In an era where the customer is king and personalization drives business value, the banking industry has been slow to achieve the level of data liquidity they need in order to stay relevant. With purchase insights, banks can build better customer profiles, target marketing efforts with greater accuracy, and improve their sales opportunities. We carefully outline the current landscape, challenges and the benefits of purchase insights as a solution.

1. How well do banks know
their customers?
Understanding and anticipating customers’
needs requires rich data.
Purchase insights for banking.

2. Channel UsageDemographics
Transaction Data
1
2
3
Product Holdings
4
THE PROBLEM
Most banks use 4 main data sets to build customer
profiles and send targeted offers:

3. Transaction data visible to
banks–merchant name &
total spent–does not paint
a complete picture of who
the customer is and what
they care about.
It also neglects information
from other forms of payment,
such as cash, gift cards and
cards from other financial
institutions.
TOTAL $603.56
*0097 VISA CHARGE $603.56
Cash & alternative payments
make up over one third of
consumer payments.
(Federal Reserve, 2014)
On average, consumers carry
3.7 bank cards and
1.5 store credit cards.
(Experian/State of Credit, 2016)
3.7 1.5
33.3%
Transaction data is not enough

4. Only 16% of customers said they would
buy additional products from their bank.
(Capgemini, 2016)
Targeting based on incomplete data leads to irrelevant
offers and wasted marketing dollars:
53%
53% of customers received
an ad from their primary bank
for a product they already had.
(Gallup, 2015)
BANK
16%

5. In fact, personalization can deliver
5-8 times the ROI on marketing spend,
and lifts sales by 10% or more.
(McKinsey & Co, 2014)
10%
15%
20%
Improved targeting efforts increases marketing
productivity and sales efforts:
78%
78% of customers said
personalized offers encourage
them to purchase a product.
(Magnetic Media, 2015)

6. THE CHALLENGE
To build holistic customer profiles, banks need to look at
customer behavior in context. They need to:
Aquire data that provides
a 360-degree view
of the customer.
Turn data points into
actionable insights.
Provide value-added
services while acquiring
data passively.

7. Grow your relationship, grow your business
Banks need to anticipate needs by knowing exactly what
customers are buying and how they are spending their money.
Deeply understanding their customers gives banks a competitive
edge to grow relationships.

8. His recent purchases differ from his past
purchases, despite similar totals.
CASE STUDY: UNCOVERING LIFE STAGE EVENTS
Meet Jim. He actively uses his bank's receipt capture & management service to track
his expenses. Jim's bank knows what items he's buying, how he spends his money
across product categories, and how he prefers to pay across merchants.
Jim’s captured receipts
E 12983 BARCLAY CRIB WHITE 494.00
E 56729 KIDICOMFORT 7PC BEDSET 89.00
E 77888 EVENFLO INFT TRAVEL CRT 150.00
E 099122 SUMMER BL AUD MONITOR 80.00
E 128371 SOURVERT FABRIC SFT 13.99
E 987724 G2 DETERGENT TABS 22.99
E 010121 KOBE CLSC BEEF BRG 49.99
TULSA HILLS 918-877-1620
02/04/2017 06:27 PM
90%
Baby & Kids
Category

9. Item details reveal that Jim is no longer
spending on Men’s Apparel and Electronics.
Instead, he’s spending on Baby & Kids product
categories.
The shift in spending reveals a life stage event:
Jim is a father now
By acquiring deeper purchase data,
Jim’s bank can identify changes
in buying behaviour that indicate a
life stage transition.
Jim's bank can now personalize offers
based on his real-time needs. They can
inform him of the value of an Education
Saving Plan, or a credit card with rewards
better suited to his new life stage.

10. THE RESULT
Knowing exactly what customers
have purchased allows banks to
identify changes in behavior and
generate actionable insights based
on expected needs. As customers
move through different life stages,
banks can proactively tailor their
offerings, thereby boosting
customer engagement, loyalty
and marketing ROI.
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