Morning Consult

March 28, 2023 at 5:00 am ET

When it comes to tracking consumer data in the finance industry, it’s easy to see the benefits related to lending and credit, preventing fraud, and complying with regulatory requirements. What’s often forgotten are the ways in which financial services companies can use consumer data for business growth.

By using consumer data to its fullest extent, financial companies can attract new customers, deepen relationships with existing customers and ultimately drive revenue growth. Below, we’ll dive into the key areas companies should consider when thinking about how to effectively leverage consumer data to inform their growth strategies.

1. 1. Personalize customer experiences
   2. Adjust business strategy and customer experiences to address evolving consumer expectations
   3. Develop new and innovative financial products and services
   4. Improve risk management
   5. Gain a competitive advantage
   6. Consumer data paired with predictive analytics can inform business decisions
   7. Access real-time consumer data with Morning Consult’s platform

Personalize customer experiences

Financial services companies using consumer data to personalize customer experiences can build stronger relationships with consumers, increase customer loyalty and differentiate themselves from their competitors through: 

• Customized offerings: Financial companies can use customer data to create customized product offerings that are tailored to a customer’s unique needs and preferences. For example, a bank might use data on consumer spending habits to create a personalized savings plan that is designed to help customers achieve their financial goals.
• Targeted marketing: To create targeted marketing campaigns, financial companies should use consumer data to ensure their efforts are resonating with their target audience. By analyzing customer data, financial companies can identify trends and patterns in consumer behavior and use that information to create targeted marketing that speaks directly to a customer’s interests.
• Personalized communication: Financial services companies can use data to personalize their communication with customers. For example, an insurance company might use data on a consumer’s preferred communication channel (e.g., email or text message) to send them personalized messages about new product offerings or a special promotion.
• Predictive analytics: Financial companies can leverage predictive analytics to anticipate consumers’ future needs and preferences. For example, a bank might use data on a customer’s recent transactions and browsing history to predict what products or services they are likely to be interested in and make personalized recommendations accordingly.

Adjust business strategy and customer experiences to address evolving consumer expectations

Consumer data analytics helps financial companies gain insight into evolving consumer expectations. This data can come from a variety of sources, such as transactions, customer feedback and social media. By analyzing this data, financial companies can identify patterns and trends that indicate changes in consumer behavior and preferences.

Financial companies can then target areas where their business strategies and customer experiences need to be adjusted to meet evolving consumer expectations. This may involve making changes to product offerings, improving customer service or investing in new technology to better meet customer needs.

By using consumer data to guide decision-making, financial companies can continually adapt their business strategies and stay ahead of the curve.

What are some of the top trends we’re seeing in consumers’ relationships with their primary banking and payment providers? See the latest in Morning Consult’s State of Consumer Banking & Payments report.

Develop new and innovative financial products and services

Collecting and analyzing consumer data gives insight into consumer needs and helps identify patterns and trends that indicate areas where new products and services are needed. 

For example, if a bank is tracking consumer data and notices consumers are using their mobile banking app more frequently than traditional banking channels, it would be beneficial for the bank to continually enhance the functionality of their app by ensuring the user experience is optimal or perhaps by adding additional features. 

Customer data can also help identify any pain points related to a product or service. This can involve conducting surveys and focus groups, observing consumer behavior and analyzing feedback. By understanding customer pain points, financial companies can pivot their strategies as needed to better address consumer needs.

Improve risk management

Tracking consumer data analytics in financial services industries helps companies identify and manage risks more effectively. By analyzing customer data, financial companies can identify patterns of behavior that may indicate increased risk, such as missed payments or high debt levels. This can help them take proactive steps to reduce their risk exposure.

For example, tracking consumer confidence data is one way financial services companies can improve risk management. If consumer confidence is low, consumers are more likely to be cautious with spending and investment decisions, which can reduce profits for financial services companies. If consumer confidence is high, consumers are more likely to spend money, invest and accrue debt, which can lead to increased revenue for financial services companies.

Interested in seeing how U.S. consumer confidence has shifted over time? Check out Morning Consult’s U.S. Consumer Confidence Dashboard.

Gain a competitive advantage

As we’ve explored above, analyzing consumer data in financial services helps companies gain insight into how customers are using their products and services, as well as identify areas of improvement. Because consumer needs are constantly evolving, it’s critical for financial companies to leverage this type of data to gain a competitive advantage. 

For example, a financial institution might analyze transaction data to identify customers who frequently use their credit cards to make purchases at restaurants. Based on this data, the company might consider offering these customers a customized credit card with rewards and benefits tailored specifically to their dining habits, helping increase customer satisfaction and loyalty.

Another example is the use of demographic data to inform marketing strategies. By analyzing demographic data such as age, gender and location, financial institutions can identify specific customer segments and tailor their marketing efforts accordingly.

Ultimately, leveraging consumer data is the most effective way to help companies stay ahead of the competition. See how financial institutions across the globe are leveraging Morning Consult data to inform their decision-making.

Consumer data paired with predictive analytics can inform business decisions

When paired with predictive analytics, consumer data can provide unique insights that can inform business decisions in several ways, including:

• Customer segmentation: By analyzing consumer data using predictive analytics, companies can identify specific customer segments and customize their marketing efforts accordingly.
• Product development: Predictive analytics can also be used to identify market trends and develop new products and services. As mentioned above, analyzing consumer data helps financial businesses identify areas of unmet need and develop innovative products and services.
• Sales forecasting: Companies can use consumer data to identify patterns and trends in consumer behavior and predict future sales volumes.

Access real-time consumer data with Morning Consult’s platform

Ready to transform raw consumer data into actionable insights?

With Morning Consult, you get the critical data you need to better understand your customers, as well as comprehensible insights that will help you take the right next steps. Our advanced technology anticipates consumer behavior in the financial industry, priming you to take advantage of clear market gaps and stay ahead of the competition.

We consistently deliver intel on the latest financial trends and topics, as well as a financial trends tracker that’s updated monthly and reveals insights into consumers’ use of and satisfaction with financial services providers.

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