Real-time marketing works by leveraging artificial intelligence (AI) and learning algorithms. It responds in real time to specific user behavior, triggering a predefined action (what we call a real-time trigger or real-time event). The prerequisite is that business-specific usage scenarios (what we call real-time use cases) have been defined beforehand. The interaction of real-time use cases, triggers and events enables companies to provide more responsive services and, as a result, a stronger focus on the customer experience.
Timing is everything
Even though many trends are moving in the direction of "everything, immediately, now," real-time use cases are still not standard in the Swiss finance world. And real-time use cases also need to be carefully considered to see if they are really worthwhile. After all, the requirements for implementation are often quite complex — and costly.
In this respect, "timeliness" is the decisive criterion from my point of view. Whether this is real-time or not is less crucial than the fact that it must be appropriate and relevant from the customer's point of view. The event must occur at the right moment for the particular customer. That way, the chances are good that the automated measure will be successful.
The right real-time triggers for banking and insurance
Banks and insurance companies, in particular, have many use cases that require real-time marketing, especially if the ambition is to provide adequate support to customers. Most use cases are in the area of risk and fraud processes. Here, irregularities and anomalies in customer behavior need to be detected within seconds and responded to appropriately.
But more and more, financial and insurance companies are also turning to real-time use cases in marketing. If you take a look at the potential advantages, it quickly becomes clear why.
The use of real-time marketing:
- Increases timeliness and relevance for the recipient
- Increases the likelihood of response
- Promotes customer loyalty
- Strengthens the brand image (up-to-date, relevant, dynamic)
- Saves time and costs through automation
- Avoids churn thanks to individual communication
The prerequisite for successful real-time marketing strategies is, of course, an up-to-date database. No matter how good your product range or services are, if customers come across outdated products or expired offers online, both the customer relationship and the brand image will suffer. As a result, careful data maintenance is critical — including customer contact data, product details and/or services and behavioral/interaction data.