How Banks Can Transform Customer Relationships With The Power Of Data Analytics

Data has become crucial for banks to fulfil their customer commitments—such as listening to customers, developing products and services that will benefit them, and providing those in a personalised manner. Data helps banks add value by offering suitable mortgages, loans, and insurance policies at competitive pricing, deploy innovative business strategies, and adhere to multiple rules and regulations.

Yet, raw data alone is insufficient. To get precise insights from the large volumes of data that the banking industry generates on a daily basis, banks must leverage data analytics. Data analytics help banks use data in the most impactful way, revealing insights to learn more about their consumers, create predictive models, identify growth prospects, and optimise existing processes. In other words, the importance of data analytics in the banking sector stems from the fact that it helps derive valuable insights from vast data sets, enable critical company decisions, expand service efficiencies, and improve scalability.

Clearly, data and analytics are fast becoming the primary forces behind innovation in the banking industry. But what exactly is their role in improving customer satisfaction and building robust customer relationships?

Enhance customer relationships with data analytics

The main challenge before banks is to use the data generated by their customers smartly. But this is not an easy task: trying to do this manually or with basic tools would be laborious, overwhelming, and time-consuming—and ultimately irrelevant if not used in a timely manner. What banks need is an intelligent analytics solution with easy-to-use dashboards that can consolidate huge data sets, help them slice and dice the data, and visualise this data to uncover insights and trends.

A powerful data analytics platform can process customer data from every touchpoint in the customer journey—from social media to physical branches—to offer a comprehensive understanding of each and every customer. This 360-degree view can help different teams share insights, collaborate, and make informed decisions in a prompt and easy manner. It also helps them understand customer needs and preferences, take proactive steps to tailor products and extend services, and engage in meaningful communication.

Thus, in a highly digital customer environment, an end-to-end data analytics platform can offer detailed insights that drive high-value customer relationships.

Use a data analytics platform to transform the customer experience

A data analytics platform can help banks enhance and transform their customer experience by enabling them to:

1. Achieve high levels of personalisation

A CRM-integrated data analytics platform can help you demystify obscure data patterns and transform transactional customer-agent interactions into high-trust relationships. This data can be used for targeted marketing, focusing on clients by their unique spending patterns. This helps create a more detailed perspective of target client groups based on their worth, moving beyond simple segmentation. Plus, by using sentiment analysis to analyse client behaviour on social media, banks can build credit risk assessments and give customers customised products.

2. Enhance customer loyalty

In the post-pandemic economy, businesses across industries, including banks, are finding it difficult to gauge and drive customer loyalty effectively. Traditional tools such as surveys often prove to be expensive and limiting in understanding customer sentiment.

With the help of data analytics, you can build AI-based predictive models to understand customer engagement across all touchpoints. This will provide a clear idea about channel utilisation, frequency and nature of interactions, including product usage and cumulative revenue. Platforms such as Tableau are designed to run such predictive models using both quantitative and qualitative data sources, including natural language processing of interactions at contact centres.

With the help of such insights, you can redirect customers with a particular problem to the right contact centre agent and identify meaningful patterns to ultimately create better products and services. In real-time, your agents can make practical recommendations and display relevant product information to customers based on their interests and actions. This will drive repeat visits and build customer loyalty.

3. Ensure maximum customer data security

Compromised data security is among the top factors that can negatively impact customer satisfaction and customer relationships. You can strengthen the security of every transaction by using a data analytics platform to audit details such as payment history, device details, channel source, and location, among others. This can significantly enhance the potential of advanced payment security features such as 3DS 2.0, two-factor authentication, and risk-based authentication.

Plus, it lets banks identify anomalies and flag them in real-time, significantly reducing chances of fraud and data breaches.

Maximise revenue per customer with data-driven insights

In an increasingly digital world, customers expect banks to plug the gaps and provide smooth, individualised experiences. Banks must be able to recognise and predict their customers’ demands so that they can respond appropriately. The key is to understand the data that customers share—and take meaningful action.

With Tableau, you can empower your employees to spot trends, predict outcomes, and make smarter decisions. Tableau lets you manage risk with deeper insights and maximise your marketing spend and ROI by evaluating connected data from all angles. By doing away with data silos and using intuitive dashboards and precise forecasts, Tableau lets you optimise operations and transform actionable data into measurable growth.