Customer Segmentation for a Leading Banking Sector Client Helps Target Best Prospects and Meet Customer Expectations
Customer Segmentation in the Banking Sector Amid the economic uncertainty, banking sector companies are mainly concerned about implementing decisive steps to optimize their businesses and improve their financial performance. Also, with the recent decline in profitability, leading businesses in the banking sector are adopting new operating models and technologies to address challenges pertaining to improving […]READ MORE >>
Customer Segmentation in the Banking Sector
Amid the economic uncertainty, banking sector companies are mainly concerned about implementing decisive steps to optimize their businesses and improve their financial performance. Also, with the recent decline in profitability, leading businesses in the banking sector are adopting new operating models and technologies to address challenges pertaining to improving customer experience and compliance. In this sector, consumer is the king, and in this era of heightened customer expectations and new market entrants, it becomes pivotal for the banks to stay relevant in the marketplace. To address such concerns, leading businesses in the banking sector are leveraging customer segmentation solutions. Customer segmentation refers to proactively profiling the customers based on their preferences. Moreover, identifying the potential customers can occur through three different ways; the needs, buying characteristics, and the customer’s value. With altering consumer preferences, the banking sector needs to clearly define and target their best prospects and satisfy customers’ expectations.
Quantzig’s customer segmentation solution assists companies to differentiate their customers by economic value and predict and anticipate the segments that are more profitable.
A leading banking sector client wanted to understand customer characteristics to clearly segregate the customers into the need-based and value-based segments. Developing a marketing strategy to target specific segments is like taking a blind shot at the target. Therefore, the client wanted to gain a deeper understanding of the company’s most profitable customers and adequately allocate its precious resources in a timely and efficient manner. The primary concern of the client was to gain a clear idea on who wants to buy the product and gain relevant insights to improve performance against the competitors. The client was not just confined to delivering services to the customers, but wanted to offer better customer support and professional services to enhance business performance.
Benefits of the Customer Segmentation Engagement
Companies in the banking sector, who have employed customer segmentation strategies, have realized the fact that every customer is different and should be addressed through different marketing efforts. The customer segmentation solution offered by Quantzig helped the client gain a deeper understanding of their customers’ preferences. The banking sector client was also able to discover the value of each segment and accordingly tailor marketing efforts toward these segments. With an aim to tap untapped market segments, the banking sector client was able to maximize cross and up-selling opportunities and encourage the customers to subscribe to more services.
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Additional Solutions Offered by Quantzig Include
- Divide customers into measurable segments based on their needs, behaviors, and demographics
- Determined the profit potential for each customer segment
- Effectively allocated marketing resources and maximized cross and up-selling opportunities
- Improved customer service by 20% and enhanced customer loyalty and retention
- Stay ahead of competitors and incorporated new services to meet customer expectations
To view an updated and more comprehensive version of a similar engagement, read our latest article