Financial institutions are always looking for a competitive edge. With the advent of more advanced machine learning and data-gathering techniques, the use of predictive analytics has become an increasingly important tool for financial institutions. It helps FIs to chart a course for the future, staying ahead of their competitors and the expectations of their customers.
However, predictive analytics may have more applications than many FIs realize. In this article, we’ll discuss how you can utilize predictive analytics more effectively in marketing, see how their use can supercharge campaigns, and provide a few practical examples of opportunities for integration.
Predictive Analytics in Marketing
FIs use predictive analytics to minimize risk, detect fraud, and provide guidance on how to respond to macroeconomic trends. They use the same pattern recognition and forecasting strategy in all of these instances to calculate the likelihood of specific outcomes, which then allows the FI to create automated strategies that respond in specific ways.
Predictive analytics can be leveraged in a similar way to become an incredibly useful marketing tool. By using predictive analytics in conjunction with marketing data, FIs can bring together seemingly unrelated sets of data points and visualize the potential outcomes, allowing them to stay ahead of the needs of their consumers.
Disparate data sets like consumers’ age, web activity, and history with specific financial products can give the FI a rough picture of their future needs. With the right technology, the FI can then craft marketing campaigns that target potential consumers before those needs arise. This strategy helps cut down on the amount of competition the FI experiences in trying to convert its audience and builds trust by suggesting solutions ahead of time.
Building Advanced Campaigns
Building automated campaigns with predictive analytics as a cornerstone allows FIs to capitalize on the power of their data and find the most efficient routes to success. Through the use of predictive analytics, FIs can more accurately foresee which financial products they should be marketing, target the audience members that are most likely to convert and choose the channels that are most likely to succeed in reaching them.
Predictive analytics can increase the effectiveness of campaigns across the board. Below are some interesting ways we at Prisma have considered integrating them into marketing efforts.
“Fixer-Upper Financing”
By tracking an audience member’s loan approval status, along with spending at home improvement stores, an FI could determine that they are in the market for quick-cash loans for time-sensitive home improvement projects. By offering fast approval and access to funds, the FI could potentially secure a conversion from the convenience factor alone.
“Cash Crisis Alerts”
Accounts that show a declining balance, that are incurring NSF fees, or that have incoming transfers from payday lenders can be flagged as potentially in need. The FI can then offer small, short-term loans to the audience member at a rate significantly lower than payday lenders, converting the customer while also nurturing a relationship by providing relief.
“Checking Optimization”
If a financial institution had implemented tiered checking accounts, consumers could be prompted to switch their tier at no cost if spending and saving habits aligned. This type of campaign is great for boosting trust and satisfaction with the organization because switching account types is frictionless and benefits the consumer in the long-term.
“Future-Proof Deposit Promotion”
By tracking the deposit habits of high-balance accounts, FIs can identify consumers who prefer to use tellers or visit branches to make their deposits. Offering a small reward can help minimize the impact of automation by encouraging people to switch to ATM or mobile deposits before face-to-face deposit transactions are phased out at their location.
Who Can Help Me Build These Campaigns?
Through the use of advanced campaigns, FIs can act more quickly and precisely, driving value for their organization and the people they serve. Prisma Campaigns has the technology and experience to help your FI succeed in building marketing efforts that stand the test of time and give your FI a competitive advantage. If that sounds good, schedule a demo with us today to see how Prisma can make a difference.
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