More effective data integration and management hold the key for banks, insurers, asset managers and other financial services firms to generate actionable customer insights and enhance their personalization capabilities.
Financial services organizations are notable for having big balance sheets and huge amounts of capital. The size and extent of their data holdings are just as impressive. Banks, insurers, asset managers and other institutions certainly have more than enough data to generate high-value insights about their customers, segment them more precisely and make personalized offers. But relatively few reap the benefits.
A set of longstanding challenges prevent many marketing organizations in financial services from moving the needle on key outcomes, such as upselling and engagement, relative to their campaigns. Problems related to the quality, accessibility and actionability of data make it hard to reach customers with appropriate messaging and timely offers.
Connecting data and teams for richer customer views
The underlying issue is the difficulty of integrating data in the right systems to support data-driven decisioning and the generation of actionable insights. In other words, managing the data for proper use is a tougher challenge than just getting it in the first place.
Cultural or organizational factors also play a role. To a large extent, engineering and technology folks don’t fully understand marketing and the data and insights needed to boost performance. It’s also safe to say that marketing teams don’t always speak the same language as IT or understand what’s possible with analytics and other toolsets.
These disconnects often mean that true data consolidation never really happens; data from owned, paid and earned channels, as well as first-party data, is stored in different, and often incompatible, repositories. When data is siloed in these ways, the accuracy of insights suffers greatly and marketers are prevented from gaining truly 360-degree views of customers and prospects. Indeed, most financial services firms are probably in the 180- to 270-degree range when it comes to their customer perspectives.