Reference no: EM133588710

Dale Carnegie wrote, "Remember that a person's name is, to that person, the sweetest and most important sound in any language."

People want personalized experiences because they can make their lives easier. For example, when an online retailer suggests products to a customer based on their shopping history, their customers spend less time searching for what they want. Personalized products and experiences make customers feel unique in a sea of sameness. Organizations want to create personalized experiences for their customers, as they can increase customer satisfaction, retention, and engagement. We are seeing more and more organizations create more personalized experiences. But some industries are further ahead in this journey than others.

Offering personalized services can increase customer retention, satisfaction, and revenue of financial institutions. Traditionally, financial institutions have struggled to fully leverage the power of personalization. The primary reason is because their customer data is often fragmented, residing on disparate systems. Combining, enriching, and developing machine learning (ML) algorithms from this fragmented data to create personalization at scale can be difficult and expensive. The increase in demand for personalized experiences is putting pressure on financial institutions to solve this problem. As they noted, personalization can be critical for their long-term success of their businesses because it can build customer loyalty. Hence, financial institutions are now using personalization to reshape their role in people's lives, adding more value than ever before. Personalization can help consumers save time and make better decisions.

Despite wanting simplicity and personalization, people also want choices, and the ability to determine what is right for them. Consumers want a more personalized banking experience, such as relevant offers, advice, and fraud alerts, because it can help them make better financial decisions, increase their security, and more efficient use of time. For insurers, more personalized customer experiences can help reduce customer churn, increase transparency and customer satisfaction through the claims process, and grow premiums by enabling agents, brokers, and call-centre representatives to provide more relevant product recommendations and advice.

Adapted from "Modernizing Financial Services: Improving the Customer Experience with Personalization." - The Wall Street Journal, Oct 28, 2022.

Question 1

In their desire to become customer driven, many companies are realizing that they need to thoroughly examine the kind of customizations their customers would value before they plunged ahead with this new strategy.

How could banks utilize each of Pine and Gilmore's four types of mass customization to enhance value for its customers. Show examples and screenshots.