The struggle is real
Traditional economy companies are currently suffering from a decline in revenues and profits. This is mostly caused by the commoditization of their services, as well as stiff competition from fintechs, startups and Internet players who disrupt the business landscape.
Lack of innovations
One of the main reasons for commoditization is growing lack of innovation, that is mostly caused by corporate culture and sophisticated process-based approaches, but also complex and inflexible IT systems. The typical road to new marketing campaigns or products takes many months and incurs millions of dollars in cost.
Financial institution don’t have an algorithm that take available offers and customer insight to prepare the perfect solution. Instead, they need to have a strategic framework in place to develop offers, apply a rules engine, and measure the results of real-time efforts.
All companies have data, and all companies could stand to gain from it.Monty Hamilton (Partner in PwC’s Digital Services business)
The question is, are business leaders using their information in the best way possible?
There are several challenges to face while introducing a real-time marketing in new sectors. One of the most difficult are personalization of messages, measuring the effectiveness of the marketing efforts, leveraging the data available and the coordination of communications.
Most banks and credit unions are able to establish data gathering, simple analysis or even some necessary tools for processing some data about the clients. The gathered insight may include demographics, products history, marketing response to prior actions, etc. Unfortunately, most financial organization are less than eager to adapt the big data insights.