The Power of Predictive Analytics in Helping Banks Build Excellent Customer Relationship

Wouldn’t it be great if banks could foretell which of their customers would be a perfect potential buyer for their latest credit card or home loan? Well, Predictive Analytics can help banks do exactly this and much more.

Banks deal with voluminous streams of unstructured big data. Using cutting edge social media analysis tools and Predictive Analytics tools in particular, banks can closely monitor their customers’ banking behavior; depending on which they can pitch new offers and promotions with greater success. 

A banks’ marketing department is often faced with intriguing questions like these –

•   Which customers would opt for what promotions
•   Would combining offers on loans and credit cards be a hit  ?
•   Which offers and promotions would attract new customers

Similarly, the bank’s operations manager would want answers to questions relating to detecting and identifying fraudulent customers, credit card faults, and account mismanagement. He would also want to identify and reward the banks’ long standing, loyal and ‘bank-perfect’ customers.

Predictive Analytics helps banks find answers to the above questions. From the time a new customer makes his first transaction till he turns into an influential brand advocate for the brand, banks can use Predictive Analytics to make him a happy customer and build a healthy relationship with him. 

To start with, banks can pinpoint exactly what services and products the new customer prefers the most by identifying his banking behavior pattern. This also indicates his responses to new offers and products, thereby telling the bank if he is the right prospect for the new product or not. Over a period of time, as the new customer becomes a known customer; predictive analytics can help the bank to craft tailor made services to him. 

Thus, aided by predictive analytics, when banks make sustained efforts to know, understand and provide need-centric services to their customers, they succeed in nurturing and growing a group of loyal customers who only have good things to say about their bank. These customers (remember, you and predictive analytics made them that way) are strong brand advocates who are powerful enough to influence others (read potential customers) banking decisions.

How else do you think Predictive Analytics can benefit banks? Share your thoughts in the comments below. To know more about Shout Analytics and its Predictive Analytics capabilities, write to us at info@shoutanalytics.com