The mission of building one-to-one communication and engagement is not a new concept. Back in 1993, Don Peppers and Martha Rogers, Ph.D., proposed that organizations could use technology to gather information about, and to communicate directly with, individuals to form a personal bond. The book, The One to One Future: Building Relationships One Customer at a Time, stated that technology had made it possible and affordable to track individual consumers, to understand each person's individual journey, and to provide contextual offers at the optimal time of need. Six years later, internationally recognized best-selling author Seth Godin published Permission Marketing. He built a logical case for creating incentives for consumers to accept advertising voluntarily.
We are entering an era of connected experiences, where consumer banking interactions are increasing exponentially. Predictive analytics allows financial institutions to better understand consumer needs and to provide personalized and contextual experiences along the entire customer journey. As mobile technology evolves and customer journeys are digitized, being able to gather data and conduct post-event analysis is no longer enough. Consumer expectations are being set by companies like Google, Apple, Facebook and Amazon, where real-time predictions about future needs and behaviors build enhanced experiences. The marketplace is quickly moving from "mobile-first" to "AI-first", evolving from a descriptive analytics model (rear view mirror view) to a predictive analytics model (insight GPS view).
Over the past decade, the marketing profession has moved from art to science, with a foundation of new technologies powered by artificial intelligence (AI) and internet of things (IoT), and with a level of personalization and real-time communication only dreamed of in the past. Consumers are continuously connected through mobile devices and have complete control over the organizations they interact with and purchase from. Their expectations are elevated -- and the opportunity for banks and credit unions that master the new technology has never been greater. Management's expectations are elevating as well. Rather than asking to see the newest TV commercial or hear the next radio commercial, financial institution leaders will increasingly say, "Show me the money" as it relates to the impact of marketing initiatives.
Over the past couple years, the Digital Banking Report has done several research reports on the digital transformation of the banking industry. While the largest financial institutions appear to be keeping pace with consumer expectations, the majority of the industry is falling woefully behind. It doesn't need to be this way. The Digital Banking Report has been researching the financial services industry for more than two decades, tracking industry trends and making predictions about the future of retail banking. Recently, a startling trend has emerged that could have a dramatic impact on the industry worldwide.
AI and machine learning are making the customer experience more personalized and contextual than ever before. Banks and credit unions are using advanced technology to make websites, emails, digital advertising, social media and other content more efficient and effective. This is increasing marketing ROI as well as customer satisfaction. Subscribe to The Financial Brand via email for FREE!There is a great deal of discussion of the potential value of artificial intelligence, machine learning and robotics in banking. Unfortunately, much of the implementation of these technologies lags the potential by a significant margin.