The tools to create superior customer engagement are here
The data revolution, coupled with cutting-edge technologies like AI/ML, has enabled organizations to truly connect with their customers and establish ongoing, value-driven, and emotionally resonant relationships. Recognizing the context behind the customer interaction is critical, enabling firms to respond in an empathetic and relevant manner. It also fosters more trusted and more convenient interactions, empowering financial institutions to drive customer engagement and growth in an increasingly digital world.
Many institutions have already begun investing heavily in technologies like artificial intelligence, machine learning, and data analytics while pursuing their digital transformation journey. For instance, banks and insurance companies are expected to increase their AI investments by 85% by 2025, according to the Economist Intelligence Unit. Yet many firms have been unable to reap benefits proportionate to their investments and have been unable to provide customers the personalized experiences they want.
So, the question remains: How can financial institutions best utilize the massive amounts of data and the advanced technologies at their disposal to create value for their customers?
Strive to create mutually beneficial value propositions
There has been exhaustive research on concepts like gamification and behavioral economics and how they can be applied to create mutually beneficial value propositions for customers and for the enterprise. Some financial institutions have successfully delivered on these concepts by building a strong understanding of their customers’ behaviors through real-time data and advanced analytics. Equipped with these insights, they gain the ability to deliver highly contextual messages to their customers – at the right place and time, and on the right platform – to nudge them toward favorable outcomes, like improved financial wellness.
In exchange for highly personalized, highly valued experiences, customers are willing to share more personal data with their trusted partners. However, they expect to be rewarded for sharing their data, and receive similar levels of personalization, or greater ones, than what is delivered by digital-first players like Amazon and Netflix. The time is ripe for financial industry players to ask: How can we effectively nudge customers to achieve mutually beneficial behaviors?
The future of customer engagement in the financial services sector
The concept of customer engagement within banking and financial services has already evolved from providing traditional persona-based offerings to more contextually personalized products and experiences, with a vision to achieve differentiation. New marketplaces and models (such as “pay as you live”, open banking) are seeking to redefine customer experiences and are gaining popularity.
Which model will emerge as the new standard for customer engagement across the BFSI? Will there be only one?
Find out more in Wipro’s new report on hyper-personalization, in which we examine the changing landscape of customer engagement in the financial services space, along with imperatives for incumbents.
- “A LOOK AT WEALTH 2019”, Coldwell Banker