If you’re in the financial services game, you already know how important accurate data can be. Without it, you wouldn’t know how to assess risk, who to approve for a loan, or where you should invest your clients’ money.
But data isn’t just for the decision-makers — it’s for the marketing team as well. By using data analytics, financial services marketers can discover what their audience wants, needs and values most.
If you need convincing, read on!
The Benefits of Data Analytics in Financial Services Marketing
Better Customer Segmentation
No two customers are alike. So, marketing to them like they all came out of the same mold is an exercise in futility.
By diving deep into the data, you can break your audience up into different segments based on preferences, demographics, needs, even purchasing behavior.
This allows you to send customers the right offer at the right time. It also prevents you from targeting those who don’t want, need or qualify for certain financial products.
Increased Personalization
We’ve said it before, and we’ll definitely say it again: Personalization is everything in marketing. Treat people like they’re people, and you’ll reap the benefits.
Personalization enhances the customer experience; allows you to create deeper, more meaningful relationships; and increases engagement with your brand. And for financial services firms, those are all pretty important things.
Data analytics and customer insights make it easier to tailor your offers, messages and recommendations to individuals rather than to the masses.
Improved Customer Retention
The average cost of losing (yes, losing) a customer is $243. So clearly, you want to keep as many customers as you can.
By digging into the data, you can see exactly when, where and why any lost souls have jumped ship.
But data doesn’t just show you how many people have already gone overboard — it also tells you when they’re about to step on the plank. And if you can identify at-risk customers, you can proactively implement retention strategies that keep them safely in the fold.
A Deeper Audience Understanding
You know what your audience is saying to you, but what are they saying about you? By using data collected from review sites, online forums and your own social media channels, you can get a feel for your financial services firm’s reputation.
Word of mouth plays a huge role in marketing. So if your customers are in any way dissatisfied with your brand, you need to know ASAP so that you can solve the issue. Data can help!
Increased Customer Loyalty
There’s no shortage of financial services firms. People understand that they have choices, and they’ll go wherever they can get the best deal.
By leveraging data, you’re able to better understand your customers, segment your audience and personalize your marketing efforts. All of that keeps your audience loyal to your brand.
The Devil’s in the (Data) Details
As useful as data can be for financial services marketing teams, there are some hard and fast rules about how you can use it. Break (or even slightly bend) those rules, and you’re putting more than your firm’s reputation at stake — you can also face serious legal consequences.
This great resource outlines data protection regulations for financial services firms and recommends some best practices to ensure you remain in compliance.
Data Analysis Tells the Whole Story!
Without data, financial services marketers struggle to see the big picture. Data analysis allows you to deliver an excellent customer experience that will help you stand out from the competition!
Mischa Communications is Cleveland’s premier financial services marketing agency, but you don’t need to live in our neck of the woods to hop on board. What can we do for you?