Big Data vs. Your Data

shutterstock_1166971421BIG DATA is the latest buzz word circulating around marketing and banking professionals. People keep stating that BIG DATA is a “game changer” and that you must find an expert to help you translate that data into big profits for you business. For those who are in the financial industry, consider this; before you go deep-sea fishing in big data, consider your own little pond of data first.

Industries like community banks have a huge advantage. For example, when opening a checking account or closing a loan, banks are required to collect information from customers. Information like addresses and credit scores must be obtained by lay.  In addition to that, this information is stored all in one location. Think of all the opportunities when it comes to target marketing.

  1. Direct Marketing:  Not only do we have customer contact information, but we also know what services they already have.  These two pieces of information can lay the groundwork for a direct marketing campaign.  Businesses dish out money to gain home addresses, phone numbers and email addresses; and we already have this information on file.  Match a list of customers who are missing out on a great service and BOOM, you have started planning a direct marketing campaign.  Now you set a deadline, roll out a schedule, create collateral and perform training.  Easier said than done, but at least the first two steps, which are usually the hardest parts, are completed.
  2. Cross Selling:  If a customer is coming in to open one account, there are several opportunities to offer additional products and services that can help your customer.  For example, when a new customer closes a loan, there are several opportunities for cross selling.  You know if they can qualify for a credit card, you can help them open a checking account (with a debit card), assist them in starting a savings account…and on and on the list goes.

The great thing about using the data you already have is that you are working with people who already know your business.  There is no need to start from scratch, the customer has chosen to do business with you company.  Create a relationship and build on it!  The important thing to focus on is how can the new service benefit both the customer and the bank.  You don’t want to give out loans to people who you know cannot repay them.  You also don’t want to force a service on somebody that doesn’t really need or want it.  Find a situation where both your business and the customer walks away a winner.

By doing this, your company will do right by your customers and this in turn can create referral sources from customers via their friends, family and coworkers/staff.

It may not be BIG DATA, but this can lead to BIG PROFITS.

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About Jeremy M. Price
For twelve years, I had the pleasure of working in community banking. Starting in customer service, I worked my way up to a senior level marketing and human resources director. It was great leading teams that improved strategic initiatives including, but not limited to brand awareness, digital communication, employee development and product development. This experience has now led to an exciting role with CRS Data. As the Product Marketing Analyst, I am currently reviewing the company's banker suite product. This product is able to help community banks reach their fullest potential in real estate lending. I am extremely fortunate to share time with my son while enjoying life in East Tennessee. The two of us enjoy the views of the Smokey Mountains, eating good food and having fun. During my free time, I enjoy running races, traveling and listening to great live music.

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