One bank felt that in the future, traditional segmentation was likely to become less relevant due to the potential for one-to-one marketing in digital channels. However, it could still be important for broader marketing activities. Another bank felt that traditional segmentation was sub-optimal and would be replaced by one-to-one personalization.
The use of online data, whether web clicks or social media, for segmentation is still very rare.
Business intelligence: Collecting and storing more and more data from different sources is part of the challenge in digital marketing. Another challenge is how to analyze it; banks are increasingly using advanced techniques like predictive analysis (71% of banks) and micro segmentation (61% of banks) to do this.
It is heartening to see that banks are utilizing the data at their disposal to segment their customers and gain business intelligence, even though their efforts are mainly at a high level at the current time. This means that as they move to the next level of micro-segmentation and real time BI, banks will be able to improve differentiation and consequently, increase revenue, profitability and growth.