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The financial services industry is fiercely competitive and businesses in this field are always looking for a way to stay ahead of the competition. One of the more recent ways financial services businesses have been getting ahead is by focusing on personalization. Are you looking to improve your own financial services business? Are you curious about what personalization is and how it affects financial services? Read on for more insight.
Simply put, personalization is a way of connecting with individuals, rather than massive groups of consumers. When consumers use financial services, they want to feel like their unique needs and interests are being addressed, rather than be given a “one-size-fits-all” approach.
Implementing personalization into a finance business can be a daunting task. After all, how can a big bank with millions of customers address the unique concerns of each and every one of those customers?
If you are going to provide a personal touch to your clients then you need to know as much as possible about your clients. There are many different ways banks and other financial service businesses can build a client profile and the more ways they implement, the more accurate those profiles will be.
Businesses collect information on their consumers from almost every interaction they have. This process often begins with their marketing campaigns. Whether the ad is digital or physical, marketers have methods for tracking what ad brought you to their website and from this step, they can begin to narrow down what kind of services you are after. If the ad you clicked on was about small business banking, then they know to target you with services related to that topic, such as small business loans or business credit cards.
With existing clients, particularly long-term clients, financial services organizations have access to much more data and can use this to further personalize their client’s experience.
Although targeted marketing plays a role in the personalization experience, it is only a small part of a much larger concept. Personalization is ultimately about tailoring services and experiences to meet the unique expectations and needs of each client.
The Royal Bank of Canada (RBC) has implemented personalization in their business through the use of an AI-powered digital banking assistant. Their AI provides real-time insights, automated savings, budgeting tools, and chatbot interactions that meet the needs of a variety of different clients. This service allows clients to get relevant, customized financial services without having to schedule an appointment or make a phone call.
The personalization of financial services is not limited to the digital space though. The data companies collect can be used to optimize and personalize in-person and over-the-phone experiences as well.
Personalization may seem like it requires a great deal of effort, but the results speak for themselves. According to a report from Earnix and Insurance Innovators, financial services companies that implemented personalization into their business strategies have seen positive results. The report states that financial services businesses using personalization saw a 60% increase in revenue per customer, an 81% increase in customer retention, an 87% increase in customer engagement, and a 75% increase in sales conversions. There is no getting around the fact that personalization is going to continue to play a large role in the financial services industry for some time.
Personalization is not the only way to stay competitive in financial services. The right education and the right certifications can take you further in your career and help you expand the services you can offer to your clients. Register now for one of our upcoming financial services courses and take your career to the next level.