Intelligent Financial Customer Acquisition and Sales Using Analytical Data

Posted: 10th September 2018 08:29

For financial corporations, whether a bank, a mortgage loan company, or an auto loan provider, knowing which customers to target with marketing efforts can deliver a superior ROI. Rather than firing in the dark randomly at potential customers, analytical data collected and filtered intelligently provides valuable insights into consumer and business behavior. 

Looking at the actions of existing customers that already use financial services, these can be reviewed for insights. Predicting needs before they happen enables savvy marketers to present offers for financial services that get a higher response and take up rate.

Let’s find out a little more about this innovation.

Understanding Your Customers Better

With an analytics company like Deluxe Financial, they find the relevant data points in the millions of signals generated every day from customer actions. The spending patterns of a banking customer may indicate that they’re spending more on car repairs and a previous transaction showed a purchase at a car dealership. Putting the two together might suggest they’d be open to a new auto loan to replace their aging automobile that keeps breaking down.

When using a mix of pages viewed on a website, ads clicked on, purchases and past purchases made, a picture develops about a customer. Each new nugget of information adds a new piece to the puzzle. It becomes easier to know what each customer might want and whether something in your product range would be ideal for them.

Looking for New Customers Outside of Your Customer Database

When you’ve exhausted the marketing efforts with your existing customers, then it’s time to look outside of the customer database for expansion. The use of third-party data along with information that credit bureaus collect can provide fresh thinking about how to target likely buyers of financial products. Knowing who are homeowners in the areas that the company covers and finding signs that a homeowner is considering trading up is useful information to a mortgage broker or mortgage issuer.

A marketing approach at that time is going to deliver a better return that a less targeted one; offering a new mortgage to someone who already has one isn’t as compelling. For companies offering financial products, there’s also less need to discount prices when they are not under pressure from heavy competition for getting the timing of the offer right.

Marketing Dollars Well Spent

Rather than pursuing new customers with a mass market approach to marketing using mailers to many households in the catchment area, a superior return on each marketing dollar is achieved with a focused approach. Using analytics from spending patterns and other accessible data points, companies can improve their response rates to promotional efforts and close more deals.

Whether a small financial institution or a larger one, maximizing the ROI on marketing allows the company to turn over the marketing dollars efficiently. This provides a potential for quicker expansion because a limited marketing budget can grow along with top-line revenues when marketing is more successfully conducted, and profits leap upwards as a direct result.