This is the first of three posts about how data-driven applications can benefit today’s financial institutions. I’ll highlight how an agile data management platform can deliver data-driven applications for any use case in any industry through simple configuration.
More and more, financial services organizations are focusing on driving revenue growth by selling more products and services to existing clients or gaining new clients through the existing client base. Compared to the time, cost, and effort to acquire new clients, this approach makes good sense. It is far more cost effective to market to existing clients than to cold-call names from a purchased list of prospects. In fact, organizations have a 60 to 70% chance of increasing sales to a current client, versus a mere 20 to 40% likelihood of winning back a former client or closing a sale to a prospect.
Despite the logic, existing clients continue to be a largely untapped revenue source for many financial services companies because there is no enterprise-wide cross-bank/cross-product collaboration that maximizes the value of existing Client relationships.
Firms want to use cross-bank and cross-product referrals to tap into a wealth of opportunity, including:
- Cost-effective revenue growth
- Established Client relationships reduce the cost of client acquisition
- Vast cross-sell opportunities already exist in the Client base
- Tapping into identified needs results in faster sales with a greater likelihood of closing
- Longer lasting, more loyal relationships, making it easier to compare and switch providers
- Studies show that clients who hold more than one product or service with an organization are less likely to defect
- Users can share appropriate client information from siloed systems across lines of business
- Deeper relationships make clients feel valued
- Today’s increasingly sophisticated clientele appreciates a full-service, tailored experience
The role of integrated and holistic client views that cut across lines of business and include an understanding of client relationships along with the in-depth view of the interactions taking place across the organization cannot be underestimated. Coordinating the moving parts of such a level of understanding of current clients can be daunting. Challenges include:
- Identifying opportunities to sell additional products to a client or household
- Timely routing of referrals to the right person
- Ensuring a consistent client experience across lines of business
- Incenting staff and enabling effective management oversight across lines of business
- Supporting regulatory and privacy requirements
- Monitoring key client-instigated actions that carry time-critical implications
A new generation of data-driven applications can allow users in different roles and lines of business to more easily identify cross-bank client opportunities by:
- Providing a comprehensive client view
- Enabling gap analysis across the enterprise
- Tracking client life events
- Modeling extended client relationships
- Detecting and report client actions across all channels
- Meet an unlimited number of use cases across the enterprise through simple configuration
Just like financial institutions, enterprises in all industries should take action now to better engage with their clients before they become someone else’s prospects.