Metrics for the Current Retail Financial Services Market
Marketing success in today’s highly volatile and competitive retail financial services environment depends more than ever on understanding market dynamics and challenges, and predicting results. Effective marketing requires quick and actionable answers to questions regarding your market’s:
Opportunities:
§ Does your view of the current retail financial market extend beyond historical data and conventional demographics?
§ Are your resources aligned with the market’s current opportunities?
§ Across media?
§ Across branches or markets?
§ Across sales channels?
Risks:
§ What is your overall customer attrition risk?
§ What is your high value customer attrition risk?
Typically, answers to these questions were provided by marketing business intelligence (BI) driven mainly by internal sources, historical data, and descriptive vendor-supplied demographics: Valuable but incomplete as the basis for decision support. There needs to be a direct, granular measure of the relationship between the current market opportunity or risk, resources expended, and performance achieved.
Transforming marketing intelligence into BI and tactical metrics is often costly or impractical. The value from intelligence and insights developed by market research and analysis is largely confined to internal presentations and documents: BI integration is not in the picture. Thus, BI applications supporting marketing and senior management impose a limited view that stifles competitiveness and innovation.
Empirics BI
To assure BI market relevance the metrics that support marketing decisions must relate to today’s market. The market metrics must be:
Universal: Uniformly represent all of the market across all competing
channels and institutions
Representative: Market metrics correspond directly to financial products,
services, and target behaviors
Current: Metrics must represent today's consumer financial product buying
behaviors and dynamics
To provide these benefits, Empirics BI offers a series of granular, behavior-based metrics that provide BI insights to the current retail financial market via user-friendly dashboards. There are three service tiers that progress from strategic to tactical to operational, based on the client’s product and geographic needs:
Empirics BI Solution Overview View Value Description Current Market What are the current product potential, mobility, and financial behavior of my markets? What business objectives can be are attainable? Geographic views of standardized markets provides market potential and behavioral metrics to support strategic analysis and planning Customer / Prospect Benchmarking Is customer value being realized? What is my competitive exposure? Are my customers more or less loyal than average? Is marketing targeting the best prospects across markets? Customer, campaign, and prospect data is benchmarked and evaluated in context with market-based metrics to provide tactical analysis and insights Marketing Operations Benchmarking How well are marketing channels and resources aligned with the current opportunities across markets? Where are the best ROI gain opportunities? Customer, prospect, and sales/marketing channel data is benchmarked and evaluated against objective measures to provide current market-based performance metrics