February 20, 2013
Apple, Nordstrom, and Amazon have been using analytics to personalize the selling experience for years. Whether you are shopping online at Amazon or working with an Apple or Nordstrom sales rep, analytics about you and your shopping preferences are working under the covers to guide you to products that you are likely to purchase. Today, consumers have learned to expect a personalized shopping experience whether they are buying products for personal use or for the workplace.
And banks need to catch up if they are to remain competitive.
One of the major challenges for retail banks is qualifying leads in the sales process. Not all products can be purchased or used by all customers. Eligibility plays a major role on what banks can present to a potential customer. In fact, many business banking products in particular require a complex and often difficult eligibility qualification process. As a result, banks are not necessarily selling the right products to the right customers. Banks are leaving revenue and profits on the table and the customer is not getting what they need. Ouch.
Eligibility analytics can close that gap and accelerate banking revenue and profitability. So what goes into developing eligibility analytics?
- First banks must build a data base of personalized, interactive information on customers. Not just historical transactions or customer data from 10 years ago when an account was opened or even 6 months ago. Banks need current information about customers’ needs, goals, concerns and future plans. So how do you get this information? You need to interact with customers at the point of sale and ask them a wide array of things about them and capture that information.
- Second, banks must compare their data to current industry data, not just historical data, to truly understand current market dynamics.
- Then the magic happens – complex algorithms analyze the banks data with current industry data.
- The result is a personalized recommendation for the prospective customer.
This process and the resulting reports help banks know with clarity how to onboard new customers profitably from the start of the relationship, and know how to move unprofitable customers to products that will become profitable. Are you ready to get started? You could be up and running in less than 3 months.
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