Financial services marketing refers to the deployment of various marketing strategies by marketers to acquire new customers or retain the existing ones. As a marketer, if you work in the financial services industry, you understand how challenging it is to stand apart. Our customers seeking financial marketing assistance come to us with a versatile idea. Most of the marketers wish to try new ideas to attract new consumers or keep existing ones.
What is a CDP?
Customer Data Platform is a packaged software that creates a persistent, consistent customer database that is accessible to other systems. Companies today have more data than ever before. There is everything from demographic data, transaction data, and product usage data to behavioural data, profile data and attitude data. Most of the time, data storing happens in silos. It typically means data dispersion across multiple systems, teams, and channels. It becomes challenging to make sense of the due to this dispersed structure. Acting on the data and creating a consistent consumer experience across all channels becomes even more difficult. Companies have a big opportunity with data and vertical CDP, but many of them don’t know how to collect it or use it for commercial purposes.
Benefits of Vertical CDP
1. Get a 360-degree perspective of your customers — A vertical CDP is aggregation of data from many sources to produce a consistent consumer image. As a result, as a marketer, you will have a greater understanding of your target demographic and their behaviour.
2. Increase transparency in your marketing activities – It can be tough to determine the true expenses and benefits of marketing campaigns. A CDP allows you to know exactly how much you’re spending and how well each channel and campaign is performing. Your digital marketing activities will be more transparent as a result of this.
3. Gain insights that help you make better decisions — Gathering, evaluating, and acting on consumer data can help you make better, more fact-based decisions. Your organisation will be able to respond to market and client developments more quickly.
4. Concentrate on business benefits – Many marketers and analysts today spend a significant amount of time collecting and analysing data. You will have more time to build profitability. Providing better client experience is accessible by automating this process.
5. Improve the customer experience — Having a 360-degree customer view allows you to provide a unified customer experience. We utilise more channels and devices than before, and we want the same experience. Vertical CDP makes it possible.
Vertical-Specific Customer Data Platform
Poorly structured and disconnected data is not just a “Customer Experience” or “Activation” problem
It’s not an issue related to digital marketing. Certainly, the nature of the first data sets collected is marketing-oriented plays a key role. The combination of high-volume, high-velocity behavioural data with mobile and web assets from a wide range of sources brings great results.
As a result, cross-device analytics and experience/orchestration activation have risen to the top of the CDP use cases list.
However, digital marketing isn’t the sole application for structured data.
Let’s look at banks as an example. There are some advantages to structuring bank data sources:
1. Product teams start getting high-quality real-time data as they design new products or create up-sell/cross-sell offerings
2. Data governance across the organization becomes centralized and simplified
3. Analytics teams can start developing a nuanced, long-term understanding of users and start offering products to a user that they may otherwise drop or ignore
Benefits of Vertical CDP
Data models
A financial CDP delivers a detailed data model that contains financial services entities, attributes, and relationships. This saves substantial deployment time and can incorporate best practices to educate new CDP users. Segmentation, predictive modeling, personalization, reporting, and other system features can take advantage of the data model, enabling these to also be more closely tailored to financial services needs.
Core system integration
A financial CDP will have prebuilt connectors to common core systems. These will still require configuration but that takes one to two months, compared with three to six months to build and test a custom connector. The prebuilt connectors are also able to take advantage of specific data models and capabilities within each core system, enabling more powerful interactions with the Vertical CDP.
Analytics and campaigns
A financial CDP delivers good libraries of standard analytics, reports, and campaign designs. These will draw on the standard data model, incorporate standard predictive models, and cover common challenges such as cross-sales and churn reduction. Without prebuilt libraries, each of these items could take weeks to months to develop, sharply limiting the number of programs that can be deployed quickly after the CDP is in place.
Security certifications
A financial CDP will have been designed to meet industry security standards and will have already achieved the required certifications. The vendor will also have prepared other materials that are commonly requested by clients’ IT and security teams. This can save months off the time spent on internal reviews and approvals, as well as increasing confidence of all parties in the system.
How financial services businesses can harness the power of a Vertical CDP
Capture:
Every connection with a consumer generates a data point that provides a vital storey about their journey to buy. However, with so many potential touchpoints, some organisations find it difficult to collect all of this information. Businesses must ensure that they monitor the entire path, from form interactions on your website to in-branch meetings, or brand exposure from an affiliate to engagement with an email campaign. Vertical CDP employ cutting-edge technology to collect and track data from all accessible sources. Some of them include both online and offline channels like devices, channels. The process optimization is critical to streamline this process and ensure to track each stage of the customer experience
Integrate:
Even if you’re effectively documenting client interactions, most firms keep this important data in discrete data silos, which means different channels and devices are treated as independent entities rather than interconnected ones. What’s the end result? Businesses make channel decisions without considering the impact on other channels. A Customer Data Platform can combine and unify various data points, breaking down these lethal data silos to produce a holistic image of the customer, just as it can capture each data point.
Identify your customers
Firstly, capture and integrate your diverse data sources in financial services organisations. This lets you to get control of their data. However, integrated data is useless unless you know who it belongs to. The next step for firms that want to completely understand their customers is to connect their numerous data sources. The link is generally anonymized data (such as which affiliate website was utilised to visit your website) to known identifiers like an email address. Multiple visits – across multiple channels, sessions, and devices – are linked to one person in this way. Eventually, this allows financial services marketers to gain a better understanding of who specific customers are, where they came from, what they viewed, and how they interacted with your channels on their way to purchase.
Understanding your costs
Businesses must strive to obtain an idea of what each of these channels costs – and which ones bring in revenue – now that they have this insight of how clients move across marketing channels. They will remain ignorant to what actually counts in a business: spending and return on investment if they do not do so.
Takeaway
Customer data is critical for decision-making and is becoming increasingly vital in marketers’ capacity to better their marketing efforts. Financial services businesses will remain blind to who their customers are and how they interact with their marketing channels on their path to conversion unless this information is captured, stored, and integrated effectively. Without this information, they will be unable to lay the groundwork for more optimised omni-channel experiences. At appICE, we help businesses to leverage this granular, single customer perspective to do proper attribution. It also includes the attribution cost and value of each of these marketing touchpoints, lowering the cost of client acquisition and retention.
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