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Posts Tagged ‘CRM’

Banks, big data and doing the right thing

July 21, 2013 Leave a comment

How comfortable are we about our banks mining personal data?

Banks around the world are wrestling with the complexity and the opportunity around big data as a way to deepen their relationship with customers online.

According to a study earlier this month by Infosys nine out of 10 people would be happy sharing some data with their bank if they received more customisable offers or experiences.

The study compared consumers attitudes to sharing data with retailers, banks and doctors and, probably predictably, banks came out as slightly behind the other two sectors when it came to data trades.

However, despite the finding above the study clearly shows consumers are in some conflict over the benefits and drawbacks of banks using big data.

Almost half  (49%) also say they do not want their purchase and transaction data used to offer new services based on their habits but, almost in the same breath, 48% of bank customers would be happy for the bank to use email or social media to provide them with updates or insights.

The study also finds consumers are more concerned with their account security. Around four fifths (82%) want their banks and financial providers to mine their data to detect anomalies from identity thieves, with the same amount (82%) expecting their banks to already be doing this.”

It is such an important issue that just over three quarters (76%) agree that they would consider changing banks if one offered assurances that their data and money would be safer in their systems.

Financial services futurist – and co-founder of MovenScott Bales has an interesting theory that following Edward Snowden’s revelations the strength of feeling around how our data is used could create a new social and political movement around transparency.

Digital natives will come to demand complete transparency on how their data is being used not just by governments, but by corporates as well.

He says: “The reality of the modern world is that if your doing something wrong behind closed doors. The Facebook Generation will find out,  they will share what your doing, and you will be held accountable.”

The Infosys study shows consumers expect better deals from retailers in return for sharing personal information and better attention from their doctor’s office for a similar trade. But banks don’t have a great track record in utilising what they know about the customer: e.g. “Would you like insurance with that?”

Post-GFC, trust in banks generally is going to take some time to recover – particularly in Europe and the US where bank failures have destroyed consumer confidence. One UK survey predicts it will take a generation before banks are trusted again.

How banks use big data to interact with their customers online (and by online I really mean mobile) in the next few years is going to be critical to the relevance of banking and the securing of trust in the minds of a new generation of customers.

There is an amazing opportunity for banks to use the data opportunity to transform their customers online experiences for the better. Instead of going down the retail route of using the data just to flog more products what if banks decided their focus would be purely on using insight to create ways to make customers richer; safer and happier?

But above all there is an incredible opportunity for banking to use big data in a way that embraces openness. That combination of deep insight and transparency could be the difference between banks continuing to be relevant to a new generation of consumers. Or not.

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Why our social media strategy is just wrong

June 6, 2011 2 comments
Role of social media

Why businesses do social media

The chart above articulates, for me, the reasons why businesses, particularly financial institutions, are involved in social media. Right now we are primarily there for customer service reasons. And that’s because our customers are already there – they beat us to social media sites like Facebook and Twitter a long time ago, and we followed because we had to. We can’t not be where our customers are, and we’re reacting to their needs as best we can.

We try to gauge sentiment but, as I discussed in my previous post, the tools aren’t around at the moment to meaningfully allow us to really gauge sentiment  based on social media activity. The data is there, for sure, but it’s so vast and unstructured we struggle to make sense of it.

Most of us use social media to support our brands. Some do this really well – but most of the time we’re so pre-occupied with trying to service customers in social media we don’t step out of the reactive space and move into the leadership space. And to really support your brand well you need to be leading, not reacting.

Some of us try sales and marketing but in social media channels we generally end up giving our recipients blunt-force trauma. Standard CRM or, even worse, DM marketing techniques don’t go down overly well in social media. It’s all just too obvious and crude – like a desperate pick-up line before the slow finale at the school dance.

Current to future state Social Media

Our social media strategies need to evolve

The vast majority of business activity in social media currently is supporting customer service. And this is an unsustainable strategy based on reactivity which needs to change, fast. We need to start leading.

Businesses (and banks in particular) operate social media channels like an online drop-in centre where unauthenticated people raise issues publicly that we move to a voice channel after authentication. It’s like a front-desk where you ring a bell and get your issue rapidly dealt with as they get a not too dissimilar priority as escalations to the CEO office.

But because most of us need to authenticate customers to be able to solve their problems, dealing with a customer in Facebook or Twitter is very hard for businesses. We need to move them into an authenticated channel – “e.g. DM me your number” where we can better meet their needs.

Someone who knows this only too well is Esteban Kolsky . In this video interview (10 minutes of pretty spot on commentary) Kolsky makes some incisive statements around the conundrum of dealing with customers in social media channels.

He cites that less than 4% of complaints are resolved via Twitter.  

I paraphrase him, but his argument is: “(In Twitter) You find customers who want to complain, they would do it anyway, they just get better escalation by doing it in Twitter. I never met a customer in my life that could explain the situation in 140 characters, let alone have the problem resolved in 140 characters.”

This resonates with me and it’s a situation where a lot of us find ourselves. And I don’t believe it’s sustainable at all.

Banks, in particular,  should be leveraging the golden opportunity of social media around data and shifting the focus from 1-2-1 customer support to brand and sales supporting and gauging customer sentiment. We should be putting our business information and knowledge management teams onto this right now.

Because the biggest issue today with social media strategy is that organisations either don’t get it (admittedly less and less of them) or are managing it in a completely unsustainable way – and I think that’s most of us.