Really Really Really Know Your Clients (Part 1)
The next generation of digitisation in financial services will propel the industry into the knowledge economy.
More specifically, financial services firms can look forward to a future of using a deeper knowledge of their clients to generate tangible economic value. How much time do your customers typically spend on your website? And what are you doing to encourage them to come back more frequently, stay for longer and use more of your services? Even if you’ve created a dynamic, customisable user-interface enjoyed by your customers to access a range of services easily and simply across multiple devices, you can still do more to service their needs digitally.
If a client spends just a fraction of their total time on your apps, the key is making optimal use of the time that clients spend away from your apps. A 2015 report by Ofcom, the UK communications regulator, found that the amount of time Britons spend online had doubled in the previous decade, largely thanks to increasing use of smartphones and tablets. This will rise further as the quality and range of available services continues to surge. Thus it is important for any business which has growth ambitions to ensure it is open to opportunities to find out more about customer behaviour via their online activity and to better understand and meet their needs, thereby increasing customer loyalty and ensuring sustainable profitability.
Let’s take the consumer industry as an example. Online retail giants such as Amazon are already well-advanced in this respect, having pioneered algorithmic recommendation engines that endorse future purchases, based on a combination of browsing behaviour and purchasing activity both on the individual and aggregated level. The difference now is that this capability is no longer confined to Amazon’s own site or apps. When an Amazon customer accepts cookies on its site, the firm is then able to collect real-time behavioural data and combine this with its existing information on the user’s Amazon purchasing preferences to make even more accurate predictions on his or her return to the Amazon site. Moreover, Amazon has the ability to place highly targeted content on other sites frequently visited by the user, for example promoting books or other products available on Amazon that fit the customer’s current interests, reflecting recent browsing history.