Page 27 - Banking Finance January 2024

ARTICLE

3. AI-Driven Customer Service: groups. Targeted community engagement builds brand
Chatbots and virtual assistants powered by artificial loyalty and attracts customers who value a
intelligence enhance customer service experiences. personalized, community-oriented banking experience.
These tools offer real-time, personalized assistance,
addressing customer queries, providing account Creating benchmarks in personalized banking involves
establishing standards and metrics to assess the effectiveness
information, and even offering financial advice based
and success of personalized services. Here are the key steps
on the customer's transaction history and preferences.
involved in creating benchmarks for personalized banking:
4. Personalized Marketing Campaigns: 1. Define Objectives and Key Performance
Targeted marketing campaigns utilize customer data to Indicators (KPIs):
send personalized offers, promotions, and financial Clearly outline the objectives of your personalized
advice. Tailoring marketing messages to specific banking initiatives. Are you aiming to improve customer
customer segments increases the relevance of satisfaction, increase customer engagement, or boost
communications and enhances the likelihood of product adoption? Once objectives are set, identify
engagement. specific KPIs that align with these goals. KPIs may
include customer retention rates, Net Promoter Score
5. Financial Wellness Programs: (NPS), cross-selling success, and personalized service
Banks are increasingly focusing on promoting financial adoption rates.
literacy and well-being. Personalized financial advice,
budgeting tools, and educational resources are offered 2. Understand Customer Segments:
to customers to help them make informed financial Personalized banking relies on understanding different
decisions. customer segments. Define the characteristics and
needs of your target segments. This could include
6. Proactive Alerts and Notifications: factors such as age, income level, financial goals, and
Banks use customer data to provide timely and relevant spending patterns. Understanding these segments
alerts, such as upcoming bill payments, low balance allows for more effective tailoring of services.
warnings, or potentially fraudulent activity. Proactive
notifications enhance customer trust and satisfaction. 3. Utilize Customer Feedback:
Customer feedback is invaluable in measuring the
7. Dynamic Pricing Models: success of personalized banking initiatives. Collect
Personalization extends to pricing models, where banks feedback through surveys, reviews, and customer
may offer personalized interest rates, fees, or discounts interviews to understand how well your personalized
based on a customer's financial behaviour and services are meeting customer expectations. Analyse
relationship with the bank. This approach can attract feedback to identify areas for improvement and
new customers by providing competitive and refinement.
customized financial terms.
4. Track Customer Engagement:
8. Streamlined Onboarding Processes: Monitor customer engagement metrics to assess the
level of interaction customers have with personalized
Personalized onboarding experiences cater to the
specific needs and preferences of customers. Simplified services. This includes tracking usage of personalized
features in mobile apps, responses to personalized
and tailored onboarding processes contribute to a
recommendations, and overall interaction with
positive first impression and encourage new customers
personalized content.
to choose the bank.
9. Community Engagement: 5. Evaluate Cross-Selling and Upselling
Banks foster a sense of community by tailoring their Performance:
services to the specific needs of local or niche customer Personalized banking often involves offering tailored

24 | 2024 | JANUARY | BANKING FINANCE