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Banks are adopting analytics in a bid to replace the traditional demographic-based approach towards customer services.
FREMONT, CA: The trend of making services customer-oriented is a direct result of rising demands among customers for better services, and the best way for banks to achieve it is through the use of analytics. Technology is the most crucial aspect of the digital age, but so are the customers and their changing expectations on service providers. Improved customer services enhance business opportunities and increase brand value, due to which banks are prioritizing it. Under the traditional approach, banks collected customer information to build databases that could be used to disburse services. Now, customer data has become easily accessible, and analytics solutions are empowering banks to leverage the data for improving customer services.
The use of analytics in the banking sector is not new. Several processes are already using data analytics solutions to hike the efficiency of operations across departments. However, the potential of analytics in improving customer service is incredibly high, making it an indispensable tool for banks. The following list throws light on the factors which make analytics important for CIOs in their quest to help banks improve customer service.
• Handling Vast Data Volumes Effectively
There are several constraints when it comes to handling analytics through traditional approaches. With the exponential rise in the amount of customer data available with banks, manual analytics is out of the question now. Advanced data analytics solutions are equipped to handle vast amounts of structured and unstructured data from disparate sources. Using analytics, banks can effectively process customer data with a high degree of accuracy on a regular basis. Analytical solutions are optimized to cater to the needs of commercial and retail banks that handle tens of thousands of customers across the world.
• Effectively Categorizing Customers into Segments
Customer data becomes valuable when it can be leveraged to categorize a vast number of customers into broad categories. Previously, customer databases that banks created had details regarding an individual's gender, age, education, and other such general information. These are not insightful enough to allow the creation of categories. However, with data analytics capabilities, CIOs can empower banks to create customer segments based on relevant metrics.
These allow banks to develop better intelligence regarding customers and, thus, promote better customer services.
• Uncovering Hidden Trends in Customer Behavior
Understanding what customers want is one of the basic steps of improving customer service. CIOs can help banks deploy data analytics solutions to gain better knowledge about the desires and demands of customers. Data analytics solutions sort through customer data to reveal behavioral patterns among customers. These patterns are impossible to detect without the power of data analytics. Knowing the attitude of the customer allows banks to engage customers across the right channel, with the right strategy.
• Enabling Personalization of Services
Personalization of services is the only way to engage with individual customers effectively. Modern customers expect banks to reach out to them with relevant services. The only way banks can achieve this is through the application of advanced analytics solutions that make use of customer data from various sources to build integrated customer profiles for individuals. These profiles allow banks to identify customers and study their requirements. Thus, with analytics solutions, CIOs can help banks make customer services highly personalized and dedicated.
Data analytics have proven to be an effective way to study consumer trends and build an impressive foundation for improving customer services, making it a valuable technology that banking CIOs want to adopt.