Steve was reading the newspaper and having his morning coffee. It was 20th November. He realized that after three months on the same day, he will be celebrating his 10th wedding anniversary. He remembered that he had promised to take his wife, Lisa, on an adventure trip to South Asia, to celebrate their 10th wedding anniversary.
He thought for a moment and said to himself “Better not to remind her, not sure if I can pull it off”.
Later that evening, he rushed home and said “Dear Lisa, we are going on adventure trip to South Asia to celebrate our 10th wedding anniversary”.
What happened in the 8-10 hours that Steve changed his decision?
Steve received an email from his bank stating that he could enjoy interest-free credit on purchases on his credit card for next six months and enjoy his wedding anniversary. Bank had also increased the line of credit for three months.
Steve thought he could avail this offer and pay it off when he gets his bonus in March. He’s been doing well at work and was expecting a nice bonus. But he wondered whether the offer being made in a timely manner was just a coincidence or something that the bank carefully orchestrated! Steve brought this up and wanted to know if it was possible that this was not a coincidence. I said “This is not coincidence but most likely based on the banks assessment of customer life-time value using the data generated by various banking relationships with customer. They also computed the risk score for their customers. These two numbers collectively portray the customers’ potential value and riskiness. They combined this with life events (such as a birthdays/ wedding anniversaries to make timely offers”.
“I can understand that bank maintains records such as date of birth, anniversaries etc but how do they know that I am expecting a good bonus?” Steve interrupted.
I smiled and explained “It is very easy, if the customers has salary account with the bank or if same bank is the primary bank for the customer. Banks are able to deploy customer decision hubs that bring all the customer’s data into one place, and are able to proactively trigger marketing activities leveraging a 360-degree view of the customer’s financial and life events.”
Steve chuckled and said “I am glad even the bank thinks I will get a good bonus, better remind the boss.”