Behavioral Profiling in Banks with Cadence

Every organization, enterprise, business revolves around its customers. We build practices, processes and experiences around our customers to deliver more value to them and to enhance their customer journey. But who are these customers? We might know the customers who generate the maximum profits and who are loyal towards our services but do we really “know” them, know them well enough to understand their behavior and reasons why they choose a particularservice.

Customer profiling is a simple tool that helps us understand customers better and gives us insights to increase business with them. This tool is also beneficial for targeted marketing and assists in driving sales. In the banking industry, it is crucial to understand the “How” and “What” nature of the customers. This helps us analyze the type of items which were purchased, how frequently was the purchase made and the average transaction value. Banks need to take a good look at their customers, examine what customers want at that particular time, and analyze their products and services to serve better value to the customers and create a differentiator from its competitors. Customer satisfaction has never been more important, in the changing times, customers still demand personal relationships with their banks and the data collected from profiling helps relationship managers deliver better services to the customers.

Banks have gone through multifold changes, the crisis and the revival from it, these changes have generated the need to understand the customers better and group them not only in terms of demographics but also evaluate behavioral factors like aptitude, education, occupation, location, likes, dislikes, social presence etc. Once the customer behaviors are identified and grouped, it is easier to see the distinctions between each customer segments within all of the bank’s product lines. These patterns can be regularly identified and used to predict likely customer behaviors in many scenarios for short and long term. It is seen that many customers do not prefer to go to the bank anymore, instead opt for online banking, whereas few customers still feel the need for face-to-face contact with their relationships manager. These individual needs of the customer can be understood, and value services can be provided based on their specific needs.

Customer behavior profiling can help in taking effective decisions and determine the most accurate investments. The data collected will help in growth options and in planning marketing schemes around the predictive behavior of the customers. The benefits of behavioral profiling include increase in revenue, increase in loyal customers and in gaining a competitive advantage. Banks which have still not jumped into the path of using big data, need to help their CMO by providing them with regular processes which analyzes customer data and manages the information through statistical modeling and learning patterns, reporting historical and real-time customer information.This information is of immense value to the CMO to accelerate targeted marketing, personalized services, timely offers and improved customer experience.

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