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The 10 Pillars of a Banking CDP: Your Ultimate Guide

Mar 7, 2019 11:25:52 AM

 

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Hello ForesightOne FinServ Community!  Lately, we've been engaging in some very interesting and productive conversations with Innovative Marketers from SME and Large Enterprise banks.  We have decided to put together a guide that addresses some common questions about Banking Customer Data Platforms (CDP).  Let's dive right into it!


Banking Customer Data Platforms

A CDP that is 100% focused on Banking, has the ability to deliver a holistic 360-degree picture of individuals and companies across marketing (MarTech and AdTech) and financial services systems (FinTech).  A CDP collects and transforms data into clean and actionable information that can be leveraged for your marketing strategy and the execution of omni-channel campaigns. 

Common CDP Misconceptions

Misconception 1:  Customer Data Platforms are the same as Data Warehouses and Data Lakes

A common misconception is that a Customer Data Platform is similar to a Data Warehouse or a Data Lake.  After working with organizations across industries and multiple CDP providers, I experienced first-hand the difficulties marketers face when trying to leverage marketing data from Data Warehouses and Data Lakes.  So let's make a couple of things clear. 

Unlike a Data Warehouse or a Data Lake , a Customer Data Platform (CDP): 

  1. Is a platform that not only contains actionable marketing data, but the capability to create, execute and analyze marketing actions such as Analysis, Segmentation, Journey Orchestration, and Campaign Management 
  2. Is meant to support Marketers, and is usually driven by Marketers, versus IT
  3. Is meant to deliver marketing optimal performance in a very quick and precise manner
  4. Creates a 360-degree unique and persistent profile of individuals (and their devices) and companies (as well as its multiple brands if applicable), which allow for personalization and positive customer experience
  5. Includes AI and automation technologies that allow you to make more of your collected data

N.B. A Customer Data Platform can be connected to a Data Warehouse or a Data Lake in order to gain access to certain data with the final objective of building a Single View of the Customer (SCV), also commonly referred as a Unified Customer Profile (UCP).

Misconception 2:  Customer Data Platforms simply hold your customers' data

Think of a Customer Data Platform as a super-sized marketing database that contains marketing actionable data and the identity data of all your audience: both anonymous or known individuals, including: leads and customers.

With a CDP, your marketing team is able to not only improve your lead funnel but also drive customer loyalty and evangelism. 

Ten Core Elements of a Banking CDP
 

1. Identity Management 

Identity Management is the core of the CDP,  with the main goal of building a  unified profile of your leads and customers.  Banking CDPs promote:

Online and Offline Synchronization

The ability to extract, transform, load and leverage marketing data such as channel metrics and identity data from multiple online and offline systems. 

Identity Resolution

The ability to match data across devices, including cellphones, tablets, computers, and other IOT devices to create a single persistent profile of an individual. Identity resolution can be achieved via deterministic and probabilistic models.

Identity Enrichment

The enrichment of individual and company profiles with second and third party data such as demographic, psychographic, and firmographic attributes to support specific campaign uses cases and hypothesis. 

Data Hygiene

The assurance that the data you collect is accurate and up-to-date. You can't waste time emailing defunct email addresses, sending texts to disconnected numbers, or mailing individuals who no longer are part of an organization or have changed their address. Data hygiene techniques include but are not limited to:  consistency, de-duplication, standardization, cleansing.

2. Data Governance & Regulations

As a banking institution, it is critical that you have a framework in place that not only allows you to make data-driven decisions but also takes into consideration the right policies and standards, compliance and security, and information quality. 

A true Banking CDP vendor supports these capabilities via ISO certifications and it's equipped to handle mandatory regulations such as  GDPR (General Data Protection Regulation) and soon to come to the United States in 2020,  CCPA (California Consumer Privacy Act). 

3. Integration and Connectivity

Integration and Connectivity on a basic level allow your bank's products and services to communicate (securely transact data and actions) with other 3rd party product or services and vice-versa. This approach is becoming increasingly popular with innovative banks and it's the underlying concept behind Open Banking to exchange data and deploy partner related services/offers inside banking applications.

Integration and Connectivity can be achieved through a number of ways, including:

APIs

Application Program Interfaces or APIs allow your bank to securely make data and functionality available to 3rd party developers and others with whom  your bank has a partnership. Common nomenclatures for APIs in CDP include but are not limited to Data APIs (securely transact data)  and Trigger APIs (securely transact actions).

