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How Banks Can Benefit by Leveraging Analytics
The banking environment transforms according to the new regulations and laws which are continually impacting this critical environment. Technology has been a savior as it has helped to navigate many time-consuming areas in banking which have helped in improving customer experiences, identify new cross-sale and needs-based opportunities, it also helps in mitigating risk and drive strategies for organization’s growth.
• Understand customers and market the right product
Analytics concentrates on the reason behind something that happens and also predicts what can happen next. Analytics has numerous advantages and is a helpful tool for industries who market themselves to customers. When an enterprise is prioritizing cross-sales, customer acquisition or retention, analytics is a crucial tool for segmenting the audience and customer base. As analytics provides in-depth information regarding each customer, it helps lenders in deciding which segments are most appropriate to target depending upon their products and services and thereby enhancing the bank’s relationship with its customers.
• Increase cross-sale opportunity
Many e-commerce giants and restaurant joints’ cross-selling efforts have increased their revenue. For cross-selling products, it is essential to understand which products and services pair well together. By collecting data and gathering insights on the services, one can focus their marketing efforts on the required segment to target marketing campaigns.
• Safeguard the customers
Customers invest their time, trust and loyalty in an institution; therefore, protecting the customer’s information becomes significantly important. To avoid losing customers and also financial implications, detecting and preventing fraud cases becomes an essential consideration. These frauds can be classified into check fraud, identity theft, deposit fraud and many more. Analytics can be used to identify the pattern, people, places, systems and events associated with frauds.
• Bank strategy and revenue
Financial institutions cater to a variety of different customers, with different locations and needs. Gaining a holistic picture of the target customers will allow organizations to grow and determine all the business strategy of the institution. Data-Driven marketing needs to be an enterprise-wide effort. Like any new technology is implemented, the use of analytics won’t be impactful if the entire organization isn’t on board.
• Get started with the analytics
Implementing new technology could be daunting, but the more challenging task is to decide where to start from. For community banks and credit unions, which has fewer resources and less money, it’s essential to understand that there are numerous ways in which one can start with small and reap significant benefits. For instance, customer relationship management (CRM) could be a perfect fit.
CRM avoids the challenge of keeping track of email logs, calendar invitations, and spreadsheets. Relationship management system provides all the latest information on the daily activities performed by the staff and a clear picture of each customer; CRM helps in managing expectations.