Stronger personalization correlates with better customer relationships, greater return on investment and increased revenue. Research from Epsilon found that 80 percent of consumers are more likely to do business with a company when it offered personalized experiences and 90 percent said personalization is appealing. According to a study from Monetate and WBR Research, 93 percent of businesses with advanced personalization strategies increased their revenue.
Why personalization is nonnegotiable
Brian Henning, Salesforce practice lead for financial services at Publicis Sapient, explained that four factors are driving the need to increase personalization: higher customer expectations, massive new datasets, deprecation of third-party cookies and data privacy regulations.
With intuitive platforms, prominent technology companies have raised the public standard for a positive customer experience. Facebook, Amazon, Apple, Netflix and Google, known collectively as FAANG, understand their customers and anticipate their needs. Accustomed to seamless service across multiple channels, today’s customers expect the same from other key areas of their lives, namely where they entrust their savings and investments.
An age of alternatives
Established banks are ultimately facing a loyalty crisis as digital challengers offer platforms and services that are highly engaging, easy-to-use, and always accessible via numerous channels and devices.