Use lifestyle data to build loyalty

by: Brandon Bogler

The Age of the Consumer is a key area of focus for financial institutions (FIs), particularly when it comes to Big Data. In their efforts to satisfy today’s increasingly tech-savvy consumers, FIs are working to learn as much as possible about their needs, preferences and actions. There’s no doubt, the better an FI knows its customers, the better it can anticipate the products, services and actions that will create positive, long-term relationships.

For data analytics to work, however, it’s important for FIs to facilitate the continued movement of information. The key is to balance consumer needs with FI priorities. This means gathering and analyzing data to come up with the next best action to provide the customer with what they need or want. This could be an offer for a new product or service, or a response to a customer service issue, which also furthers the FI objectives, such as increased revenue, higher profits or improved customer retention.

One often untapped avenue of information is “lifestyle data.” Social media data falls into this category. Mining Facebook data can provide valuable insights for effective marketing.

For example, high school graduation photos on social media might mean a student loan will be needed. Understanding what’s going on in consumers’ lives has always been a useful tool for determining what and how to market to them; today, it’s simply easier to determine because of social sharing.

Social media analytics offers a high-tech way to gather and analyze the seemingly mundane “over-sharing” of personal information. An FI that successfully uses social media analytics to assist consumers during specific life events is likely to see returns largely in the area of loyalty.

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