Management expert Peter Drucker's adage, "You can't manage what you don't measure," holds true as financial institutions look to data and analytics to help make informed business decisions.
According to a 2019 Aite study, 83 percent of marketing executives in financial services and the insurance industry cite data analytics and big data as important to their marketing strategies. And more than half plan to increase spending on most types of data sources.
One of the main challenges for financial institutions is being able to quickly find valuable insights inside data. As data solutions become more sophisticated, financial institutions can gain greater insights about prospects as well as existing customers and members.
Financial institutions now have access to solutions that enable data customization and easier access to those valuable insights. Data can determine consumer engagement levels, provide electronic payments insights and help financial institutions develop sound business strategies.
Here are some of the insights that can be uncovered:
Consumer Behavior Trends
Understanding consumer behavior and activity can help uncover opportunities for greater engagement. Having access to data and reports specifically related to electronic payments attrition allows financial institutions to determine which consumers are at high risk. That data can then be used to uncover additional details and consistencies related to attrition, enabling financial institutions to put appropriate strategies in place.
Data can determine consumer engagement levels, provide electronic payments insights and help financial institutions develop sound business strategies.
Mass marketing may be a thing of the past. While a message might resonate with millennials, it may miss the mark with Gen Xers or baby boomers. For example, millennials may be looking for solutions to help them more easily manage financial situations they're experiencing for the first time. Filtering electronic payments users by age allows financial institutions to create targeted email campaigns and personalized messages that resonate with each group.
Ultimately, consumer behavior data provides a clearer picture of who is using electronic payments products, helping financial institutions to create a more personalized experience for customers and members.
Payment Transactions and Trends
Understanding payment trends and behaviors, including data on payments, payees, e-bills and related criteria, such as age and payee industries, can help determine engagement levels with electronic payments products. Financial institutions can analyze frequency, payment volumes, top payees, types of payees and e-bill activations to better understand where to make necessary improvements.
Electronic payments data and analytics can help visualize monthly activity by dollar-amount threshold to see if certain months perform better than others. Data insights can be used to monitor and manage adoption rates, trends and cross-selling opportunities.
Insights from electronic payments deliver a wealth of data to help financial institutions better understand consumers and prospects. Sophisticated data and analytics solutions enable financial institutions to move from a mass-marketing approach to more intentional, personalized experiences.
Increasing Engagement, Loyalty and Revenue
Understanding consumer behavior and delivering a personalized experience can increase engagement and adoption with electronic payments products, which often leads to benefits for financial institutions, such as increased revenue and lowered attrition.
Digitally engaged consumers are extremely valuable to financial institutions. Gaining a deeper understanding of electronic payments activity through data can help financial institutions determine where to invest in capabilities that engage and satisfy consumers.