We had the chance to attend the Finance @Google in the European Google HQ in Dublin. These are our findings over these amazing two half days.
The customer is not the same anymore, he’s not as loyal any more and goes from one to an other. There’s a disruption in the industry, with new players coming up and shaking everything.
What used to work for the last century will not word for next decade, let alone the next three years.
We are in the age of assistance.
As long as the experience is great, customers adopt the new technologies.
The industry will move to more and more services provided, in a very personalised way. This can work right well with digital, where you can take away the focus of negative image (of for example insurances which are only used in cases where something negative happens), to a positive interaction (advice on linked topics for example).
Banks and insurances position themselves as purchase brands, as they should aim to be usage brands. Usage brands increase loyalty, as their only goal is to make sure people use their brand at a high satisfaction rate.
Take Trov for example, they developed insurance on demand, with a great user experience. They cover risk, claim management and all this fully digital.
But the question is: how do you change such an old and hierarchical industry?
Brands were assessed based on their digital marketing maturity. These are the different maturity levels a company can be in:
- Nascent : using mainly external data
- Emerging: some use of owned data with single channel optimisation
- Connected: data integrated with ROI processed to track on sales
- Multi- Moment stage (Nirvana stage): full understanding of owned and third party data, allowing a full integration of dynamic execution optimized towards a single-customer business outcome across all channels. This is what you should all aim for!
Most companies are in the emerging and connected stages. What is blocking them to break through this barriers?
Finance is one of those sectors where they remain stuck on those stages ( retail for example is one of the most mature industries)
To move from one stage to an other, there are 6 technical and organizational factors you need to work on. The first 3 are tech oriented, last 3 are related to the organization of your company:
- Connected data: lack of 1st party data. Understand your consumers based on what they shared with your brand. Match with third party data
- Automated & integration tech: it goes further than the media buying: keep your audiences updated and work out a meaningful content strategy related to those audiences
- Actionable measurement: KPI setting is key, as well as working out a measurement ecosystem that takes into account testing and feedback mechanisms.
- Strategic partnership: work with agencies with complimentary roles, ensure C-level support.
- Specialist skills: in or outsource those people? Open new projects only if you have the resources, be it in-house or not. (taking programmatic internally if not ready will not work out )
- Agile teaming and fail fast culture. It’s ok to fail.
It’s important to keep in mind that the nirvana stage of today (multi-moment) will be nascent in a few years. As a business you need to keep on evolving.
It’s important to stand still and understand that no matter how strong, how good, how big,… a product is… its always one step away from extinction.
Your data should not only be used to report, but to predict what people are going to do. Do you in all the data you own, have the capability to forecast behaviour? Do you understand what your customers are going to do? Can you come to an individual prediction level on what they are going to do? And do you adapt your marketing solutions? By taking an average of your customer life time value, you mix data from your worst customers and your best. This is why going to an individual level is advised.
If you know who your top converters are and who your worst converters are, do you adapt your investments accordingly to their profile?
What do high value customers actually buy? What do I bring to them? What do I sell them?
Do you know how much people are worth over time, depending on the channel on which you acquired them?
If you invest in a channel, how does this affect your customer behaviour?
As a company you need to try to pursue immediate insights and develop further on from there. In a year, you should be able to validate each opportunity and in the future automate all these findings coming from data.
Try to expand your data in a continuous way, by adding new customer data, opportunities,… keep on testing all the time and do more and more often.
There are many opportunities ahead, and moments to grab to make a difference in your competitive market.