How banks with mature personalization programs overachieve and outperform competitors

While the financial industry is not at the forefront of the push toward personalization, some trendsetting banks are making significant strides. These banks credit their mature capabilities for their success in outperforming goals and staying ahead of competitors.

According to How banks can unlock quick wins and lasting benefits through smart personalization, a March 2022 commissioned study conducted by Forrester Consulting on behalf of Blend, banks with mature personalization efforts are 73% more likely to say that personalization contributed to their customer service success and 122% more likely to credit their personalization efforts for success in customer onboarding. No wonder nearly three-quarters of bank decision-makers said they plan to increase their investment in personalization.

In our ebook, Bring personalization to life: Applying cross-industry insights to financial services, we examine examples of successful personalization across industries, define the pillars of personalization, and outline the capabilities that enable financial institutions to develop effective personalization programs — and reach a level playing field with their mature competitors. But first, we’ll unpack how mature personalization programs set banks apart from the crowd.

What makes a bank’s personalization capabilities “mature”?

According to the Forrester personalization maturity model, a bank has mature personalization practices when they are implemented across the board. But what does this mean in practice?

Mature programs involve several proven personalization capabilities, including:

• Personalizing across the customer lifecycle to support customers at every step
• Leveraging holistic knowledge of customers based on stated and inferred needs to help them reach their goals
• Predicting what offers and experiences are most useful to customers before they ask

Five key areas in which mature banks outperform their competitors

Banks with mature personalization capabilities outperform low-maturity banks in many areas. We’ve identified and defined five key areas where mature banks see greater success than low-maturity banks.

Cross-sell

Respondents from mature banks were nearly three times more likely to say their bank outperformed its cross-sell goals when compared to respondents from low-maturity banks. By maintaining a holistic understanding of each customer, mature banks can more effectively make cross-sell offers when and where customers are most likely to buy.

Acquisition

Mature banks were also nearly three times more likely to say their bank outperformed its customer acquisition goals when compared to respondents from low-maturity banks. It’s easy to see why — with only 14% of consumers saying they believe banks currently deliver excellent personalized experiences, financial institutions with mature personalization practices in place stand out in a crowded marketplace.

Understand customer needs

Mature banks are more successful at understanding and responding to customer needs. By developing an understanding of customers’ stated and inferred needs at an individual level, mature banks can provide tailored choices and relevant offers, ultimately engendering customer loyalty.

Digital innovation

Mature organizations realize there is power in rich customer data sources and investing in innovative ways to leverage them. By knowing how customers want to interact along the lifecycle, mature banks are able to develop innovative, purposeful tools and technologies that create real value for customers.

Customer experience

Mature banks said their organization overachieve against customer experience goals by 64% compared to their counterparts. Providing a range of experiences that consistently deliver on customer expectations is key to retaining customers.

Getting started on the journey to personalization

Customers are demanding personalized and dynamic engagement from their financial services providers. Mature banks that deliver this are overachieving against their goals and outperforming their competition.

Ready to deliver the personalized experiences customers demand?

• Download our ebook