Most traditional banks are grappling with customer churn and low engagement with their offers. Customers today expect to be treated as a segment of one—receiving relationship-based, personalized offers that reflect their unique needs. Static, one-size-fits-all campaigns no longer drive loyalty or conversion; meaningful, personalized engagement is now the core of effective, dynamic offer management.
To deliver this, banks need deeper customer intelligence, more agile offer creation, and the ability to activate hyper-relevant propositions in real time across every channel.
Business Case for Personalization
Effective personalization strategies can yield substantial rewards — financial institutions with USD1001 billion in assets stand to gain up to $300 million in additional revenue by engaging customers in more personalized, relevant ways. It can reduce customer acquisition costs by up to 50 percent.2 And fully engaged customers are 26 percent3 more likely to continue with their banking relationship and 43 percent more likely to increase product adoption with their bank. These are compelling numbers and as banks negotiate disruptive markets and competitive pressures, they must focus on delivering the personalized experience and engagement that customers want.
Dynamic Engagement in Action
This necessitates a pivot away from static offer management and engagement activation strategies towards more dynamic, intelligent ones. Here’s what this should look like:
- Notifications & Alerts
Static – Batch messages that aim to inform customers about generic offers. These are impersonal, have delayed outreach, and do not see a lot of customer engagement or response.
Dynamic – Hyper-personalized, timely information nuggets that drive immediate action and have higher conversion rates. For example, the First Bank of Nigeria4 leveraged personalized website tools and automated web push technology to showcase offers based on user behavior. This helped them improve both product visibility and user engagement.
- Onboarding Offers
Static – Fixed, one size fits all welcome kit or bonuses that ensure efficient onboarding but are not tailored to user’s interest.
Dynamic- Adaptive, session-based onboarding that increases retention and lifetime value. For example, banks can analyze customer behavior (through their queries, products searched on the website) during the sign-up process to gauge their interests and then craft a tailored welcome kit or bonus.
- Retention Campaigns
Static – Annual blanket offers that take low effort to initiate and manage but are ineffective and largely ignored.
Dynamic – Analyze customer behavior across the banking ecosystem to create targeted win backs. These ensure higher reactivation and better loyalty. For example, banks can offer targeted re-engagement gifts for customers who have not used a particular service for a long time.
- Loyalty Recognition
Static – Fixed, inflexible tiers, and annual reviews that are easy to segment and manage but ignore frequent engagement.
Dynamic – Real-time, behavior-based micro rewards. These ensure improved engagement and customer satisfaction. For example, banks can offer monthly app-based rewards for regular loan repayments.
- Personal Content and Advice
Static – Generic newsletters or app banners that require low investment but are irrelevant and ignored.
Dynamic – Tailored advice according to customer segment and need. For example, banks can use AI to analyze customer behavior, recognize relevant purchases at baby stores, or maternity hospitals and offer tips on managing finances after the birth of a child, or recommend investment options for the child.
- Embedded Touchpoints
Static – All interactions take place on native channels. This ensures a consistent experience, but limits reach and causes friction as customers must open the channel separately to engage.
Dynamic – Embedded widgets across social media channels and apps that ensure frictionless experience and increased engagement. For example, banks can carry out account upgrades via WhatsApp.
- AI Chatbots/Assistants
Static – Scripted and FAQ-based response management. This ensures staff efficiency but is available only during business hours and offers limited scope for personalization.
Dynamic- Generative AI-powered 24/7 natural communications. These solutions are scalable, help reduce costs, and result in high customer satisfaction. Bank of America’s, AI-powered mobile assistant Erica5 is a good example of dynamic banking assistants.
- Fraud & Security Alerts
Static – Periodic or manual security checks that offer basic compliance but delay responses.
Dynamic- Real-time, user-customized alerts that secure customer trust by limiting losses quickly. Banks can use AI for instant fraud detection and notifications via the app or channels like WhatsApp.
How SunTec Xelerate Powers Dynamic Offer Management
There is no doubt that the future of banking is personalized, relationship-based, and value driven. At this juncture, traditional banks must consider technology upgrades that allow them to implement dynamic, personalized offer management strategies. A robust, cloud-native, microservice-based offer management product like SunTec Xelerate can help banks bring this vision to life. SunTec Xelerate Offer Management can be deployed over legacy core banking systems without disturbing them. By separating the system of records from the system of engagement it offers bank the agility, scalability, and intelligence they need to power their dynamic offer management strategies.
Personalization is no longer a differentiator; it’s a fundamental driver of loyalty, profitability, and trust. Dynamic offer management enables banks to turn every customer touchpoint into an opportunity for engagement and value creation. By moving from static, campaign-based approaches to intelligent, adaptive engagement models, banks can build deeper emotional and financial relationships with customers.