Control is a very interesting notion regarding human behaviour and thinking. When customers feel they have control over their choices, it promotes emotional attachment. The self-selection of features leads to higher satisfaction and psychological ownership, eventually contributing to happiness and a higher service value.
How Personalisation Worked For Big Brands
It is a huge trend towards co-creation and personalisation, moving from attention economy to participation, where the customer is considered not only the recipient of value, but also a co-creator of value, not as part of a segment, but instead as unique individual with specific goals and preferences.
This concept has been proven successful by the well-known brands, most of them in the retail industry, but the financial sector is also catching:
- Coca-Cola’s extremely successful marketing campaign Share a Coke allowing customers to put their names on the bottles
- NikeId offering customers to customise and design their footwear
- Lanieri – a pure Italian brand allowing men to express their style and taste through custom-made suits and shirts
Customers are spoiled by the tailored approach of well-known brands and expect the same experience from their financial providers. Compared to the retail industry, the financial sector has a big advantage, due to the significant amount of customer data that is collected through various applications and transactions, and that can be potentially used for redesigning current products and services, focusing more on customers’ beliefs, goals and preferences.
The Winning Strategy
Not too many financial industry players have reached this point yet, although some are heading in that direction. This is the reason why Fintech startups are disrupting the financial industry, implementing customer-oriented approaches and personalisation strategies throughout the customer journey.
From insurance to wealth management, from peer-to-peer lending to payments, Fintech startups are transforming the financial system. They attracted $5.2bn in the first quarter of 2016 alone. Customers have many reasons to flock towards Fintech offers: low-cost, user-friendly interface, accessibility, transparency and exciting customer journeys.
There are more than 50 startups in Europe developing and providing automated investment management advice and the space is getting crowded. Unfortunately, most of them are far from personalised solutions. The majority of current robo-advisors offer model portfolios based on risk assessment questionnaires. It means you will be placed into one of the various portfolios based on your risk tolerance. But customers are more than just investment portfolio 77. They have many goals, beliefs and values that they would like to be reflected in their portfolios. Robo-advisor providers should realise that one-size-fits-all investment strategies will not work for all investors.
Personalisation nurtures deeper relationships with each customer and could potentially add a human touch to the services offered by robo-advisors. Everyone appreciates being able to set up a service in just the right way to fulfil their own needs. It is not about technology or functionality, but the meaning that people assign to a certain service. If you want to win the battle for customers in the red ocean of bloody competition, it is time for embracing personalisation in your offerings. Treat your customers like a person, not just like a number, putting them at the centre of everything you do.