“The secret is spilled out –
Offer and perform in a way that they not only want to consume it again but also want to bring along their friends and fellas to experience it too.”
Today, no industry is untouched by the dominance of the Data Visualisation and Finance industry too braved to ride in the waves of this technology. The gap between customer satisfaction and customer retention has widened and brought in the light of the sun.
Finance industries no longer get expected benefits from generic points and rewards or general one-time offers. It is more about offering a personalized experience and proposal to ensure the new generation not just trusts you on transactions but stays with you.
Data Visualisation and Customer Retention
As customer retention refers to actions and strategies a business uses to keep their existing customers, advanced customer retention analytics with clear metrics of your customers is inevitable. Fortunately, we are in the dawn of Data visualization which makes churning of monstrous sized data snarling everywhere in any format.
“An alarming data of this time and age states – an average, well-established Bank loses a staggering 35-40% of its customers annually, because of failure in building customer loyalty.”
Leveraging Data Visualisation to analyse Customer Retention for a Financial Bank
Extracting information from uncertain data is one of the horrifying situations for leaders and decision-makers in the bank or a financial institution. With Data Visualization technology and tools, it becomes extremely streamlined saving cost and time to retain the customer base.
We will divulge into a situation of a popular and highly trusted bank that sees a decline in customer base over the last 5 years and wants how data visualization can help overcome this customer churn with factual reports and metrics.
Get insights into age-wise customer trends for a Bank with the help of data collected from different forms of information over the last 5 years and increase customer loyalty and retention in the next quarter.
The machine-generated data produced records of around 3 lakhs customer base for 5 years. The sources of collected data are Transactions, Log data, Events, Emails, Social Media, Sensors, External feeds, RFID scans or POS data, Free-form text, Audio, and images/videos within the bank’s information system. It looks backbreaking to make sense of the data since these were simply collected data and never analyzed.
As it is much cheaper to keep an existing customer than to earn a new one, a strategy devised to keep the new-age customers with a bank brand is possible with data visualization optimized customer loyalty reports. Using a data visualization tool, the data of customer demographics, age group, profession, etc can be stacked on graphs and charts.
- Building metrics of KPIs using data visualization tools can help you measure the performance of campaigns and offers using Data Visualisation tools. Using line graphs by situating data on both axes to find the relationship between age group and retention rate over 5 years, a Pie chart to get a pop of demographics. Heat map to account KPIs, and so on, a complete customer loyalty report can help show a bigger and clear picture to decision-makers and bank managers to build a successful customer retention strategy.
- Datasets of most financial banks are often too large for any decision-maker or financial expert to analyze with traditional reporting and data mining processes. Here comes the hero technology called Data Visualisation.
- The technology can brilliantly interpret and understand the sentiment, stand, and interaction of customers when presented in a visual context using Data visualization tools. The result of the case suggests that a unified representation of customers’ responses and intent towards a bank explained in a dashboard or business report makes more sense instantly and helps formulate customer retention strategies.
Key Takeaway and Recommendation:
As a data-driven customer retention strategy can yield cherry for your cake in the most appetizing way, Data visualization tools can drive more profit. As the 2022 research on banks and financial institutes suggests that a team that extensively uses customer data analytics in reports, sees a profit of 126% profit from repeating/loyal customers.
This gives us enough reason to recommend a tool that is simple to use, yet powerful enough to accommodate a prodigious amount of data. With an aim to boil down the customer churn rate with better decision-making using metrics, graphs, and charts, we introduced Graphina – WordPress charts and graphs plugin for WordPress sites. Powered with real-time, dynamic, and customizable pre-designed charts and graphs, this highly planned and functional plugin make data visualization coherent and easily adaptable.