Retail Banking

Personalization is a basic expectation for modern consumers in most product and service segments. Retail banks also need to be prepared to identify and satisfy their clients’ individual needs in all relevant life moments.

Description

Banks can effectively deliver what customers want and when they want it only if they identify those life moments when customers directly or indirectly need a core or a non-core Retail Banking product. However, in many cases the primary need is towards a different product or service (big ticket item, car, real estate), or life event (new born baby, wedding, travel) and the need for a banking product is indirect. Therefore, it is crucial to capture it at the digital or physical place and at the momentum of the need, to give a real time, relevant and personalized banking product recommendation to enable the actual transaction to happen.

A personalized customer experience has become a de-facto feature of online services. Pioneered by the likes of Amazon, consumers have grown to expect tailor-made services from all of their online providers in every industry. However, when it comes to banking, little personalization has been done so far and hence banks are missing out on additional revenues and higher customer satisfaction:

86%

of customers say personalization plays a role in their purchase decisions

62%

of customers have chosen, recommended or paid more for a brand that provides a personalized service or experience

1 in 5 customers

who expressed an interest in personalized products or services are willing to pay a 20% premium

Banks could effectively deliver what customers want and when they want it if they identified those life moments when customers need a core or a non-core Retail Banking product. In order to do that, banks shall firstly identify the primary product or service that the banking product is associated with:

Prerequisites to create personalized customer experience

1. A digital ecosystem that enables banks to observe customers’ online and offline behavior
2. A personalization engine to identify the need from behavioral data and to deliver the relevant personalized offer

A personalized customer experience has become a de-facto feature of online services. Pioneered by the likes of Amazon, consumers have grown to expect tailor-made services from all of their online providers in every industry. However, when it comes to banking, little personalization has been done so far and hence banks are missing out on additional revenues and higher customer satisfaction:

86%

of customers say personalization plays a role in their purchase decisions

62%

of customers have chosen, recommended or paid more for a brand that provides a personalized service or experience

1 in 5 customers

who expressed an interest in personalized products or services are willing to pay a 20% premium

Banks could effectively deliver what customers want and when they want it if they identified those life moments when customers need a core or a non-core Retail Banking product. In order to do that, banks shall firstly identify the primary product or service that the banking product is associated with:

Prerequisites to create personalized customer experience

1. A digital ecosystem that enables banks to observe customers’ online and offline behavior
2. A personalization engine to identify the need from behavioral data and to deliver the relevant personalized offer