Why do some banks perform so much better than others? There are many factors, but a lot has to do with the way they manage, harvest, analyze and disseminate information.
Banks need information more than ever, in particular customer information. As a result, there has been a huge growth in the demand for customer relationship management systems (CRM). But CRM alone is not enough. We need to understand our customers as individuals – what products and services they want, what channels they prefer and what initiatives they are most likely to respond to. Banks need to be more proactive in understanding and predicting customer behavior.
The more customers believe banks understand and can respond to their individual needs the more the customer relationship is likely to grow and strengthen.
But how do you provide personalized financial services to thousands or even hundreds of thousands of customers it would normally be impossible to know personally. This is where predictive analytics plays such an important role.
Yet predictive analytics in customer interactions is still in its infancy in the banking industry despite the crucial role it can play in growing revenues, reducing costs and improving customer satisfaction as it has done in other industries (e.g. consumer packaged goods).
This is what U.S. Bank discovered when they introduced predictive analytics into their retail bank through a service called Uplift, provided by Portrait Software (www.portraitsoftware.com) a subsidiary of Pitney Bowes (www.pb.com). Revenue from marketing campaigns grew by 300 percent and mailings fell by 40 percent – a double benefit to the bottom line.
Other financial institutions have achieved similar success stories. Nationwide chose software from Portrait to present a single view of each customer, including details of each interaction, and intelligent, actionable prompts to help employees make the most of each customer interaction. By optimizing its customer interactions, Nationwide delivered incremental sales of more than 200 percent of original targets.
To help provide more insight into the power of analytics, BAI and Microsoft are sponsoring a webinar The Value of a Single Customer View in Competitive Markets on the 27th of April at 1.00 CST. The speakers will be Neil Skilling PhD, Global Solutions Owner, Pitney Bowes Business Insight, Ben Salmon, Global Solutions Owner, Pitney Bowes Business Insight and Ben Narey, Managing Director, Banking and Capital Markets, Microsoft.
For additional information, please see:
“Increasing Marketing ROI – the importance of uplift.”