Most financial institutions focus on their customers in a large brushstroke, considering the ways their offerings interact with their customers. In particular, financial institutions get more granular regarding customers journeys — working to understand various customer paths leading to different products and services, and the touchpoints along the way.
Getting a granular perspective on the customer journey is certainly a valuable endeavor, but it isn’t enough. Directors and executives can’t afford to view their customer base as a monolith. Instead, they should more accurately view their customers as a diversity of opinions, financial situations and needs.
When considering partnering with a FinTech organization, getting more granular with customer segmentation leads your organization to better leverage customer data in order to offer customized, high-value offerings for your base. Consider the following points when looking at your customer data for segmentation.
Demographics
Looking at your customer demographics can help point you in the right direction, and while seemingly basic, can provide a great starting point for learning about your customers. Age might dictate tech fluency, while other factors like gender might lean toward certain spending or savings behaviors.
Online Shopping Behavior
If your organization is able to process your customers’ spending data, you can learn about what interests them, what they find valuable, and how they apply their financial spending power. This can help your organization and FinTech partnerships to do things like creating tailored budgets, developing partnerships with third-party vendors for discounts, or simply speaking to your customers in a way that’s relatable.
Income
Your customers’ spending power dictates their ability to save and spend, and as their financial institution, you can help put them in a stronger, more resilient financial position by understanding their income and how it’s applied.
By partnering with a FinTech organization, you can understand your customers’ income, cross reference it with other major pieces of their financial picture (cost of living depending on area, rent/mortgage expenses, etc.) and make tailored recommendations to help improve their financial lives.
Credit and Financial Information
Beyond spending and income, credit and general finances help deepen your organization’s understanding of your customers’ financial lives.
Your customers’ credit expands their power to purchase a home at a low rate, while the size of their emergency fund might make them either resilient or vulnerable to economic hardship. As a financial institution, and with the support of a Fintech partnership, you can make sense of this financial information and serve as a consultant on their next financial moves.
