What financial marketers can learn from Amazon about personalization
Financial institutions are working hard to improve personalization just as consumers are getting more touchy about data sharing. Yet consumers willingly share data with the ecommerce giant. A big reason why is how effectively Amazon uses consumer data. Banks and credit unions can, and must, apply many of the same methods to improve their own personalization efforts.
The intersection of privacy and personalization is a hot topic across all industries, not least the banking industry. Consumers are growing increasingly skeptical of what brands know about them and how they use it. Nearly four out of five consumers believe companies know too much. And they are questioning more often which brands they can trust to use their data responsibly.
There was a time when the banking industry could rest comfortably knowing it was solidly trusted. But trust in banks was badly shaken by the financial crisis and other more recent revelations and has been up and down since. Amazon, by contrast, is the brand that consumers trust the most with their data, according to a survey of more than 1,000 consumers our firm conducted. Almost half the respondents say they trust Amazon to use their data responsibly, putting the company ahead of banks as a whole, along with Apple, Google, and others.
This trust gap increases among younger consumers born into the Amazon era: Millennials and Gen Z admit to trusting Amazon twice as much as their own banks.
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