Let’s face it, you can’t turn a corner without bumping into someone spouting the virtues of big data. It’s important – essential even – to improving business outcomes and operations.
But what is it and how can Financials Services institutions benefit from it?
Big Data is essentially the analysis of large chunks of data (user information, habits, transactions, and so forth) to figure out patterns, trends, and associations. Think of it as computerized sociology: human interactions are transformed into data points that get analyzed and turned into useful information that can benefit everyone.
And information is actionable. It can be transformed into products, advertising, and targeted offers.
The most famous example of Big Data turned real world product is the Netflix Original series House of Cards. It’s probably the first show in the history of TV shows to debut and be guaranteed success. All because of Big Data.
Since the beginning, Netflix has been using customer viewing patterns to push personalized recommendations and select new releases. But they wanted to do more with that data and, what’s more, they wanted to create exclusive content. So they started paying attention to where user data overlapped and discovered that not only was the UK version of House of Cards extremely popular, but it overlapped with the popularity of Kevin Spacey and David Fincher movies. And the rest, as they say, is history.
As a Financial Services institution, you have unique access to how your clients live their lives: how they spend their money, what kind of things they insure, where they travel, and how they feel about risk. You have all sorts of insights at your fingertips that you can transform into meaningful offers and products.
A few weeks ago, we discussed how startups are using data to hone their niche and deliver better customer experiences for increased success. But that’s just the beginning. With your exclusive customer insights, you can start targeting the right customers on the right days at the right times to ensure your own success. You can follow trends all the way to the bank, so to speak.
Say, for example, you know a lot of your customers own boats. You can use that knowledge to your benefit: if you’re an insurer, you might offer special rates for the stormy season or discounts if they dock at special marinas; if you’re a wealth manager, you can create targeted advertising that features boats for a personalized feel.
And the possibilities are endless.
If the future of Financial Services is digital – and there’s no question that it is – the future of customer experience is personalization. Big Data is your roadmap to personalization through the digital transformation.
Want to learn more? Watch Ralph Silva’s talk from the exclusive Digital Disruption in Financial Services event we held in April, and discover what he and two other experts had to say about the future of Financial Services.
Because if you don’t adopt Big Data practices, if you don’t get to know your customers, you’ll be left behind.
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