According to research conducted by Capgemini, the lack of consumer analytics in commercial banks is proving to be a large impediment to their growth and success. The research shows that banks applying analytics to customer data have a four-percentage point lead in market share over banks that do not, and that banks investing in analytics to understand customer attrition have a 12-percentage point lead over their competitors.

Moreover, with only 37% of customers satisfied with their bank’s understanding of their needs and preferences, Capgemini’s research indicates how customer analytics could help banks increase their revenues and gain market share.

The global CEI index average (a score that measures customers’ banking experience across 80 different touch points) increased by 1.2% from 2012 to 2013, yet Capgemini noticed the following key findings in spite of this increase in customer satisfaction:

–       10% of customers globally say that they are likely to switch banks in the next six months, while 40% are not sure whether they will stay with their bank in the 6 months time.

–       The quality of overall service is the primary factor that determines whether a customer leaves their bank or not.

–       Positive customer experiences are strongly correlated with the trust customers place in their banks and with the customers’ belief that their banks have a good understanding of their needs

The research from Capgemini is based on a survey they conducted with more than 18,000 customers participating in 35 countries across six geographic locations. The results of the research, according to consulting firm, show that banks must invest much more money in customer analytics in order to retain their customers, or risk the chance of losing their customers to those banks investing in such activities.

Read a summary of the research paper here

Read the research paper here

(Image Credit: J J

Trak.io, a customer analytic service for tracking user interaction with apps, is coming out of beta. Trak.io announced today that it would be receiving a $150k investment from Kima Ventures.

Trak.io is primarily targeted at tech startups. It allows companies to monitor and track their customers use of mobile and web application to build insights on what kind of attention their customers’ need and what their product can improve on.

Liam Gooding, the CEO and co-founder of Trak.io, commented on the news.

“Our mission is to enable startups to focus on their customers by providing an actionable analytics platform that’s usable by the whole team. Marketing want to know which traffic sources convert the best, Product want to know which features are getting used the most, Sales want to know who’s ready for an upgrade and Customer Success need to know who’s struggling and maybe thinking about cancelling. Trak.io is a way to find answers about your customers, regardless of who’s asking the question…one huge area we’re innovating on is machine learning and pattern recognition. Imagine if we told you which customers were thinking about canceling next month, so you could pull them back?”

(Image Credit: ninako)