How to provide personalized recommendations even when no explicit customer feedback is available
Defining the right product for your customer
Goal
The challenge of providing personalized recommendations to the customer exists in many industries. Especially in banking and finance, it is crucial to know the customer and to anticipate his needs. Targeted, tailor-made recommendations increase sales with existing customers, strengthen customer satisfaction with the financial services provider and brand loyalty, thus reducing the risk of customer churn.
Insight & Action
In the banking sector, customer ratings and therewith an explicit feedback of the products they contracted are usually not available. With the Recommendation Systems (RS) and its underlying principle Knowledge Lab analyzes past transactions and derives the necessary information from them to deliver the client advisor with coherent future investment strategies.
Results
Our approach places products and customers onto a so called “latent space” where they are comparable. Close proximity of product and customer indicate that the former should be recommended to the latter. This approach allows the client advisor not only to provide the customer with a high quality personalized recommendations but furthermore with compelling arguments on the reasons why.
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