‘Personalisation gives a feeling that a brand truly knows the customer’

The e4m Pitch BFSI Summit 2024 saw a panel of industry leaders examine the evolving role of customer experience in shaping brand identity. The session titled "The Leaders of Today: Customer Experience = Brand Identity," centered around how marketing is increasingly becoming an experience-driven and human-centric design activity.

The discussion brought together Ashish Pawar, Head of Marketing at Tata Asset Management; Navanil Sengupta, Associate Director - Brand, Communications and Growth at JM Financial Services; and Raghav Maheshwari, Chief Business Officer at Mobavenue Media Private Limited, with Ankit Banga, Chief Business Officer at FCB Kinnect, leading the session.

Banga set the stage by noting how the BFSI sector has evolved dramatically by 2024, with changes seen in everything from transactions to loans, insurance renewals, and mutual fund investments. He highlighted the sector’s growth, noting a current CAGR of 30-31%, up from an average of 15% over the past 15 years. "We’re becoming the fifth largest stock broking country in the world," he added, mentioning that 40% of insurance renewals now happen online.

He credited technology—AI, machine learning, cybersecurity, KYC, Aadhaar—and emphasised how enhanced customer experience has made banking simpler. "Earlier, investing in mutual funds involved 27 signatures. Now, it’s just a click," he explained. Banga then invited the panellists to share how customer experience has given them a competitive edge and transformed their marketing strategies.

Sengupta responded by emphasising two key pillars: simplifying the user experience and ensuring relevance. We don't want our apps to intellectually challenge them or test their IQ; we want our apps to be as simple as possible so customers come in, do their business, and move out. Second, we must ensure that we are relevant to what our customers are looking for. These are the two pillars that leaders in the broking business have been trying to maintain."

He elaborated, “If I have to take an example specific to JM Financial, we have created a hyper-personalised nudge engine — HPNE. It tracks customer movement in the app, observes their behaviour, and creates a curated experience based on their activities, like what they are buying, selling, or spending time on. The concept of 'one customer' is pivotal in creating highly personalised experiences."

Personalisation gives a feeling that the brand truly knows whom it's interacting with. It's a tremendous high for any customer to see that the brand gets them.

Maheshwari reflected on the importance of simplicity and personalisation in customer experiences. "Simplicity and personalisation are key," he said. "We all have experiences with BFSI products, whether good or bad, and these experiences are crucial given the wide range of choices and decreasing consumer patience."

He continued, "In today's world, providing the right experience at every touchpoint is essential. Simplicity is critical, and to scale effectively, digital solutions are necessary. Whether using AI, personality cohorts, or city-based lookalikes, there's no one-size-fits-all solution. You can't be everything to everyone, but you can be something to someone, which enhances the overall customer experience."

Next, keeping Tata Mutual Fund in context, Pawar talked about the importance of a customer-centric approach. "We keep the customer at the centre of everything, from small decisions to larger ones," he said. "In today's digital age, we aim to be a human-first brand. For instance, if a customer requests tax information in June, we will proactively follow up the next June, even if they haven’t asked for it again."

He continued, "The goal is to be a friend to the customer. We strive to offer a human-centric approach in every decision we make, supported by technology but centred on genuine customer care. Whether through a call centre or a chatbot, we focus on ensuring that every interaction feels personal and supportive."

Banga continued the discussion by raising a critical question: With BFSI historically being very human-centric, how can companies maintain this personal touch while scaling up their operations? He questioned how the industry, which involves asking customers to invest their money, can achieve this balance of preserving strong customer relationships amidst growth and scale.

Pawar responded by sharing a recent initiative. He explained that they recently implemented a hyper-personalisation pilot for 500,000 clients. "When the market declines, we send out personalised videos to clients through their relationship managers," he said. "These videos, created using AI, include the client's name and are designed to address current market conditions."

He elaborated, "For example, if the market goes down, an RM sends a video to the client with a personalised update, such as, 'This is Ashish, and here’s a brief on the current market situation.' We’ve scaled this approach and are now expanding it."

Pawar also mentioned other innovations, including automated AMP mailers that provide daily updates on portfolio performance, demonstrating how they are managing personalisation at scale.

Sengupta discussed the balance between DIY and managed services in stockbroking. He explained that traditional brokers, like HDFC and JM Financial, still use physical branches and personal touchpoints for larger clients, as these clients often require a higher level of trust and reassurance.

He detailed their approach: "We've divided our customers into DIY and managed service categories. For DIY clients, we use our BlinkX platform, while those with larger investments are guided through our GM Pro managed services." Sengupta described a customer activity prediction model they use to determine which clients might prefer DIY versus managed services.

Sengupta noted an interesting trend, "Recently, we've observed a significant transition from DIY to managed services as clients' portfolios grow. This shift shows the increasing need for personal guidance as investment amounts rise."

Highlighting the changing expectations in BFSI, Maheshwari said, "For newer users, seamless and efficient experiences matter more than whether interactions are with a human or a machine," he said.

He cited Maruti Suzuki's shift to automated, personalised call centres as an example. "Their bots adapt to the caller's language and needs, showing the potential of AI in customer service," he noted.

He added that while these innovations are promising, they are still evolving. "What was unthinkable five years ago is now becoming a standard for experimentation," he concluded.

Taking the session forward, Pawar discussed the fine line between personalisation and intrusiveness.

"It’s a thin line," he said. "We track every communication, analysing open and click rates to refine our approach. If a customer isn’t engaging, we automatically switch to alternative methods like WhatsApp or SMS. If there’s still no response, we pass the data to our call centre for a follow-up, but we avoid over-communicating to prevent losing the customer. Algorithms guide us on the best offers and timing, and we use a calendared approach to manage communications without overwhelming customers. Balancing business pressure with customer experience is challenging, but a unified view of the customer helps manage this balance."

Sengupta discussed the balance between personalisation and intrusiveness in their approach. "Our hyper-personalised nudge engine provides warnings rather than intrusions," he explained. For example, if an active investor transitions to F&O, the system alerts them to potential risks. While some might view these nudges as intrusive, Sengupta justified their necessity, given today's fast-paced nature of trading. He emphasised that despite potential revenue losses, their policy of avoiding cross-selling helps prevent over-communication.

Sengupta also highlighted their use of a Customer Data Platform (CDP) to manage communication. "We track customer interactions closely and have implemented caps on message frequency to avoid overwhelming users," he said. Reflecting on past feedback, he admitted that their initial over-communication led to poor reviews. "We've since restricted messages to two or three per channel, balancing user satisfaction with cost management," Sengupta concluded.

Maheshwari addressed the significance of an omni-channel strategy in mitigating intrusiveness. He noted that a practical omnichannel approach involves seamlessly integrating various customer touchpoints—such as in-branch visits, app interactions, and online activities—to avoid overwhelming users with repetitive ads. "Tracking customer interactions across multiple platforms is crucial," Maheshwari explained. "For instance, understanding how a customer engages with different media, from YouTube ads to live events, helps in reducing over-communication."

He further emphasised the role of Customer Data Platforms (CDPs) in enhancing this strategy. "By leveraging CDP data, we can build more sophisticated targeting funnels," he said. "This integration allows for better tracking of all touchpoints, which not only minimises intrusiveness but also strengthens brand presence by ensuring a cohesive customer experience across all channels."