Offer Management
The financial sector is in the midst of historic transformation as nimble, digitally native non-traditional players test the old guard, New entrants are prioritizing Customer experience and redefining long held banking principles to gain market traction and the stakes are particularly high with in todays unprecedented Covid 19 new normal environment.
Before online retailers sparked the rise of consumerization through 24/7 availability, limitless choices, and personalization, loyalty in the banking sector was built on customer trust. Today, banks continue to earn loyalty, Consumers expect a seamless digital experience from their financial providers, as they’ve grown accustomed to BigTechs in other parts of their lives. Traditional banks are being challenged to meet these expectations given that digitally native new entrants focus on customer experience from day one.
In the digital world, switching costs has become close to zero. Technology is fueling a massive shift in customer expectations. Through digital transformation, traditional banking players have evolved to provide personalized engagement and a seamless banking experience for customers. Digital convenience has become a quintessential competitive force. Building loyalty is not just through personal interactions but via digital touch.
According to Capgemini’s World Retail banking report 2020 — a focused interviews and survey with over 80 senior executives of leading banks across regions revealed that the Average customer acquisition cost for is $200 for traditional banks and $1-$38 for New age banks. In the current competitive and transparent environment, the only way to offset high acquisition cost is to increase the customer lifetime value by engaging with the customer at all possible touchpoints
An important aspect of Personalized engagement is offer Management. The days of generic, one-sized-fits-all marketing are gone. Delivering the same offer to every customer that may or may not interested is no longer a viable promotional strategy. Treating each website visitor as a separate and unique entity and engaging with them in a more complex interaction than the conventional one-size-fits-all strategy has become paramount at different stages of customer journey. Without proper Offer Management process -campaign development, offer disclosure and speed of payment which might result increase in complaints and decrease in customer satisfaction.
Offer management enables Financial institutions accurately build and link complex offers to the right audience in the right channel, right time. It enables Customers experience a reduced time to production by more than 70% and increase the number of targeted offers to market. It helps to improve conversion rates through more granular customer segmentation and offer personalization. Using offer automation solutions will improve effectiveness, efficiency and reduce errors.
