The financial services industry is coming off an extended period of regulatory, reputational and risk management pressures. The resulting consolidation, regulation and consumer dynamics have created new demands on marketing. Today, to build strong and credible brands, institutions must balance acquisition, retention, and cross selling, all while keeping a nuanced view on customer value.
It’s this complexity that brings analytics to the forefront for leading financial services marketers. Only by closely examining programs and the underlying variables that influence performance are marketers able to make informed and productive investments.
Understanding customer value today: Traditionally, customer value has been established through static accounting exercises driven by historic performance. But today’s environment is dynamic and the methodology that is used to define customer value must factor in that complexity.
Looking beyond acquisition
Many factors—consolidation, ubiquitous non-brand distribution models enabled by technology, commoditization of near-identical brands and customer inertia—have resulted in a shrinking pie of customers. But as marketers turn to other value drivers, they too often rely on acquisition tools to evaluate the outcomes for activities beyond acquisition.
Managing multiple distribution channels
While institutions are consolidating, customers are fragmenting into multiple behavioral, life stage and needs-based segments, each of which engage with institutions across different communication and distribution channels in different ways.
Building credible brands
Gone is the lofty brand positioning of the past; today institutions need to focus on building relevant and credible brands across a range of new distribution channels, while also remaining sensitive to regulators and outside stakeholder interests.
Marketscience offers unmatched expertise in developing comprehensive analytics that address these challenges in order to drive significant revenue growth for financial services marketers.