The reward will be great, but too few have the tools to get there
TREND 02 PERSONALIZATION
Financial institutions are moving quickly to offer one-to-one advice and services to clients impacted by global events. Their technological capacity to process and store the data needed to do this will be a key differentiator for success in the years to come.
The current period of financial uncertainty has driven greater awareness of individual financial wellbeing. A new generation has realized the importance of robust financial health to weather unexpected events and financial institutions have stepped up to support them. Increased credit limits and mortgage payment freezes are just a few examples.
“This global pandemic and economic crisis has impacted every home,” said Dave McKay, President and CEO of Royal Bank of Canada. “People’s life savings are being affected. Young people are just as worried about their future as those nearing retirement. And thousands of entrepreneurs, many who have put decades into their businesses, are worried about surviving the weeks and months ahead. … In times like these, people remember who was there for them.”
People of all financial circumstances have been affected by these events in some way and it has never been more critical for financial institutions to move closer to their clients and help them navigate these new waters.
The importance of a tailored approach
Did you know that 72% of consumers in 2019 only engaged with marketing messages that were tailored to them?
When the economy is stable, people generally look for consistent financial advice. A volatile economy produces volatile personal circumstances. Each client will be facing unique financial constraints which will need custom advice and services, rather than a broad-stroke approach.
Data for real-time action
Every business with a digital presence has the ability to capture data about their audience. Data that reveals the nuance of a person’s interaction, such as time spent looking at a specific type of item or service, reveals the appetites, preferences, and queries of that individual.
Collected at scale, this data uncovers meaningful patterns that can help your business to anticipate the most relevant and useful information to target people with. By combining both live and historical customer data, it’s possible to respond rapidly to changing events in-the-moment and predict what information, advice, or service they might need next.
This allows one-to-one engagement that’s both timely and contextual to match the rapidly shifting landscape.
Getting the most out of a CRM
According to Computer Economics, about 50 percent of financial services businesses use CRM (customer relationship management) systems, which is slightly lower than other service industries. While the rate of adoption is increasing rapidly, forward-thinking institutions must do more than silo it as a digital contact list, which is too often the case.
Implemented correctly, a CRM can facilitate complex business plans that increase revenue and competitive performance. Inputting additional data, like behavioral insights and content engagement, iteratively builds a clearer picture of each client you interact with. This then forms the framework for personalized communication.
“I find that the most effective applications of CRM systems and data in financial services are where the company collects and applies additional, relevant data to the consumer and/or household record and has the ability to drive a consistent experience across channels and functions,” says Karrie Sullivan, Principal of Culminate Strategy Group. “Technology gives us the ability today to apply demographic as well as personality profiles, behavior and decision-making personas, and other information needed to customize experiences for customers. One size does not fit all anymore.”
Putting customer wellbeing first
People are looking to lean more heavily on those that manage their assets through this unrest. The companies that have a fully functioning CRM and know how to use it will be best positioned to help their clients improve their financial wellbeing when it’s so sorely needed. ⬥
As personalized communications become the expectation of clients, brands who haven't invested in the tools that facilitate it will need to play catch up or fall even further behind.
