Actionable Insights From APT's Retail Practice
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Taking Your Customer Analytics Beyond Campaigns

July 31st, 2017 | Posted by Haley Jackson in Analytics | Financial Services | Hospitality & Travel | Insurance | Marketing & Media | Restaurants | Retail - (Comments Off on Taking Your Customer Analytics Beyond Campaigns)

Researching. Browsing. Transacting. These are all components of the customer journey, and now more than ever, they are taking place beyond physical channels. While the process of researching and browsing increasingly shifts to online and mobile platforms, the majority of consumers still prefer to transact in brick-and-mortar locations. As a result, while physical channels certainly remain relevant – to a varying extent – the way organizations across industries evaluate new programs and initiatives must be customer-centric.

Many best-in-class organizations have already established a standardized test vs. control approach with which to evaluate new initiatives. Business experiments at the customer level are common in areas such as marketing, where leading companies leverage customer analytics to measure the true impact of their campaigns. But as the question for executives shifts from “How do we collect more data?” to “How can we use our data more effectively?”, decision-makers must think outside of the box in their application of customer analytics.

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Introducing “Zelle”: How Banks Can Capitalize on the P2P Trend

July 18th, 2017 | Posted by APT in Financial Services - (Comments Off on Introducing “Zelle”: How Banks Can Capitalize on the P2P Trend)

Millennials’ zeal for peer-to-peer (P2P) payments may go mainstream. Zelle is a P2P payment service that offers the transfer of money directly between customers’ bank accounts. It is the result of a collaboration between over 30 banks, connecting over 86 million U.S. customers and requiring only the recipient’s email address or phone number to transfer funds. Unlike most existing P2P services, which delay deposits by several days, Zelle enables instantaneous deposits into customer’s bank accounts directly from their mobile banking application.

Zelle is just one example of the many new mobile capabilities, such as contactless payment and mobile deposits, which banks are adding to compete with Fintechs. Venmo, a current leader in digital P2P payments, and Stripe, a global online payment service, are two firms that are pushing the industry forward. As Fintech players continue to disrupt traditional financial services models and consumers become more digitally savvy, banks must enhance their digital offerings to remain competitive. Many of them already are: APT research shows that more than 85% of banks are focused on strengthening their mobile capabilities and improving digital onboarding to accelerate channel migration.

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Getting Over Promo FOMO

July 11th, 2017 | Posted by APT in Financial Services | Promotions | Retail - (Comments Off on Getting Over Promo FOMO)

What is “FOMO”? It’s simple: the Fear Of Missing Out. This term has traditionally been used in social settings, for example: “Jane had major FOMO when she was out of town for the summer party, because her whole team attended and it was always fun.”

However, the FOMO epidemic has now spread from social circles to the business world. Many organizations are experiencing FOMO when it comes to optimizing their promotional strategies – or, in other words, suffering from “Promo FOMO.”

Consider an organization that deploys a promotional campaign, first trialing it with a subset of customers to understand its impact. In this common scenario, there is a challenging balance to strike. Executives want to maximize the exposure of the campaign to the most relevant customers to avoid missed profit opportunities. However, the process of using test vs. control analysis to evaluate a campaign requires holding out a group of customers from the campaign in order to have a baseline comparison – meaning that fewer customers are receiving the campaign.

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The Customer Acquisition Challenge

May 30th, 2017 | Posted by APT in Financial Services - (Comments Off on The Customer Acquisition Challenge)

The market for financial products is more crowded than ever. How can financial institutions not only capture new customers, but acquire the right ones, and create enduring relationships?

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Financial Services Organizations Leverage Analytics to Fight Account Fraud

May 11th, 2017 | Posted by APT in Financial Services - (Comments Off on Financial Services Organizations Leverage Analytics to Fight Account Fraud)

Proactively combating account fraud is currently top of mind across the financial services industry. In addition to changing sales incentives and investing in employee education, banks are increasingly investing in advanced analytics to root out instances of fraud.

As application volume has increased substantially in recent years, one leading U.S. issuer noticed that the number of non-authorized accounts was growing proportionally. Recognizing an opportunity to strengthen its fraud detection process, the issuer used APT’s Test & Learn® software to build propensity models that determine a new account’s likelihood of being fraudulent.

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The Channel Migration Challenge

April 20th, 2017 | Posted by APT in Financial Services - (Comments Off on The Channel Migration Challenge)

When asked about future strategies, APT research shows that financial services institutions (FSIs) consistently report a focus on enhancing omnichannel offerings to meet the needs of a rapidly evolving customer base. Specifically, 60 percent of banks surveyed highlighted channel migration as a strategic priority, and 100 percent of those respondents said they are focused on improving digital onboarding processes to accelerate this channel migration.

Based on those findings, it is clear that banks aspire to create a seamless experience across channels and reduce reliance on the branch for transactions. This is a win-win shift for FSIs and customers alike. For banks, there are significant cost savings, and customers gain a more convenient and seamless banking experience. Further, research from Bain indicates that omnichannel customers are more loyal to their primary bank than those that only bank in one channel.

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Information Age: The key steps to achieving data quality over quantity

August 5th, 2016 | Posted by Haley Jackson in Financial Services | Manufacturing | Retail - (Comments Off on Information Age: The key steps to achieving data quality over quantity)

In an article featured in Information Age, APT’s Marek Polonski discusses how businesses can make the most of the data already available to them to drive better decision making and increase revenue. He outlines how to make an organization’s data actionable in five key steps. The first? Don’t be a perfectionist when it comes to data collection. Click here to read about the other four.

Banking Strategies: Top Trends for 2016

January 8th, 2016 | Posted by JDouglass in Financial Services | Uncategorized - (Comments Off on Banking Strategies: Top Trends for 2016)

Banking Strategies recently published an article by APT SVP Will Weidman, naming the top trends that FIs should watch in 2016. Weidman says, “2016 is looking to be one of the most transformative years in financial services in decades. Disruptive competitors are growing, digital and mobile continues to evolve, branches look more and more like Apple stores and interest rates have started rising. Banks will need to embrace smart innovation not only to keep up, but to truly differentiate themselves in a cost effective manner.”

Click here to read more (requires subscription).

Evolution of the financial advisor: balancing autonomy and standardization

July 23rd, 2015 | Posted by retailblogadmin in Financial Services | Uncategorized - (Comments Off on Evolution of the financial advisor: balancing autonomy and standardization)

From front-end products such as online banking and mobile payments to back-end operations such as processing transactions, leading banks continue to seek centralized, automated solutions to maximize efficiency.

However, wealth management practices and operations remain significantly less centralized. There is still a lot of debate regarding the efficiencies that can be gained by streamlining financial advisor operations through corporate resources. (more…)

The Data Culture Balancing Act

February 5th, 2015 | Posted by Joel Read in Financial Services - (Comments Off on The Data Culture Balancing Act)

McKinsey & Company recently posted an excellent article, “Getting big impact from big data,” and addressed a proverbial elephant in the room: while most executives believe big data analytics is a critical tool for success, fewer companies have been able to successfully use analytics to drive major business decisions.

So what is preventing organizations from unlocking the value of their data? According to McKinsey a major barrier has been internal organizational cultures that are not familiar with analytical practices and therefore unwilling to take ownership of a new system with unproven results. This keeps organizations from being able to operate data driven initiatives at scale. So while software solutions can help, there is also a significant cultural challenge that needs to be overcome for organizations to realize the full value of big data. (more…)