What Financial Services Companies Need to Know About KYC
It’s no secret that technology is changing the way business happens, and financial services companies need to understand this digital transformation in order to compete in 2019.
Customer experience is more important now than ever. As technology has advanced, GAFA (Google, Amazon, Facebook, Apple) has notably changed expectations that consumers have for all companies, not just tech companies.
This series will explore various facets of Digital Transformation, equipping your marketing team to respond and adjust to keep up with today’s consumers and their expectations. Read the first post in the series about Customer Journey Maps here.
Knowing Your Customer (KYC) is more than simply knowing about your customer. It’s gaining a data-driven understanding of each customer segment and using that to drive marketing initiatives. In the era of Digital Transformation, KYC will lead to successful mobile advertising campaigns, stronger customer funnels, and better customer experiences.
The best way to know your customer is to start with customer journey maps and customer personas. These are valuable tools that help you define your customers and their buying journeys, using data instead of assumptions.
It’s important to complete those steps for each customer segment in your target market, because different customer personas will follow different journey maps.
Using KYC to anticipate customer needs and expectations will serve both the business and customers well. Social and mobile, as well as other digital technologies, are creating a shift in customer attitudes and behaviors (source).
Consumers in the digital age expect:
- Advertisements that are relatable and timely
- To feel known and understood
- Customizable services and options
- Mobile-optimized everything
- Businesses to be mobile and social
Anticipating the market’s needs is far more effective than reacting to the market, which is what is currently happening in many sectors of the financial services industry. Digital transformation is rapidly changing the way things are done, and some financial services organizations are struggling to keep up.
GAFA (Google, Amazon, Facebook, Apple) has set the stage for expectations with customer experience, delivery speed, ease of service, and mobile-readiness. Those expectations carry over into most business interactions modern consumers have, no matter the industry.
As much as consumers want their personal information protected, they also want to quickly and easily access it when they need it. This includes checking balances, requesting quotes, accessing customer service, transferring money, etc. Even though this involves sensitive, personal data, consumers expect it to be fast and simple, trusting that their information is secure.
To provide an excellent customer experience, businesses need to implement customer-driven and scalable services and infrastructure. This resonates with customers because it gives them some control over their experience and they can customize it to their needs. A scalable plan is necessary for sustainable business growth.
How will your financial services company utilize KYC to increase customer engagement?