering personalized advice and information to let them know that banks are there for them.

Location-based Personalization

Location-based personalization use data to customize content based on a customer’s location information like targeting by customer ZIP code or use geo-marketing data to send targeted messages or provide in real-time to a customer’s mobile app when they are near a branch.

Hyper-Personalization

Hyper-personalization considers different data that are used across marketing channels and customer journey stages. This method helps optimize engagement and move customers through the funnel faster. Successful hyper-personalization tactics need to aim at engagement, relevance, and trust.

Segmented Customer Communications

Analyzing data according to a customer’s life stage, current goals, or pain points helps an organization market to an audience of one. This helps the organization seem more human, which can support its brand’s relationships with its customers.

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