A survey conducted by Intuit found that when it comes to financial advice, 44 percent of Millennials are more likely to reach out to their parents, and 33 percent will go to the internet instead of their FI. This makes it critical to safeguard relationships with these digitally native customer segments. Millennials are generating large amounts of data using their smartphones and are actively looking for long-term financial planning – a service typically only offered face-to-face. However, this customer segment has a strong preference for online interaction, and they value good service. They know you collect their data, and they’re willing to share it – but they also want to see you use it to give them a more intuitive and personalized service.
The increasing popularity of social media platforms as a primary mode of communication adds a layer of complexity to delivering a frictionless customer experience. Engaging customers effectively via these new channels requires a continuous effort to gather and analyze “traditional” data along with crumbs of information created by customers through the digital world held in the palm of their hand.
“Internet users generated about 2.5 quintillion bytes of data/day; in 2020, each person generated about 1.7 megabytes/second and 80-90% of all this data is unstructured.”
The ability to interact with customers via different channels presents an opportunity to improve customer experience, increase engagement, and create a seamless transition from digital to physical banking (or vice versa). What’s more, incorporating data and analytics in the common, day-to-day banking operations can enable FIs to revolutionize customer experience and elevate the Return on Experience (ROX), an essential metric of a company's success to measure how well it's delivering against customer expectations.
Using insights derived from analyzing a continuous stream of data, FIs can receive in-depth research about customers to deepen relationships, boost cross-sell, lower acquisition costs, and nurture organic growth. In addition, you can assess this large amount of data through a behavioral analytics lens to develop an online engagement strategy for delighting digital natives and, as demanded, transition them to physical spaces.