Customer Intelligence As a Revenue Predictor

Establishing a holistic perspective of a customer could be an extremely efficient parameter when it comes to corporate growth and profitability

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In an age of increased digital sophistication, customer intelligence plays an increasingly important role in offering brands an edge over their competition. Institutions can benefit from customer centricity, consumer insights, and intelligence-driven engagement, in a world that is changing ever so fast. In order to enhance mindshare, client retention, and share of wallet, consumer intelligence is more important than ever.

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Due to the recent pandemic, financial institutions have had to become more client-centric by performing a more in-depth analysis of customer behavior.

For financial institutions, establishing a holistic perspective of a customer could be an extremely efficient parameter when it comes to corporate growth and profitability.

Customers interact with a brand through a variety of channels, including branch activity, Web activity, in-app activity, support calls and feedback. The development of mobile devices, as well as smart home gadgets, that are always linked, store and send data back and forth. Users readily disclose a great deal of information via these channels. Fintech companies can use this data to offer more tailored services for their consumers. It's an opportunity for financial institutions to combine data from several touchpoints to get a holistic picture of their customers' interactions with them.

Fintech organizations can predict and anticipate client behavior using customer-centric data created through multiple processes such as Artificial Intelligence, Algorithms, Credit Card Transactions, and Credit Scores, and several others. These companies can use this Big Data to target their clients better with relevant services. Customers tend to get more receptive with custom offerings that are tailored to them. The effectiveness of a company's user experience is used to assess its credibility and trustworthiness.

If your app/website does not work as intended or is tricky to use, it will have a negative influence on user experience and trust. As a result the stored data must be used on a frequent basis to bridge the digital divide.

The consumer experience has changed as a result of online banking. You no longer need to visit banks in person or wait days for transactions to be completed. Fintech companies have developed cross-border financial services that enable real-time data sharing. It allows buyers and sellers to trade freely, without any friction.

When it comes to financial services, fintechs must keep their windows open and be flexible enough to personalize offerings for their consumers. Modern tech facilitates fintech companies to be more agile and adapt quickly to changing market conditions.

For instance, if you have an issue with a product or service of a particular company and will need to contact customer support. And you’re trying to explain your situation to them, yet they are reluctant to understand or assist. You'd undoubtedly lose faith in the firm and stop doing business with them.

More than one-third of all clients abandon a business just after one unpleasant experience. Hence, businesses must use consumer intelligence to reduce bad user experiences. They can use customer insights to study customer interactions and deliver actionable insights to improve customer journeys.

Types of data covered under Customer Intelligence

Transactional data: The essential data pieces that inform customization algorithms come from a customer's purchasing history.

Behavioral data: This type of information reveals what your customers do on your website. Businesses use a variety of strategies to collect behavioral data, including:

  • Heat maps
  • Eye-tracking
  • Cookies
  • Market research surveys

Demographic data: Demographic information reveals who your customers are. Gender, age, marital status, education, location, and employment are all included under this. While demographic data was formerly a key factor in product selection, transactional and behavioral data are now a stronger predictor of customer preferences.

Psychographic data: Psychographics is a new way of understanding why people make particular decisions based on psychology. It looks into the customer's interests, attitudes, and behaviors to reveal information about what motivates them to buy.

Customer intelligence helps businesses in the following ways, in addition to generating revenue:

  • Behavioural segmentation
  • Modelling user flow on site
  • Geo-targeting
  • Personalized approach

Businesses can give customised services to each segment using customer intelligence. To sum up, consumer intelligence has the following advantages:

  • Increases conversions with personalized product recommendations, which improve sales efficiency and marketing ROI.
  • Builds customer loyalty by improving customer service: Businesses may overcome the difficulty of customer retention by better meeting their expectations.
  • Data-driven decisions: The most important step after gathering and evaluating customer data is to take action based on the insights derived from the data.

In addition to client satisfaction, one of the main difficulties for fintech startups would be to work harder than their banking peers, whilst creating a reliable proposition and branding.

Therefore, fintechs must aim to improve their existing customer journeys and increase their attention on experimenting and analysing consumer behavior to procure convincing and fulfilling offerings in the market. They must also concentrate their efforts towards proper implementation of initiatives and insights, which could be a tough nut to crack but would ultimately reward them.