January 09, 2017

Using A Data Driven Approach To Personalize The User Experience In Financial Services

 

Do your clients get a good digital customer experience? In a study of web users by AOL, the top two responses confirmed that people wanted to be inspired by fresh ideas and feel good online.

With challenger banks and other fintech startups reshaping the customer engagement process, you can’t afford to create a user experience (UX) that’s impersonal or difficult. You need an easy way to adjust content and stay relevant in a competitive market.

“It sounds provocative, but finance doesn't have to be so formal,” wrote Alex Kreger, Founder and UX Strategist at UXDA. “We all know that digital solutions will reinvent it and make it more human-centric.”

So How Do You Develop A Personalized User Experience? Follow These Four Steps:

1. Understand your target customers by gathering first-party data, plus third-party information about consumer behaviour. Some firms already aggregate data into a ‘single customer view’ that’s ideal for personalization.

2. Guided by your business strategy, create a UX plan that can be tailored according to your data. Then use a personalization platform such as Knexus to make individual consumers’ experiences more relevant.

3. Plan marketing and content to ensure that your process, digital assets and tools assist you in putting clients’ needs first. Remember, it’s about personalized financial services. Begin with a customer segment, then promote products that suit.

4. Finally, measure and review progress against your key performance indicators. These also allow you to respond quickly to consumer requirements when they change.

Making A Great Customer Experience

Current technology is very efficient for data collection, which helps you develop personalization in the financial services industry and determine what product to offer an individual at a specific time.

At Knexus, for example, our data-driven approach includes transaction history (online or in-store), behavioural information, analytics, CRM and more to build up an understanding of the customer.

According to Darcy Hoffman, Senior Strategy Director at Merkle, when data is used to full effect, “it reveals powerful insights, enabling marketing to evolve from campaign thinking to a true dialogue that allows brands to push out messaging that engages and encourages interaction.”

A personalized UX brings more authenticity and a better relationship between banks and their customers. Despite relying heavily on software technology, challenger banks are keen to show their personal side. However, other corporations can learn from such examples to increase sales and client loyalty.

Cut Costs While Adding Value

Another benefit is that automated content selection and delivery can reduce costs. Digital tech also simplifies the UX to show only the content that’s necessary at the time. This adds genuine value to your service.

“The digitization of finance changes everything,” says venture capitalist Simon Yoo. “The way we produce, consume, curate and share content today is fundamentally different. The way with, and speed at which, enterprises interact with their customers is the test of survival.”

By combining multiple data sources, you will understand what your users want. With platforms such as Knexus you can automatically match and deliver the best content and employ machine learning to predict future behaviour.