Financial services providers can improve their businesses by using segmentation to develop a more accurate understanding of their customers. Segmentation can benefit providers in many ways:
- Stronger and deeper customer relationships
- Improved product uptake
- Greater awareness of new product opportunities
- Flexibility and agility to adapt to customers’ needs
It is often the case that providers in emerging markets adhere to traditional methods of segmentation—classifying their customers based on a single characteristic. This guide shows providers how they can use data analytics to understand their customers by performing more complex analyses and extracting insights that were previously hidden.
The first step toward segmentation driven by data analytics is to gather useful data. Most financial services providers have information about their customers’ demographics and use of products. This technical guide shows providers how they can clean up and use this data to segment customers in powerful ways.
It also explains how providers can leverage a qualitative understanding of their customers to analyze the data available to them and gain useful customer insights.