FS firms have access to an awful lot of data. And for the last few years, that has resulted in a drive for personalisation – leveraging data sets for personalised communications, loyalty schemes and content for example.
The Accenture study ‘Hello You’ shows that in the motor/home insurer market, for example, 74% of customers are happy to share personal data with FS providers in return for a more personalised service. That number drops to 65% for life insurer/ pension providers and 54% for banks.
There is still plenty of scepticism. Public data breaches and the impact of regulation such as GDPR have prompted a more cautious attitude to how data should be used.
There is muddled thinking around the best approach. A survey conducted by Experian found that 87% of customers found it acceptable for businesses to use personal data. A McKinsey survey suggested personalisation – steered by data – can increase company profits by 15-20%.
At the same time, as the Accenture study states, “customers are increasingly aware that their data has a monetary value, and are only willing to share it in return for specific benefits.” Only 14% of FS customers are comfortable with providers monetising their personal data.
Seemingly counter-intuitively, the answer to remaining ‘impersonally personal’ could lie through AI such as chatbots, able to handle the day-to-day requests of FS customers efficiently and quickly – ideally in a frictionless interaction.
Indeed, Carter Murray’s own research shows that 49% of FS professionals believe the move towards giving customers more control of their data is driving marketing customisation.
Or there might be a more manual approach – backwards testing a customer to see where they came to you and at which points they interacted with your channels. Their path along the funnel can be recorded and compared with others, showing client and prospect patterns and greater client understanding in general.
But there is a spectre of a different kind of technology, transforming the way in which customers interact with their finances: blockchain.