Connectors

Connectors are similar to APIs in their purpose but, while APIs are accessed by your organization's developers or contractors, connectors come pre-built or can be requested on-demand to your CDP vendor. Connectors are integrated applications with capabilities that are powerful, especially when backed by the diverse data collected via a CDP.  Commons connectors are usually available for outbound and inbound messaging (Email Service Providers like MailChimp, SMS and Voice Providers like Twilio), business intelligence platforms like Tableau and Looker, as well as retargeting networks like AdRoll, and social networks such as Facebook, Twitter, LinkedIn, and others.

SFTP

Secure File Transfer Protocol or SFTP is a common way for marketers to transfer data (typically CSV files) securely. If you are unable to transfer data in real-time for whatever reason, SFTPs are a good approach to make data available, so it can be loaded into your customer data platform for marketing use. 

Cookie Matching

When a visitor accepts a cookie on your bank's website, they'll be logged by your CDP with a unique device identifier (which can later on be associated to an individual via identity resolution).  Innovative CDP vendors and banks will leverage their agreements with AdTech vendors to match cookie IDs in a cookie pool network. Here is an example: 

Say that "Dave" lands on your site, and accepts the cookie drop; if "Dave" leaves your site and later on visits a car dealership site and that site's display advertising is powered by an AdTech vendor that is part of your CDP or Bank cookie pool, you can seamlessly push a display a banner recommending an auto insurance policy to "Dave". 

The same principle can be used for any products and services your bank offers like credit cards, loans, investments, and others. The most common way banks leverage this technique is via CDP-retargeting initiatives based on the propensity score that "Dave" and other visitors have to your bank's products and services. This is a great way to increase your marketing acquisition and cross-sell performance.

Tag Management

In the context of a CDP, a tag, sometimes called a pixel or beacon, is usually a line or two of JavaScript code that most technology vendors require in order to integrate their capabilities into your bank's site or app. In addition to supporting an array of digital marketing initiatives, these ‘tags’ collect unique behavioral data that can also be on-boarded as actionable information into your CDP. Popular Tag Management platforms such as Tealium, Google Tag Manager and others can be directly integrated to your CDP.

4. Open Banking

If you are not familiar with the term, Open Banking is the initiative that allows banks to securely give access to third-party institutions.  CDPs can help your open banking initiative in terms of how to manage, store, share, and treat customer data.

Under the Open Banking philosophy, a platform such as a CDP is able to draw on the data a customer consents to share with their bank and its partners. In this case a CDP is capable of generating powerful insights and personalized recommendations about an individual and a business, as well as give control to customers of their personal data so they decide what should or should not be shared with 3rd parties. 

5. B2B and B2C Banking Interfaces

With a CDP,  marketers within the financial services industry are able to leverage rich data about individuals and businesses across touchpoints. This means that one-to-one personalization can be extended to your website, mobile application, advertising networks, chat bots, telecommunication systems, local branch systems (to give insights about clients to account managers), and even ATM machines.

A true Banking Customer Data Platform, allows marketers to create unique experiences across any touchpoint.  As a result, marketers can connect with their audience, regardless of channel.

In short, a CDP becomes the multi-faceted hub for your targeted marketing.

6. Data Insights

Data insights compile information you've gleaned about your audience and customers, boosted by analytics, manual and predictive segmentation, and deep reporting. A CDP enables, banks to analyze all of the data collected about their audience and design hyper-personalized marketing strategies, boosting trust between the bank and their audience. 

Via Data Insights, a Customer Data Platform Allows Your Marketing Team To:

  1. Focus on data-driven marketing
  2. Find hidden opportunities and translate them into revenue
  3. Ensure communications are highly personalized to improve performance across touch-points

7. AI Orchestration

Artificial Intelligence Orchestration is the intuitive automated use of gathered customer data to build predictive customer journeys and offers a solution to anticipate your audience needs, regardless of the lifecycle stage of an individual or business account.

Through a CDP, identity and behavioral data can be leveraged to predict what they might do next, or when they might be most receptive to certain offerings based on past behavior.

