The fintech market is flooded with valuable consumer information, as global data volume has increased 700 percent since 2012. But the average company only captures 30 percent of the potential value from their data and analytics, according to McKinsey Analytics.
Despite growing mountains of data, organizations still struggle to break down siloes and connect with customers, prospects and partners on a personal level.
And as data collection automates and scales, more and more individual consumers will fall through the cracks across a one-size-fits-all marketing mix.
Leveraging data to humanize the customer experience requires embracing the power of personalization, breaking down disconnected data silos and adding hyper-relevant messaging across the customer journey.
The Power of Personalization
How powerful is personalization really?
Personalized communications boost customer loyalty and drive revenue growth of 10-30 percent across digital channels. Further, 93 percent of companies earn more success converting prospects with a personalized marketing strategy.
In all, personalization is most effective when it offers three specific elements:
1) Control. Customers are bombarded daily with more marketing than ever before, and they've become conditioned to ignore generic messages. Personalized messaging disrupts and lowers consumer defenses – and empowers your organization to control and tailor the message you’re delivering. A direct, personal appeal engages customers on an emotional level to turn transactions into more than an exchange of cash for goods or services.
2) Choice. While customers distance themselves from generic content, they love having personalized options that add value. The ability to suggest product paths that save your customer time, money or offer peace-of-mind will solidify your brand as a trusted resource.
3) Relevancy. If customers can’t relate, they won’t. Imagine sending a new homeowner a loan pre-approval email days after they close. Would that customer feel confident you were anticipating their needs? Consumers want to see themselves in messaging. If your data isn’t helping you connect to prospects on a human level or solve their pain points, then it’s not connecting at all.
The Data Disconnect
Ultimately, to connect with consumers, your relationship managers or salespeople must capitalize on the data your organization is already capturing. However, to do that they must have a way to turn data into actionable insights.
To make your data hyper-relevant, follow this four-step approach:
- Foundation. Construct a 360-degree view of your customer by connecting rich data across data silos.
- Decisioning. Determine which content is best served to a given customer in a given channel at a given time.
- Design. Craft branded, streamlined experiences across multiple channels, focusing on highlighting your best content with speed and precision.
- Distribution. Deliver the content. Track your results. Rate the impact across key metrics, such as engagement and conversion. Make changes. Learn.
Importance of Hyper-Relevance
Leveraging data to personalize the customer experience so it can drive revenue is an ongoing process — personalization is the foundation, while hyper-relevance goes beyond to leverage data and build trust.
Hyper-relevance is the ability to look deeply into your digital data to create valuable relationships for ongoing customer engagement and keep the customer coming back again and again.
To do this well, organizations must look beyond their traditional customer journey, rethink data and earn trust continually by proactively presenting value-rich opportunities to consumers, like cost-saving rate reductions.
The more you understand your customer, the more valuable your services will become, and the happier they’ll be doing business with you.
Reach Deeper Insights with Data Personalization
Organizations will always want more data and more robust technology solutions, but the ability to personalize your customer experience will remain a key differentiator.
To succeed with personalization, organizations must have access to clean, integrated data to help teams establish meaningful, lifelong customer relationships – not to mention repeat and referral business.
If you want data that helps increase revenue, it’s not enough to build fantastic data reports —organizations must have a way to dig deeper for data insights that truly empower relationship managers with fantastic experiences for your customers.