How banks can use data to stop hemorrhaging customer lifetime value

by | Oct 24, 2022 | Technology

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The retail banking world has viscerally felt the direct impact of customer disengagement. Many decision-makers at these institutions believe that it’s harder and much more expensive to reengage with a disengaged customer than it is to engage a new one. This is further complicated by the fact that these businesses are struggling to deliver relevant and engaging content to their customers, despite having a wealth of customer data available to tap into.

While decision-makers at these organizations recognize the importance of customer engagement, they continue to withstand alarming opt-out rates — nearly 75% reported that their customers are increasingly opting out of marketing communications year over year. 

Can this growing opt-out rate be reversed? Perhaps — by building data-driven and contextually relevant content that engages and nurtures customers for life. But hurdles exist, such as product-driven marketing, underspending on existing customer engagement and disparate communication strategies. These three factors all work to undermine the engagement required to drive growth.

To understand how to bolster communications strategies, it’s important for banks and other industries suffering from dormancy or disruption to first understand where the problems currently live. 

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Where the customer lifetime value hang-ups are

For banks, the missing link is the bridge between content and channel; delivering content that is not only relevant, but timely and accessible. Taking a “spray and pray” approach to developing and sending out mass communications — instead of composing a unique and contextually relevant experience for each customer — can spell trouble. Using content not tailored to each customer’s needs can also run the risk of those customers opting out of marketing communications from the bank, or churning out of the funnel altoget …

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