by Rich Edwards Mar 30, 2022

Personalization and Competitiveness

Are you reading to stay ahead of the competition?, Photo by Nicolas Hoizey on Unsplash

The latest annual Banking Review from McKinsey makes the following point on sustainable business models:

The biggest factor is a bank’s ability to deploy a future-proof business model that displays characteristics that make them attractive to investors (and customers):

  • They are embedded in customers’ lives (with more touchpoints and greater ownership and engagement), using digital channels and ecosystems to solve specific customer needs with distinctive and personalized experience—and they use the insights they gain to develop even better ways to keep customers engaged.

Personalization. It’s not just dropping in a name. It’s crafting an entire end-to-end experience that your prospects and customers will feel is catered to them, as if your entire operation is tuned to their needs alone.

And this isn’t nice to have icing on the cake functionality. McKinsey’s research shows that while 71% of consumers expect personalization in their interactions with companies, 76% of consumers get frustrated when they don’t find it. There’s significant downside to treating your prospect and customers all the same.

How are you addressing this imperative this year? How much of your time and precious budget is allocated to personalization and more relevant customer interactions? According to The CMO Survey, Banking and Financial Services companies have grown their budgets for digital and personalization by over 20% in the past 12 months, far outpacing any other category or line item.

Intimacy and the ability to provide highly relevant messages and responsive experiences for your customers is increasingly becoming the decisive factor in customer acquisition and retention.

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