How AI-Powered Digital Banking Can Transform Customer Segmentation and Conversions
- Collections, Product and technology
Customer experience is a crucial element of digital banking, but it’s never been more important than it is today. As consumers have grown more demanding and technology has improved, the bar has been raised on what people expect from their banks and financial institutions.
A Capco study found that 72% of customers consider personalization key in digital banking, and those organizations with non-personalized approaches run the risk of losing up to 80% of their customers.
This means that financial institutions need to have a solid understanding of each individual’s unique needs – and then deliver on those needs in order to stay competitive.
That’s why AI-powered digital banking is so important. AI can help organizations identify the needs of their customers and tailor their services accordingly, resulting in happier customers and more successful businesses.
It can also:
- Improve customer segmentation with predictive real-time analysis.
- Increase conversions by providing a highly personalized service based on the customer’s preferences and behaviors.
- Reduce operational costs and increase efficiency through automation.
- Enhance fraud detection and regulatory compliance
In this article, we’ll explore how AI-powered digital banking is revolutionizing customer segmentation and conversions, and explain how your business can take advantage of it.
How AI-Powered Digital Banking Can Transform Customer Segmentation and Conversions
Better Targeting with AI-based Customer Segmentation
Traditional customer segmentation methods rely on manually created profiles that are then applied to test groups in order to determine the best target audience for each campaign. This process is time-consuming and expensive.
AI-powered digital banking has changed this by allowing companies to access powerful tools that make it possible for them to create highly accurate customer segments based on their interactions and behavior. These tools can also be used for creating new segments that can help companies better understand their customers’ needs so they can tailor their services accordingly – from marketing to collections.
This kind of targeted approach is especially important for financial organizations that want to grow their customer base:
A few months ago, we partnered with BRP, one of the leading local banks in Indonesia, to help them create more granular customer segments and increase conversions.
Their legacy systems and lack of tools for collecting customer data were hurting their ability to offer personalized experiences that would help them retain customers.
After using our AI-powered Customer Data Platform (CDP), they were able to collect real-time insights from their customers’ interactions and lifecycle stages in just a few clicks, then apply those insights to create new and highly targeted customer tags for segmentation.
In just 5 months, BRP was able to reallocate resources toward these high-value segments and double its customer base.
Predict Consumer Demands through Real-Time Analytics
By collecting data from all available sources, AI can determine how a customer segment feels about its bank’s products and services. This means that you can create personalized offers for your customers based on their behavioral patterns, allowing you to give them what they want at just the right moment.
The process involves analyzing data such as consumption and visit behavior, payment history, career, geolocation, and social relationship.
The data is then fed into an algorithm which uses machine learning to identify patterns and opportunities. The algorithm learns from these insights and makes predictions about future behavior for each customer.
In marketing, these predictions allow financial institutions to tailor their advertising campaigns to suit each customer’s needs and interests and get better results.
For example, Mindigital’s Media Advertising Optimization tool uses machine learning to continuously optimize the results of our clients’ spend and ensure high acquisition rates. Clients can access their consumer data and campaign performance from one dashboard, but advertising plans can be adjusted to optimize automatically based on your KPIs.
This is also an incredibly powerful tool for businesses in the collections industry. It allows businesses to make informed decisions about their collection policies and practices, identify which customers are likely to become delinquent on their payments and take steps to prevent this from happening, decrease the amount of money spent on collection efforts, and improve the overall debt collections performance.
Omni-Channel Hyper Personalization to Drive More Conversions
Omni-channel hyper personalization is key to driving more conversions and providing your customers with a seamless experience.
Customers expect to be treated as individuals, not just numbers in a database, which means delivering tailored and relevant messaging at the right time.
This kind of hyper personalization needs to be used across multiple channels: web, mobile app, chatbot, telemarketing, email, WhatsApp, SMS – whatever works best for the customer at any given time.
The only way to achieve this is with an AI-powered digital banking solution that allows you to automate and personalize each step of the customer journey.
The result is a better overall experience for your customers because they receive content that’s tailored specifically to them – content that they actually want to engage with, which increases conversions.
How Can Banks Make the Most of These AI-Powered Digital Banking Solutions?
Financial organizations need to understand the potential of AI-powered digital banking solutions to stay ahead of the curve. But in order to make the most of them, they need to partner with a digital banking enabler with proven success, cutting-edge technology, and a consumer-centric approach.
Mindigital Global provides banks and other financial institutions with an AI-enabled digital banking solution that helps them keep up with changing consumer demands and innovate faster than ever before. We use state-of-the-art technology to give you the tools you need to deliver an exceptional customer experience and drive growth that can seamlessly integrate into your existing systems.
By partnering with Mindigital Global, you’ll be able to automate and streamline your data collection for segmentation and use our drag-and-drop Automation Center to build event-triggered and fully personalized omnichannel customer journeys to increase conversions.
Speak to one of our sales representatives today to learn more about how we can help you improve your operational efficiency, grow your customer base, and maximize your digital banking strategy.
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