When it comes to inspiring loyalty in their customers, most of whom are constantly connected through mobile devices, financial institutions face a tricky task.
That’s in large part because these tech-savvy consumers worry about their data privacy:
- 89% of American adults are concerned about online data security
- 43% do not trust businesses with their personal information
- And while 73% of consumers are satisfied with their financial services loyalty program, 53% have dropped out of at least one program in the past year, across all verticals including banks
But leveraging data to boost bank’s customer loyalty is possible, as Bram Hechtkopf, Kobie’s Vice President of Business Development and Marketing, wrote in a recent Bank Systems & Technology article called How Financial Institutions Can Use Big Data and Converged Data Sets to Improve Customer Loyalty. Bram suggests that banks and financial services companies:
- Think like other verticals, marketing themselves on what they offer that makes them unique
- Adopt gamification elements to strike an emotional chord and give customers a fun experience
- Partner with companies in other verticals, such as retail, in order to glean customer insights from transactions
So while striking the right balance to relieve customers’ data anxiety and give them a great experience can be challenging, when done right, the results can be impressive.
You can read the entire article here and we encourage you to share your thoughts on banks’ use of big data in their loyalty programs in the comments section.
