In the previous module on Business Models, senior marketing managers rated their company’s capability of ‘Capturing a single view’ of the customer at an average score of 2.8 out of 5. This reflects the fragmented data architecture on legacy systems that exists in many organisations.
Being able to capture a single view of their customer is fundamental to understanding them, through their demographic profile, their potential needs through their product holdings and how they use them, and their current and potential future value to the bank.
By systematically collecting what customers are planning or expecting to deal with in the future, along with some sense of a timeline, the bank can build up a picture of where and when they can help fulfil a dream, get a job done effectively, or solve a problem.
Many customers are happy to share this information with their bank, provided the bank uses it responsibly and for mutual benefit, and demonstrates trust in their bank.
The advantage to banks is that they construct more accurate predictions of the customer’s future value, although they still must undertake the activity to realise the opportunity. We discuss this in Customer Value.
This is how a customer interacts with their bank and provides valuable information about how they view and use their bank account. In the past, how customers transacted with the bank was used in anti-money laundering checking and credit scoring. Understanding how the customer interacts and transacts with the bank can reveal patterns of behaviour that show attitudes to the bank.