Banking offers are products and services built from the bank’s core capabilities like deposits, withdrawals and more. These are custom created bundles of offerings that are designed to meet individual customer requirements and they can be measured and priced differentially. Offers are usually targeted towards specific markets, target audience or geography and includes the exact pricing for the product or service as well as optional features that may be available. Offers are a good way to engage customers and increase share of wallet. For example, banks offer credit card customers discounts on partner brands, or a high value customer can be offered discounts on laptops or mobile phones. For instance, banks can create a tailored package of products and services for entrepreneurs or SMEs that meet their specific requirements.
With the right offer management solution in place, banks can leverage advanced data analytics technologies like AI and ML to come up with unique and differentiated offers. The solution will complement contextual marketing efforts to help facilitate better cross-selling and up-selling and deliver the right product through the right channel at the right time. Such an automated platform will be able to break down organizational silos to gain a comprehensive view of customer history across business lines and understand their requirements. The platform must be able to use predictive analytics to devise personalized and relevant bundles and offers.
Developing such capabilities inhouse can be an expensive and time-consuming proposition. Banks can work with third-party solution providers who can implement an agile middle layer by seamlessly integrating with the existing technology stack. Such platforms can provide scalable and configurable offer management capabilities. Banks must deploy solutions that can orchestrate the complete lifecycle in real time using data, simulation, offer testing and roll out across multiple distribution channels.
The banking sector is at a critical inflection point. Modern customers are not afraid to experiment with newer more digitally advanced options for their finances if they offer the agility and personalization they want. And yet, retaining customers and increasing share of wallet is more important today than ever before. Banks must accelerate their customer centric transformation journeys and must have the digital capabilities in place to treat each customer as a unique entity with innovative custom created offers. Better data analytics, better segmentation, and personalized engagement is the only way forward. And to achieve this, banks must look beyond traditional solutions and adopt innovative, powerful third- party technology solutions.
