How important is it to know your customers?

Posted by | March 20, 2017 | blog | No Comments

big data analyticsIt is so easy for customers to reject marketing contents that are uninteresting or irrelevant to them – Just a click and mailers are added to spam! How many of us have actually seen the ‘promotion’ tab in our own Gmail? If you have seen this tab, you will find hundreds of marketing emails which are sent on a regular basis. The minute we find that someone is trying to sell something; we rush to click the delete button. Don’t we always skip the ad in a YouTube video, when we have the choice to do so? Aren’t ads between interesting movies or TV shows, annoying? These days, customers DO NOT want to see contents that are forced on them.

What are the 2 approaches in marketing?

  • PUSH STRATEGY: This strategy involves taking the product to the customer via multiple means ensuring that the customer is aware of the brand at the point of purchase. Fliers, notices, cold calls and YouTube ads are all part of push strategy. Remember the annoying ads between our favourite TV shows?
  • PULL STRATEGY: A pull strategy involves motivating customers to seek out your brand in an active process. This can be achieved by creating rich content in social media, website and blogs where there is wide reach and prospective customers will get in touch with the company if they think that you have a solution that can solve their problems.

Push strategy in marketing is over! Marketers need to understand that trends have changed. Marketing is no longer about the company, products or its solutions. It is predominantly customer centric. Marketers need to identify the following – Who are our customers? What challenges do they face? How best will we be able to make a difference to them?

These days, customers are on the lookout for highly personalized and customized services that are designed to tackle their challenges. This is all the more important in banking and financial services. Financial institutions primarily deal with a wide array of products and services catering to different kinds of customers. It is very crucial to market products and services that are relevant to their customers and not just anything they have to offer.

Let us look at an example.

  • Scenario 1 – Richard, who has 5 Billion dollars in his bank account, gets a call from his bank asking if he would like to apply for a vehicular loan with low interest rates. This is absurd, right? Why will Richard want to apply for a vehicular loan considering his sound financial status? This is an example that shows how ignorant the bank is with regard to its customers.
  • Scenario 2 – Richard gets a call from his bank asking him if he would like a dedicated relationship manager to assist him in managing his finances and to give him a variety of investment options as he comes under the HNI category. This would be a better marketing call that is in line with Richard’s interest, isn’t it?

This is just one of the many instances where financial institutions can actually strike a chord with their customers by providing them with rich content through different media, including calls. It is evident from the 2nd scenario that the bank has done its homework before reaching out to Richard with its offering.

Before drafting a marketing content, it is essential to study the customer profiles and get all relevant information so that the solution can be tailored to their interests and priorities. This aspect is called the ‘Buyer Persona’- ‘A buyer persona tells us what prospective customers are thinking and doing as they weigh their options that address the problem.’  This helps influencing the customers’ decisions based on specific attitudes, concerns and criteria that drive the customers to choose a bank or any financial institution’s solution that best fits their goal.

How do we organize, study and take meaningful interpretations from this data? Big data and Analytics are quickly gaining importance. So, what is Big data? Big data is a massive storehouse of information. Analytics will help study historic data and past trends with which experts will be able to predict future trends of the market and industry by giving valuable insights. Combination of these 2 will yield great results for financial institutions. Predictive analytics and big data basically involve studies on customer behaviour, spending patterns, expense management, life style and other variables.

Knowing customer details – their interests, spending patterns, financial goals and personal details will enable financial institutions to devise products and services that will not just solve their problems but will also resonate with them and enable a long term relationship with their financial institutions. This is what will create true value for the customer as well as the financial institution. The process is very simple and will definitely change the way customers react to marketing content that is personal and valuable. This is what every customer wants and needs. It is high time that financial institutions resort to this technique and understand the importance of adding value to its customers.

About Market Simplified: Market Simplified is a thought leader in revolutionizing and digitizing products for financial institutions by continuously innovating and simplifying finance. We empower our customers with cutting edge digital experience that is highly personalized and enhanced for the end users with our ‘Experience Engineering’ platform driven by Analytics, AI, Machine Learning and Blockchain technologies. Our clientele includes industry leaders like OptionsXpress (Charles Schwab), Currenex (State Street), MB Trading, Maybank Kim Eng, Kotak Mahindra Bank, National Stock Exchange of India and many others across the globe.

About the Author: Girijashankar is a Classical Carnatic Vocalist and teacher who loves to perform. He is also a voracious reader and enjoys writing. He is currently working as a Business Development Executive in Market Simplified.

 

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