Financial firms can save time and money and drive revenue if they deliver the right message to the right people at the right time. Big data can help you know your customer, as discussed in the first two parts of this series. But in many cases, it doesn’t reveal accurate net worth and demographic information, which can give you a better 360 degree view of your customer. Having a more holistic view of your customer’s needs, wants and long-term financial goals helps arm you with the ability to offer them the right products and solutions that will help them achieve financial well-being.
With a one-to-one sales relationship, getting a feel for customers is easy, but how can a sales force execute this strategy across multiple delivery channels? The answer often lies in the data. According to Equifax’s Customer Lifecycle Management Best Practices, “Research shows that third-party data is essential to achieving the full view of customers that is so vital for effective marketing.” This means looking at the different dimensions of consumer behavior, cross-referencing them and analyzing them in order to achieve marketing goals.
Dividing into market segments
One strategy financial services organizations rely on to gather and distill disparate data is segmentation. Many firms segment their existing customer base as well as the markets in which they do business in some fashion today, but often struggle to do it in a way that is effective and actionable. Also, many times an organization doesn’t know how to shift through their own internal data and combine it with the vast amounts of rich, well-managed external data in order to gain the actionable insights needed for better decision-making.
Combining behavioral and demographic data
In the old way of doing things, banks would inspect customer accounts to see which customers are most likely to qualify for and sign up to certain products. Back when people went to one large financial firm for most of their financial needs, this approach worked. Today’s more fragmented financial market means a more creative approach is necessary for marketing efforts to yield a good return on investment.
This is where third-party data comes in.
Using multiple data points to improve marketing ROI
When banks combine the data they have on hand with third-party data, they can qualify their existing customer base in more ways and help increase marketing ROI from cross-selling efforts. For instance, banks can use products like EFX Link to help identify which of their customers are in need of small and mid-sized business financial products. Since business lending is a key growth niche, access to this information — gained by combining first-party data with third-party data — is important and valuable for financial firms.
First-party data isn’t enough to truly know your customer. While you might think you know your customers well, you can gain a more comprehensive view of them by combining your data with third-party data. Utilizing an information solution provider like Equifax to deliver customized insights, financial institutions can better tap into undiscovered revenue streams that have been hiding in plain sight all along.
Read on in part four of this series to find out about the hidden treasure in point-of-sale data.
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