The concept of data driven strategies are not new but the tools available to financial institutions have transformed their ability to quickly make informed decisions – providing insights into what happened over the past month, quarter or year - by product, campaign or segment. As a result, more financial institutions are leveraging data science practices to plan and run marketing activities.
While this is a positive step, the fact that data can at times prove anything we want, still pervades too many institutions. The key is to start understanding what data is available, the quality and timeliness of the data and how you intend to use it.
BKM assists many clients in building a data strategy that is iterative and informative. The challenge is to know where to start.
Many institutions are still led by gut instinct or partial data profiles to provide the answer to “who are your customers/members?" Financial institutions that will thrive in the future will not only be able to answer that question - but will also know “why" they are your customer/member. The answer lies in fact-based analysis using real data.
Too often financial marketers use very high-level data elements to build lists for marketing and sales campaigns. The reality is that a poorly formulated list will not provide the desired program results. We help our clients maximize their targeting to reach their most likely responders - optimizing their ROI.
Too much focus is placed on products in financial services – the fact is that most financial products are a commodity. But that does not mean that there is not opportunity to offer new products or find new audiences for existing offerings. We help financial institutions identify those opportunities and act on them.
In financial services, program success isn’t defined by just a single metric like response rate or new balances – and marketers need to have a deeper understanding of these factors to ensure underperforming programs don’t continue to repeat themselves. We help our clients get to that “why” and guide them through new and innovative approaches to market.