Predicting Customer Life Events

How can I better understand my customer’s financial needs? What can I do to help them plan ahead of major life events?

All financial institutions need to be asking themselves how to provide a more individualized banking experience. Services like Amazon, Netflix, and other highly personalized products have reset the expectations of consumers. They now anticipate - regardless of the company, that they will receive a bespoke experience.

Retail banking has a unique opportunity to become proactive in financial needs-based conversations. Whether customers realize it or not, they create a wealth of transactional behavior data leading up to a major life event.

For example, Sarah and David are having their first child! They’ve got doctors’ visits, clothes to buy, a crib to put together, and so many other preparation purchases. They want to make sure everything is perfect ahead of their little one coming into this world. In doing so, they make hundreds of purchase – leaving a trail of data ahead of one of their largest life events.

By using machine learning to understand and analyze client transactions, bankers can proactively meet customers needs by having conversations as soon as it becomes evident a life event is in the near future.

Let’s take a look back at Sarah and David, they are banking with a modern institution that has personalized banking at it’s core. The bank has a live event data product that analyzes client transactions for trends. After Sarah and David’s third baby related purchase, it triggers an automated marketing material for a money market with language geared toward protecting your family from the unexpected. With their focus solely on planning for their newborn, they hadn’t given any thought to what if one of them lost their job after coming back from leave. In this case, their bank filled a financial need they didn’t even realize they had till it was surfaced.

If you’re interested in learning how to better understand and serve your customers, contact us today at partners@dataproductsgroup.com .