Cross-selling & up-selling in a utility-driven market: The case for modeling financial user personas beyond simple demographic segmentation

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In today’s market scenario, financial companies must design user experiences that sustain engagement as well as meet the portfolio need to up-sell and cross-sell new products or features to customers. This requires a sophisticated understanding of product utility as well as the key drivers of user engagement among different financial profiles. Simple user segmentation isn’t enough anymore. To strike a profitable balance between customer experience and business growth, financial companies must extract deep behavioural insights that help them map users to new features that are immediately useful. At 3LOQ, we feel that the first step in solving this complex problem is to identify unique user personas that have distinct engagement drivers. 

The current approach to financial user segmentation - that of grouping users on the basis of demographic variables alone - falls short of the need at hand. User personas segmented in this fashion do not give product and marketing teams an insight into the actual need of the users; instead, it dilutes the efficiency of cross-selling & up-selling efforts and, in some cases, even causes customer fatigue due to irrelevant campaign promotions. 

Rising to the challenge, our star team of data scientists and engineers put their weight behind creating a solution to model financial user personas on demographic as well as distinct behavioural attributes such as risk appetite, loyalty, banking channel affinity, lifestyle and more. The model derives its results from an advanced, blended analysis of variables relating to transactions, demography, campaign response and other factors. The hard work that went into crafting such an intricate solution is paying off - our clients are benefiting from a deeper understanding of their customers, their needs and their usage patterns. Such segmentation modelling sets the perfect foundation to be able to predict and prescribe financial journeys that not only meet a user’s immediate financial need but also help grow his/her relationship with the brand through the usage of new products and features. 

As utility-based marketing grows in importance, especially in a post-pandemic market, simple demographic-based segmentation isn’t enough anymore to truly understand and meet user needs. The future of financial marketing hinges on a deep understanding of the customer and the market is turning to technology to help identify customer segments with unique drivers. We believe that AI-driven segmentation is here to stay.