Personalization is such a hot topic in the world of marketing these days. But personalization isn’t just another marketing buzzword — it’s a critical strategy for delivering a better experience for prospects and customers. Every person that visits your site, uses your app, views your emails, calls your call centers, or visits your branch is unique. Each person is looking to accomplish her own goals and has her own interests.
Currently, a personalized experience is often seen as a competitive advantage in the financial services industry, and a way to increase customer loyalty. But with advancements in machine learning, real-time processing and big data, personalized experiences are becoming increasingly common. And as consumers experience more and more personalization, they are expecting it from all businesses they interact with. In the not-so-distant future, personalization will become table stakes for marketers across all industries.
We created this infographic with industry statistics to demonstrate why personalization is an imperative for the financial services and insurance industries, and to explain why those industries still have work to do.
Financial institutions (FIs) estimate that if they could successfully offer customers an individualized experience, they would earn an additional 14% in annual revenue. And 79% of FIs consider it “very” or “extremely” important to deliver guidance to customers in real time. Clearly, FIs recognize the value of personalization. One of the key ways that marketers across industries provide personalized experiences is with machine learning, a form of artificial intelligence (AI). Half of all banking providers believe artificial intelligence will have a significant impact on their business model going forward.
At the same time, customers are experiencing personalization from companies in other industries and are beginning to demand those same types of experiences from FIs. Two in five millennials feel that the offers they receive from their banks are not personalized, and 40% of consumers say that a personalized service would change their loyalty to their bank.
Although FIs recognize the importance of personalization and the consumer demand for it, there is still work to do. Roughly 40% of all but the very largest financial institutions consider themselves “static” — which means they offer no personalization. The top two reasons cited by FIs for why they cannot effectively leverage big data to deliver better experiences are 1) data is too distributed and 2) there is a shortage of talent to analyze the data.
The good news is that 74% of banking providers believe that partnering with third parties will be the best way for them to access machine-learning technologies. To learn how Evergage can be that third party, request a demo today. And for more detail on the importance of personalization and some great examples of how financial services and insurance companies can leverage personalization, download our latest eBook, The Personalization Imperative: Insights and Examples for Financial Services & Insurance, today.