Enhance Marketing Efficiency by Leveraging Big Data
In recent years, marketing has become significantly data-driven across many industries. However, many financial services firms have only begun to scrape the surface when it comes to leveraging the full power of big data. Most banks do rely on their existing firm data to plan marketing campaigns, but they can significantly enhance marketing efficiency if they take advantage of the data they have on hand and combine it with other data sources. By having a broader view of their customers, banks can improve their marketing performance and better target their highest value clients and prospects.
“As banks look across their customer base to find their most meaningful and profitable customers, they can benefit by analyzing their transaction data to improve their marketing efforts,” says Tyler Ronald of IXI Services, a division of Equifax. “But using this internal data regarding deposits and withdrawals is just the start. Banks can combine this known account data with third-party data to identify and target high-value customers who otherwise may have gone unnoticed.”
Banks’ blind spots
Using only their own data, banks can often underestimate the value of customers. “Banks can see that an account is bleeding more than it’s taking in and come to one conclusion, since they only see what’s on their book,” says Ronald. “If banks supplement their internal view with additional financial insights that have a broader view of consumers’ estimated investments and overall wealth, they can get a better sense of their customers’ total potential value and opportunity.”
He adds that IXI Services helps banks by providing a view of a household’s estimated total assets and investments preferences as well as survey-based demographic data to help improve direct and online ad targeting across several media outlets. “We provide a more meaningful lens to provide a better understanding of the customer’s value, which is based on their estimated investments and financial behaviors.”
The big data gold rush
In marketing, data is comparable to crude oil, with the value of third-party data still untapped but promising enormous future potential. “Many banks don’t realize that they can improve the performance of their campaigns by looking at the data they have and embracing new methods of combining it with other data sets,” says Ronald.
The push across all verticals, he notes, is the trend of finding the most valuable potential customers and investing heavily in reaching that person at the right time. “We’ve seen that data-driven marketing can provide better results, and we see that the source and quality of data always influences the success of the campaign.”
To drive sales, the first step is to identify the right customers to target. The second step is to target them in the right way. “We still find that direct mail is the most utilized and effective channel, with e-mail being another useful channel in certain situations. The key is to know when to use which medium,” Ronald notes.
Also important is to utilize several channels in a coordinated effort. “While direct mail works, we also find static display ads to the same audience can be helpful, with good conversions on click-throughs that can be targeted in sophisticated ways. On top of this, branding efforts with online video, television, radio and print can help get customers when they are in the earliest decision-making stages.”
To enhance marketing efficiency, financial firms need to embrace big data and incorporate their own data with additional insights to drive the right campaigns to the right people.
Image source: Wikimedia Commons
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