Customer Data Management: Learn 5 things from Amazon


Although banks collect data on their customers' risk-taking and investment priorities, they do not systematically evaluate them. Consequently, they lose potential for new sales approaches. That's what the consultant Nielsen and Partner from Hamburg say.

The Hanseatics see Amazon as an example of successful customer data management. The online retailer knew "like no other from customer data, purchase information and preferences to derive needs". Amazon moves to legally perfect territory.

"Legally sound" - that seems to be the sticking point for banks. If one believes Nielsen and Partner, banks focus too much on government-mandated protocol duties and regulatory requirements. The Hamburg advise, banks should look more "outside the box".

Amazon evaluates buying habits

Specifically: Amazon evaluates buying habits in detail and compares customer profiles. On the basis of this data, the dealer offers customers products that they did not know yet, but which should be of interest to them. Likewise, banks can monitor value and risk developments in private investor accounts, according to Nielsen and Partners. To do this, they should set up alerts that tell bank advisers when to act. The aim is to offer suitable products at the right moment.