Much like other data driven marketing techniques, the anticipatory nature of AI-driven marketing helps strengthen the relationship with a given customer with respect to their individual requirements, desires and needs. It also allows you to automate the recommendation of content, products, services, and offers which might not have been recognized without the power of a CDP and a Unified Profile.

AI Orchestration Allows Your Marketing Team To

  1. Identify clusters of companies and individuals that share similar attributes and characteristics based on predictive scores. As well as use these clusters to find lookalikes.
  2. Build at scale automated Single User Journey’s across different types of technologies and channels according to communication preferences and intent.
  3. Stop wasting time on projects that could be automated via AI, resulting in increased productivity. You have the ability to reserve repetitive tasks for machines!
  4. Add human-relationships to the overall equation which we will be talking more in-depth later on this article.

8. Tech Automation

Tech Automation is the key to delivering automated marketing communications across channels but it can also to be leveraged to trigger automated tasks via platforms such as Zapier to boost your organization's productivity.

9. Hyper-Personalization

It's easy to confuse Hyper-Personalization with Personalization, but the differences--while subtle--are crucial. Most marketers, whether they work in banking or elsewhere, are familiar with personalization.  For example, Personalization drives Amazon's algorithms to recommend you productivity books because you purchased The 7 Habits of Highly Effective People.  It's what helps Netflix decide which categories or types of films and tv shows to put on your home page based on what you've previously watched or "people like you" are watching.

Hyper-Personalization, relies on understanding customer intent by curating granular data from multiple data sources across technology landscapes (AdTech, MarTech, FinTech), analyzing it, and turning it into specific and dynamic insights and recommendations regardless of the touchpoint based on how that customer behaves, and what sort of marketing communication will most appeal and be relevant at the right time to every single facet of their behavior. 

Your banking experience depends on remembering, surprising and delighting your audience! 

Your marketing team can use hyper-personalization to:

  • Surprise your customers by anticipating their needs, and show them what they want before they have to search for a solution.
  • Remember their preferences and intent across touchpoints and act as a support system that adds value instead of a simple transactional system.
  • Delight them with tailored content, offers, products and service recommendations as they navigate through different channels and interact with your bank's touchpoints.

10. AI-Driven Human Enablement

A powerful CDP isn't just designed to collect data or deliver hyper-personalized engagements. It's designed to empower individuals across departments throughout your organization to connect with customers via enriched data insights.

While many think that CDPs only work for marketers, every department can benefit from the enriched data marketing has collected, whether it's the experts in your call centers, your technical support staff, or your sales team. Even your account managers at branches can work better with customers as a result of the data you collect.

Human enablement ensures that your organization is working in sync to connect with your audience, and that clients are convinced that every element of your organization is working for them, and showing interest in their needs. 

How Does AI Support Human Enablement?

Imagine you were a robot and you could predict the best person in your organization across departments to engage with a potential lead or client. Who would you activate, based on what criteria, circumstances, and with what end goal?

What about this WCCE Human Micro-moment ?

  • Who: Message ["Employee X"] from ["Department Y"] to call ["Client Z"].
  • Criteria: When ["Clients"] reach a ["predictive score of 50+"] towards ["Loans"]
  • Circumstance: Help ["Client Z"] find a Loan Product that fits his budget and long-term financial goals.
  • End Goal: Establish a relationship with ["Client Z"] and promote the adoption of our other products since ["Client Z"] has checking and savings accounts.

This is why so many successful banks use the data collected by CDPs to enable the human elements of their outreach: customer support, call centers, sales representatives, and account managers.

With a  CDP, the people within your organization are better able to build one-to-one connections with customers, not just via digital engagements, but also via human relationships.

Conclusion

A Banking Customer Data Platform is the foundation not only for marketers but for your overall institution to deliver the banking experience your audience is craving and your financial institution depends upon. 

Banks should think in innovative ways to improve their marketing operations, and further develop their own intellectual property and product roadmap, as is frequently the case to remain competitive and positioned at the top of the Banking Helm.  Adopting a CDP is a sterling investment to support this goal, and most importantly creates a journey towards positive customer experiences that result ultimately in both new and retentive revenue achievements.  

Sponsored by

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Did you Know? Innovative Marketers Already do!

At ForesightOne we can help your FinServ Institution develop an Innovation Center of Excellence and leverage innovative technologies such as Lemnisk's Customer Data Platform to drive marketing performance.

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