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Customer Loyalty, Fintech and Big Data

‘In business, the idea of measuring what you are doing, picking the measurements that count like customer satisfaction and performance...you thrive on that' - Bill Gates

6Jul

In business, the idea of measuring what you are doing, picking the measurements that count like customer satisfaction and performance...you thrive on that,' - Bill Gates

Customer retention versus acquisition – it takes 5 times more effort and resources (time, money) to acquire a new customer than to keep an existing one, which emphasizes the importance of CX (customer experience), especially in this era of unlimited consumer choices just a click away.

Let us have a look at the following triangle, as I like to call it: CX (customer experience) – Customer Engagement – Customer Loyalty, as a highly desired output for any business.

Customer journey is another popular term these days, and the smoother the journey without any major or minor mishaps perceived by the customer (whether true or not, perception is reality), the higher the positive experience, and ultimately loyalty.

Pertaining to the crucially important customer elements mentioned above, I came across Zafin, an interesting Fintech player headquartered in Toronto, Canada that offers relationship banking software solutions to financial services providers worldwide.

They focus on CLM (customer lifecycle management) for both retail and corporate banking, with some strong credentials with leading banks across the globe.

Zafin’s forte is comprehensive loyalty management for banks: Standard Chartered addressing their fragmented loyalty programmes via Zafin’s miLoyalty, Dubai Islamic Bank’s loyalty programme enables customers to redeem points for utility bills as an example and CSOB (Czechoslovakian Commerce Bank), with their holistic loyalty/cards rewards programme (being a Czechoslovakian I read the whole case study thoroughly).

The vendor aspires to track, monitor and measure loyalty programme effectiveness as well as provide visibility into customer engagement.

If we want to drill down into these variables and really grab the Loyalty Analytics by the horns, I believe that the vendor solutions below (I personally would recommend these as synergistic with Zafin, for the reasons outlined next to each vendor) might be complementary to the strong banking expertise of Zafin and ultimately help to maximize the much needed objective of CX (customer experience) for the customer.

When stars are aligned, then customer loyalty should lead to customer retention and less of a need for new customer acquisition – in a simplified equation of course.

To get closer to the objective of omnichannel, integrated and comprehensive Loyalty Analytics, I would recommend having a look at the following solutions:

Datameer – agile end-to-end Big Data/Analytics platform (having support for Spark in place), helping Citi and American Express. In the latest Datameer version, they like to call their approach ‘fluid data discovery’, with an analogy to an online gamer, totally immersed in the game (some of these folks sadly get lethally immersed, but that is a different conversation) and being in the flow zone, which is analogous to ‘smooth customer journey’, which is our objective.

Information Builders – strong Analytics portfolio (since 1975) across three Is: Intelligence, Integration, Integrity. The FSI industry is one of IBI’s prime focus areas - nine of the 10 largest banks in the U.S. and the five largest banks in Canada rely on Information Builders to better manage and analyze their data

Trifacta – this vendor call their approach ‘data wrangling’, which is focused on self-service data preparation, helping banks like Barclays or Santander to tidy up their data and prepare it for analysis – I see strong potential synergies with Zafin

Periscope of McKinsey – their price and margin optimization expertise, big data, vertical insights together with superb capabilities, when it comes to business objectives articulation – it is McKinsey, after all.

Light Sunday evening considerations are adjourned for now – thoughts welcome, as always.

Bruno Polach

www.AnalyticsOfficers.com

Sources

Picture: courtesy of Flickr/Robert Eager/Journeys

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