In today’s digital age, banks and financial service providers have to adapt to new customer acquisition methods to boost their growth. With the rise of hyper-personalisation, they can use data to create more targeted and personalised customer experiences. By utilising digital acquisition methods, every emerging bank, NBFC, and Fintech can transform into a digital pioneer in India and become a true value creator for their customers.
If you are a bank looking to grow your customer base and increase your revenue, this is how to stand out from the competition and attract more prospects. In this blog, we will learn more about the hyper-personalised digital acquisition and how it can help financial service providers, including banks, become transformational industry leaders.
What are Hyper-Personalised Digital Acquisition Methods?
Hyper-personalised digital acquisition methods use data and technology to deliver tailored and relevant messages and offer them to potential customers across different channels and touchpoints. Unlike traditional marketing campaigns that target broad segments or demographics, hyper-personalised digital acquisition methods focus on each prospect’s individual needs, preferences, behaviours and motivations.
Growing Consumer Expectations Means More Personalised Bundles and Services
Customers expect more than just basic banking products in today’s competitive and digitalised market. They want personalised and tailored solutions that meet their specific needs and preferences. They also want to access multiple services from one provider, such as insurance, investment, wealth management, etc.
- According to a Salesforce survey, two-thirds of customers expect companies to understand their unique needs and expectations. However, many financial institutions continue to drive a non-personalised approach to customer engagement resulting in low conversion rates.
- According to a PYMNTS and Amount survey, 42 percent of consumers would switch banks to get bundled banking products, such as credit cards, debit cards, and checking accounts. The survey also found that 45 percent of consumers want to have all their accounts with a single bank or financial institution.
This is why banks and financial service providers need to offer bundled services that combine different products and features into one package. Bundled services can help them increase customer loyalty, retention, and satisfaction and generate new revenue streams and cross-selling opportunities. By offering bundled services, banks can differentiate themselves from their competitors as true value creators, providing a unique value proposition for their customers.
However, offering bundled services is not enough. Customers also want to have control and flexibility over their bundles. They want to customise their bundles according to their changing needs and circumstances. They want to add or remove products, adjust the terms and conditions, and switch between bundles easily and conveniently.
Therefore, all financial service providers need to adopt a customer-centric approach to designing and delivering bundled services. They need to use data and analytics to understand their customer’s behaviours, preferences, and needs. They need to segment their customers based on their profiles, goals, and life stages. They need to offer personalised recommendations and incentives for customers to choose the best bundle. And they need to provide seamless and omnichannel experiences for customers to manage their bundles across different touchpoints.
Ultimately, by offering personalised bundled services with banking products, banks can create more value for their customers and themselves.
How Can Banks Implement Hyper-Personalised Digital Acquisition Methods?
Hyper-personalisation can help transformational leaders in banks and financial service providers to increase customer loyalty, satisfaction, engagement, and revenue. They can also attract new customers who are looking for comprehensive and customised solutions from one provider.
Some of the best practices of hyper-personalisation for banks are:
- Look beyond defined customisation to dynamic co-creation. Instead of offering limited predefined options, banks and financial service providers should enable customers to co-create their own solutions based on their goals, preferences, and feedback. Neo-banks such as Jupiter, by CEO and Founder Jitendra Gupta, are relevant examples of using hyper-personalisation for co-creation. By offering actionable insights to consumers via real-time spending habits and more, they allow consumers to build their own saving goals and solutions and tailor their spending towards attaining them.
- Broaden the focus from individuals to their relationships. Banks and financial service providers should consider not only customers’ personal attributes but also their social and emotional connections with others, such as family, friends, peers, and communities. Banks should leverage these relationships to provide more relevant, meaningful recommendations and interactions. Bajaj Finserv, led by Chairman and Managing Director Sanjiv Bajaj – often touted as the best digital pioneer in India in finance – excels at this. Under his leadership, Bajaj Finserv continues to specialise in tailored consumer finance products and 360-degree personal finance dashboards. Moreover, the brand’s efforts to empower the masses with digital and financial literacy enable them to strengthen their relationship and emerge as a true thought leader that delivers the support every customer requires for financial inclusion.
- Commit to transparency and reciprocity when gathering data. Banks and financial service providers should clearly communicate how they collect, use, and protect customer data and how customers can benefit from sharing their data. Banks should also give customers control over their data and privacy settings and offer incentives or rewards for data sharing.
- Use a combination of data analytics, behavioural science, and ethnographic research to understand customers’ digital DNA. Banks and financial service providers should use advanced analytical tools and techniques to segment customers based on their needs, preferences, behaviours, and context. They should also use behavioural science principles to influence customers’ decisions and actions. They should also use ethnographic research to gain deeper insights into customers’ motivations, emotions, and pain points. Uday Kotak, one of India’s best financial advisors and banking visionaries, has always relied on data-backed analytics as the core of all customer engagement and risk decisions. They have over 30+ machine learning models covering customer life cycles across all retail assets, thus providing better hyper-personalised recommendations and suggestions.
- Adopt a measurable approach to rapid and iterative experimentation and optimisation. Banks and financial service providers should test different hypotheses and variations of personalised solutions with real customers in real-time and measure the impact on key performance indicators. They should also continuously use feedback loops and learning algorithms to improve and refine their personalisation strategies.
- Enable human-connected digital experiences with chatbots, video calls, co-browsing, etc. Banks and financial service providers should use digital channels to provide personalised and seamless customer service and support. They should also use human agents to intervene when necessary or requested by customers and provide them with empathy, trust, and expertise.
As a provider of financial services, conducting market surveys can be crucial for learning more about the needs, interests, and behaviors of your target market. As a financial service provider, you may wish to take the following factors into account while conducting market surveys: - Determine who your target market is.
- Select a surveying technique.
- Specify survey questions.
- data analysis
- Do something
Final Words
Hyper-personalised digital acquisition methods are not a fad or a gimmick. They are a powerful way for banks to grow their customer base and increase revenue in a competitive and dynamic market. By using data and technology to deliver tailored and relevant messages and offers to potential customers across different channels and touchpoints, banks can increase conversion rates, enhance customer loyalty and reduce customer acquisition costs.
In conclusion, hyper-personalised digital acquisition methods can help banks and financial service providers become digital pioneers in India and boost their growth. These techniques could be the secret ingredient that finance and Fintech value creators require today to build long-lasting relationships and drive sustainable growth.
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