Financial services have become increasingly competitive. Today’s bank customers have access to information from the web, TV, email and text which has led to the rising need to improve financial services that will fulfill their needs. However, the wide array of information and communications channels poses a challenge to banks when they want to reach their target customers and influence their behavior. However, banks can reach their potential and existing customers in a new environment by understanding their behavior as well as factors that influence them and when/where they become more receptive to influences. Such deep customer insights (also referred to as customer intelligence) can assist retail banks to design right messaging through proper channels at designated times in order to offer effective influence and impact.
Raw Customer Data
The bank’s Customer Relationship Management (CRM) and sales systems store customer data and wealth data which is gathered through the contact center. Interestingly, 80% of the data is unstructured which can be used as a resource to gather potential information. Nonetheless, new technologies like language identification, pattern matcher annotators and linguistic analysis could make a significant difference in utilizing customer interactions. The recorded conversation between the customer service agent and the customer offers valuable data on the true intent of the customer as well as their behavior. Furthermore, it offers additional insight on how the customer perceives products and services offered; this can assist in identifying the reason he customer made the call.
Customer intelligence tools identify the behavior trends and patterns of the customer that could lead to enhancing different bank processes that will improve services provided to a customer. Cumulatively, it can help create a more personalized and effective experience for the customer and invent better financial service products.
Using Customer Intelligence
Customer intelligence platforms gather information from customer interactions which include customer emails, web chat and phone calls; this is later converted into significant insights on how to engage the customers. Nonetheless, the technologies and the skill set needed to create integrated and customized platforms are often expensive as well as time consuming. Therefore, the most cost-effective way of integrating customer intelligence is to partner or outsource the services. For instance, NLS Banking Solutions offers a Credit Management System (Tera CMS) that includes modules like Loan Origination, Events and Notification System, Loan Processing, Lead Management, CRB Extractor and Formatter, and Debt Collection Solution. The Lead Management module acts as a customer intelligence platform that is also the customer relationship management module of the lending solution (Tera CMS) responsible for maintaining details of the prospective loan applicant. The system facilitates capturing of the lead details through external channels as well.
Customer Intelligence Competitive Advantage
Banks can use customer intelligence to determine the different interaction experiences needed by various customers and identify priority customers. Moreover, it can assist in risk mitigation for banks by detecting potential bad loans and identifying customers who could potentially switch to another bank. As a result, the cost of marketing for banks can reduce by up to 36% to existing customers. 20% of customers cost more to serve than the revenue they generate. Customer intelligence helps banks quickly determine drivers of margin variation and find sustainable margin improvement opportunities.