Location Intelligence, Spatial Data Analysis | Pitney Bowes
Location Intelligence enhances the view of Financial Services customers
As financial services providers reorient themselves to become more flexible, responsive and customer-focused, reliance upon data and new technologies are more central to strategies to win customer loyalty and market share.
The financial services sector faces challenges to its profit margins that began with historically low consumer interest rates in the 2008 financial crisis. Compounding that decline are generational and technological shifts, as well as an increase in digital and mobile self-service technologies. The industry is meeting these challenges by becoming more flexible, responsive and customer-focused. Reliance on data and the new technologies has become more central to winning customer loyalty and market share.
A key component of the customer-focused strategy is location data. “Today, instead of a ‘who’ and ‘when’ and ‘what,’ it’s the ‘where’ that is driving a lot about what a bank can ascertain about a person,” says Jim Burnick, Managing Director of Global Financial Solutions at Pitney Bowes.
Read The Context of Place: Financial Services and Location Intelligence, a Forbes Insights brief sponsored by Pitney Bowes, to learn about key areas where location can impact the customer experience.
Identify the key areas where location intelligence provides value
Location intelligence is more than a customer address. Location data is enriched with attributes that provide context that can give a more complete view of customer relationships, preferences and interests. Two key areas where location can impact the customer experience are channel optimization and site selection.
- Channel optimization: As the need for physical branches declines because of the shift to digital self-service channels, financial institutions must decide which branches to close, where to locate new ones and which services to offer in each branch location. Location intelligence and analytics furnish contextual data about the areas where customers work, play and shop to help banks make more accurate decisions, not only about site selection, but also about product and service offerings across digital and physical channels.
- Site selection: Location intelligence helps financial institutions better understand the profiles and advantages of one location versus another, clarifying where retail locations would best serve their needs. By layering in relevant and contextual data attached to a particular area, location data helps build a fuller picture of the customers located there. That, in turn, can help banks understand how to staff the branch and determine realistic sales and profitability targets.
Location intelligence provides value to financial institutions in other areas as well, including helping to optimize offerings and geo-fencing. Geo-fencing refers to the very specific and precise boundaries that can be placed around physical locations and trigger actions when people carrying mobile devices “break” those fences, on the physical path to purchase.
The bottom line is that location data and intelligence are important tools for financial services, helping the industry improve customer experience across physical and digital channels.
To learn more about how Location Intelligence provides value to the Financial Services industry, read The Context of Place: Financial Services and Location Intelligence.
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