Today’s consumers have been trained by the proliferation of intuitive, secure digital experiences in nearly all areas of life, from communication to entertainment and commerce, to have high expectations for a personalized digital experience when conducting any online transaction. Accelerated in 2020 by the pandemic, they are increasingly going online to conduct business that was once done in person. Financial transactions are no exception to this digital transformation. It is critical that banks and credit unions equip themselves with the tools they’ll need to deliver the best possible customer experience in 2022 and keep pace with this rapidly changing technology in the future. Â
A Better Understanding of Customers Through IP Address and Geolocation Data
To deliver service that meets these high standards, it’s critical first to understand the customer — not just the demographics of who they are, but also what they need and when. Fortunately, these answers are within reach through the strategic use of IP addresses and geolocation data. An IP address is a unique string of numbers assigned to each device on an internet network. At its core, it is quite similar to a physical street address. It allows digital marketing to be delivered to a specific audience much in the same way a new credit card offer could be mailed to residents within a specified distance from the local branch of a bank or credit union. When combined with geolocation data that can pinpoint where a user is in the world when interacting with an app or website, it becomes possible to create innovative, targeted marketing campaigns and a seamless, safe user experience that will gain and keep new customers.
Obtaining accurate and up-to-date IP address and geolocation data is affordable and easily done through third-party services. There are several ways financial institutions can use the data to provide a better digital customer experience.
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1.Provide clients with targeted ads
One proven way for banks and credit unions to increase ROI on any marketing campaign is to serve personalized offers to the customer through geolocation. If a credit union is local to the Northeast, it can use location data to ensure that ads or promotional emails are only delivered to users within that geographic area. If a bank wants to send a credit card offer to a specific demographic, such as college students, it can use IP address data to find and advertise directly to devices being used at selected colleges or universities. Geolocation data can also be used to increase foot traffic to a physical branch, sending notifications to potential customers when they are nearby or directing them to the nearest ATM. IP address and geolocation data provide consumers the personalization they expect and provide financial institutions with valuable insights into customer behavior that they can use to get the most out of their marketing dollars.
2. Leverage location data to prepopulate sign-up forms
If a targeted ad or other marketing campaign is compelling enough to capture a prospective customer’s interest and they are ready to complete a lead form or sign up for an account or service, it’s imperative to make the conversion process quick and seamless. Banks and credit unions can use real-time data sets collected from APIs that constantly collect and crunch IP location data to prepopulate fields such as city, state, ZIP code, and country. The less information a user has to manually enter, the less chance they will grow frustrated and abandon the effort. By making the first interaction a positive one, financial institutions can lay the groundwork to build customer loyalty from the start of the relationship.Â
3. Keep customers’ financial information safe and secure
The cornerstone in building customer loyalty is trust that every transaction with their financial institution is secure. Through online portals and mobile banking apps, they expect to have access to their financial data whenever and wherever they want it, and they expect that data to be protected. IP address and geolocation data provide security measures for banks and credit unions, fighting fraud by flagging an attempted account log in from an IP address in Seattle if the data shows the customer lives and banks in Des Moines. IP address data can also be used to create secure web forms and limit login attempts, keeping financial data safe from unwanted visitors. Privacy detection APIs can also be used to filter out malicious traffic and flag masked IP users from compromising customer information.
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Harness the Digital Transformation Â
As digital transformation continues to pick up speed, consumers will hold their financial institutions to the same standards of service they experience in other sectors. Every bank and credit union should prioritize leveraging IP address and geolocation data to drive web personalization, create targeted marketing campaigns, and enhance security to meet and exceed customer expectations.
How are you using IP addresses and geolocation data to improve customer experience? Let us know on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window .