Banks risk losing 1 trillion USD to digital irrelevance unless they reinvent customer experiences

Published April 21, 2021   |   
Team Crayon Data

We currently live in the age of relevance. And customers around the world expect personalized customer experiences from all of the brands they interact with. This includes their bank and credit card provider.

But what does it truly mean to be relevant to your customers?

To answer that question, banks first need to understand and overcome a new challenge: digital irrelevance. Here are 4 key insights on what digital irrelevance is and why banks need to be worried about it.

#1 Digital irrelevance is a trillion-dollar problem for enterprises

When companies fail to maintain customer relevance, they risk losing 1 trillion USD of revenue. Their customers seek alternative brands that meet their expectations, says a study by Accenture.

#2 The answer lies in highly personalized and relevant customer experiences

If there’s a single fact in today’s consumer driven world it’s this: consumer choices and expectations constantly evolve. Spamming your customers with multiple messages that do not cater to their own needs not just fails to get their attention. It also drives them away. So, the key is hyper-relevancy. Understand your customers’ needs and tastes, and personalize services accordingly.

#3 Reinvent customer experiences. Adopt new business models

According to Harvard Business Review (HBR), to succeed in this era of relevance, marketers and companies must be continuously willing to abandon the old. As new technologies shift customer journeys and expectations, they can (and should) also enhance companies’ abilities to engage with customers in the most relevant ways.

In short, businesses today can’t afford to be irrelevant. But what makes a brand relevant to their customers? Let’s start with HBR’s proposed new P’s of marketing, or as we call it: the five new P’s of customer experiences.

  1. Purpose: Consumers pick brands that share and promote the same values as they do.
  2. Pride: Consumers don’t shy away from showing off the brands they use with pride.
  3. Partnership: Consumers look for brands that work well with them and their lives.
  4. Protection: Consumers choose brands that take data privacy and protection seriously.
  5. Personalization: Consumers want their experiences continuously tailored to their tastes
    and priorities.

#4 The age of relevance is here to stay

For companies looking to create relevant customer experiences, HBR also states that a key component of becoming a living business is conveying exactly the right message, experience, or offer to customers in exactly the right context.

So, it looks like personalized digital experiences for every customer are here to stay. And enterprises need to step up their game to meet these expectations. Otherwise, they risk losing their customers to a new crop of digital-first tech start-ups have already nailed personalized experiences for their consumers.

Leverage FinTech to stay ahead of the curve

One way that banks and credit card providers can win back their share-of-wallet from their competitors is by teaming up with other FinTech companies. By leveraging the FinTech ecosystem and partnering with platforms, banks gain access to the right tech to help transform their personalization game.

Crayon Data’s is one such AI-personalization platform. It helps enterprises like banks stay relevant by understanding and profiling customer tastes based on behavior, not identity. And craft unique omni-channel experiences.

Is your bank staying relevant to your consumers? Find out now! Download the Relevance Quotient Report for banks. Get an idea of where you stand in the market against 100+ competitor banks across the world