As consumer demand has shifted to focus on experience, personalization is taking center stage. Customers want to feel connected to the brands they are loyal to andlike these brands really know them. They want the businesses they interact with to know their name, purchasing history, and more so they receive relevant content, products and services.
And if you think about it, personalization is no different than the types of individualized interactions we all appreciate, like when we dine out, for example. When you walk into your favorite restaurant, it’s great to be greeted by name, seated in your preferred spot with a view across the lake and then asked if you’ll be having your favorite glass of pinot.
And this personalization in marketing works too. According to McKinsey, personalization leaders have found proven ways to drive 5-15 percent increases in revenue and 10-30 percent increases in marketing-spend efficiency. This was done predominantly by deploying product recommendations and triggered communications within singular channels. So applying that to our dining example, you’ll probably ask for a bottle rather than just a glass of that pinot.
Many banking consumers show strong loyalty, but that shouldn’t lead to complacency. Continuously trying to improve the customer experience and personalize interactions—including marketing—are still key, particularly as digital interactions have dramatically increased in the last year or so. In fact, many banking customers manage their accounts almost exclusively via digital channels. And Deloitte argues that hyper-personalization is imperative for financial institutions (FIs) by enabling them to differentiate their brand, boost revenues, and improve financial inclusion.
In some way, those in the financial sector are more fortunate than other businesses since FI customers need to interact regularly as they manage their money. And there’s plenty of personal data to draw upon too. So, developing targeted marketing is an important step today that makes good sense in the FI industry.
With consumers regularly using ATMs, FIs have a built-in opportunity to drive marketing messages directly on the screen. And a marketing program integrated with your ATM business channels can show that you know what your customers need now or what they might need next. Just as important, digital personalization helps you stand out from the competition.
So, how can you have a more human approach to help your FI retain customer loyalty in a new era of mass digitalization? How do you cross that divide between efficient digital interactions and the natural human desire to connect?
The answer, of course, is personalization. With targeted ATM marketing based on your individual customer, your FI can cross the digital divide simply by being there with your customers at the ATM via personalized messages, offers and promotions. Using your ATM screens in this way helps you:
- Decrease customer churn by offering customers relevant promotions
- Increase your FI’s overall relevancy to customers, helping to enhance existing programs dedicated to nurturing long-term relationships
- Improve customer satisfaction by making them feel like you know and understand their needs and preferences—sometimes before they do
- Boost transaction value and conversion rates by presenting the right offers to your ATM customers at the right time based on data and predictive insights
- Increase revenue with a new marketing channel that puts loan offers or other promotions right in front of customers as they are managing their cash
- Gain cost-efficiencies by adding a marketing channel that has a built-in infrastructure to reach your customers and your potential customers—they actually come to you via your ATM network
Related: Delivering personalized experiences in a digital-first world