Humanising finance for a digital consumer
Financial brands often have a glut of customer data, but need to use it better to create joined-up customer experiences.
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Financial services brands need to make more of the customer data they collect, so that it benefits those who use their services as well as the business.
During a virtual roundtable hosted by Marketing Week under the Chatham House rule, and sponsored by eBay Ads, senior marketers discussed how financial companies often talk about being customer-centric but actually have a poor understanding of who their customers really are.
The head of marketing for one large insurance group admitted that this was certainly the case at the business, despite the huge amount of data it holds.
He said the company culture was focused on the customer and customer service, but the business lacked a full view of an individual who might be purchasing more than one product. This is because traditionally it had segmented people based on the insurance policy they bought.
“People were only insuring one thing, such as their car, and the car was what identified them,” he said. “The company now offers home, pet and travel insurance, so not having a view of the person in the middle of all that is a problem.”
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Respond to consumer trends
Since the pandemic began, we all expect much more from the companies we interact with, and financial services brands can struggle to keep pace with rising customer expectations.
A marketing communications manager for a group of ethical investment and advisory businesses said brands must react quickly to the new trends customers are embracing. For example, sustainable investing has grown as a sector, as climate change dominates the news agenda, and consumers want to get involved for the first time.
“Culture and data management are crucial at the minute and this has meant upskilling our team to properly serve customers who want to do more ESG [environmental, social and governance] investing,” he said. “During the pandemic, customer service has become all about speed of delivery and speed of communication. People want to speak to an expert in this area and we use data to make sure their enquiries are handled in an effective way.”
What the panel all agreed on was that customers have a right to expect more from brands. Andy Harrison, eBay Ads brand partnerships manager, said the platform has had to be on its toes during the pandemic, ensuring it remains a vibrant marketplace for buyers and sellers. This has included monitoring the frequency of communication to customers, which can affect retention levels if businesses get it wrong.
Harrison said established financial services brands need to be similarly proactive, and keep improving customer experience using data, so people remain loyal.
“Whereas larger businesses can be siloed, the newer players to market are more nimble and agile. They have been built from the ground up with the customer in mind,” he said. “There are some advertising partners I have worked with in the car finance space, for instance, who have pictures on their office walls showing the full customer journey. It starts and ends with the customer – and they know exactly where the customer is in that car buying experience.”
Honest assessment
The roundtable was chaired by Marketing Week editor-in-chief Russell Parsons, who suggested that marketing can be less effective if brands do not use data directly to improve the customer experience. It can mean brands worry about the relevancy and frequency of marketing emails, for example.
Head of marketing for eBay UK, Drew Bish, who previously worked in financial services, said the sector needed to be more honest with itself. He said many brands talk a good game around putting the customer first, but this is often lost when commercial pressures kick in and the business needs to see a financial return.
Marketers need the confidence to fight for the resources required to help the business become properly customer-focused, regardless of any internal tensions, he added.
He cited his experience in a previous role of harnessing customer data to drive customer experience improvements. “We invested massively in a ‘voice of the customer programme’ to track the end-to-end customer journey,” he said.
“We needed to know where the moments of pain and the moments of pleasure were. Where were we over-delivering to customers and where were we under-delivering?”
This exercise meant he could go to the board with real customer data showing where the business was failing customers, and how it could make changes to add value, with investment decisions being data-led and evidence-based.
The canvassing of users’ views can certainly help to ensure data serves customers. The marketing manager for an online-only bank commented how its business was set up partly because bank customers did not feel their needs were being taken into account and there was a gap in the market.
“Consumer insight has always been at the heart of what we do because it helps with updating product features. It’s all about being proactive from a customer service perspective,” she said.
She cited the launch recently of a service to help customers manage their bills more effectively. This was an initiative which came directly from the customer service team.
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Added value for the customer
Bish said the financial services brands doing a good job are those that unearth the customer insight and then work hard to deliver a consistent and improving service based on that information.
“They remain focused on what they do well every single day, and they keep nudging the customer, who is getting added value,” he said. “It’s also about relevant upselling. In retail banking it could be helping people with a current account and then a mortgage. It is about exceeding someone’s expectations in everything a bank delivers to them.” With the huge amount of customer data that does exist, the panel discussed why so much online advertising appears to be so poorly targeted. A brand’s customers can feel they are being chased around the internet by ads that are no longer relevant.
Harrison commented that when it comes to personalisation and advertising strategies based on data, there has been a resurgence of context. Brands now want to advertise to people when they are in the market for different products and services; this could be fashion or items for the garden.
“We have seen an increase from advertisers who know eBay has first-party data, and that we know who our users are and what they are doing – which is usually making a transaction,” he said. “It’s useful for financial services brands to see what their clients are doing in different environments. Context has made a resurgence.”
The roundtable also discussed the positives and negatives of the demise of the cookie and how the financial services industry might benefit from an increased focus on first-party data. One participant said it could mean a return to old-school brand advertising to generate awareness, and less of an obsession with ROI and tracking.
The head of marketing for the large insurance group was adamant that the changes do provide an opportunity for marketers. “It will be better for marketing’s reputation. It goes back to building the brand, and the brand meaning something again, rather than taking a price-driven, cookie-led and spam-led approach.” When it comes to customer experience, the question was also asked whether too many advertisers are using technology for the sake of it and not being innovative enough with the data insights being generated.
The skill is combining data with the human element and a personal touch which resonates with customers. Ultimately, this will help financial services brands form longer, more mutually rewarding relationships with them.■
“We needed to know where the moments of pain and the moments of pleasure were. Where were we over-delivering to customers and where were we under-delivering?”
“During the pandemic, customer service has become all about speed of delivery and speed of communication."
Added value for the customer
Bish said the financial services brands doing a good job are those that unearth the customer insight and then work hard to deliver a consistent and improving service based on that information.
“They remain focused on what they do well every single day, and they keep nudging the customer, who is getting added value,” he said. “It’s also about relevant upselling. In retail banking it could be helping people with a current account and then a mortgage. It is about exceeding someone’s expectations in everything a bank delivers to them.” With the huge amount of customer data that does exist, the panel discussed why so much online advertising appears to be so poorly targeted. A brand’s customers can feel they are being chased around the internet by ads that are no longer relevant.
Harrison commented that when it comes to personalisation and advertising strategies based around data, there has been a resurgence of context. Brands now want to advertise to people when they are in the market for different products and services; this could be fashion or items for the garden.
“We have seen an increase from advertisers who know eBay has first-party data, and that we know who our users are and what they are doing – which is usually making a transaction,” he said. “It’s useful for financial services brands to see what their clients are doing in different environments. Context has made a resurgence.” The roundtable also discussed the positives and negatives of the demise of the cookie and how the financial services industry might benefit from an increased focus on first-party data.
One participant said it could mean a return to old-school brand advertising to generate awareness, and less of an obsession with ROI and tracking.
The head of marketing for the large insurance group was adamant that the changes do provide an opportunity for marketers. “It will be better for marketing’s reputation. It goes to back to building the brand, and the brand meaning something again, rather taking a price-driven, cookie-led and spam-led approach.” When it comes to customer experience, the question was also asked whether too many advertisers are using technology for the sake of it and not being innovative enough with the data insights being generated.
The skill is combining data with the human element and a personal touch which resonates with customers. Ultimately, this will help financial services brands form longer, more mutually rewarding relationships with them.■