Accelerating Product Design

How Retail Banks Can Transform Offering Adjustments

In the fast-paced world of retail banking, the design and adjustment of products and services often lag behind customer needs and market demands. Traditionally, this process is reactive, slow, and imperfectly targeted, resulting in suboptimal customer engagement and satisfaction.

The conventional approach begins with banks observing their competition and market signals, often looking into the rearview mirror. Based on these observations, a decision is made to react. At best, this involves running customer surveys, defining personas, and building a business case based on fragile assumptions. After approval, the implementation process begins, which can take several weeks or even months before the new product or feature reaches the customer.

However, this process raises several issues:

1. Delayed Response: The time lag between identifying a need and bringing a product to market means that banks are often late to address customer demands.
2. Imprecise Targeting: The products are marketed to customers who fit a limited number of personas, rather than being tailored to individual needs.
3. Mass Spamming: Marketing campaigns are broad and imprecise, leading to high rates of irrelevant messaging. For example, out of 100,000 messages sent, approximately 90,000 might be considered spam, resulting in poor conversion rates.

To address these challenges, retail banks need to adopt solutions that enable real-time, precise, and customer-centric product offerings. This is where morphiq steps in. morphiq offers a powerful solution that transforms the traditional product design and offering process.

The Solution: Real-Time, Precise, and Customer-Centric

morphiq’s solution allows banks to know what needs to be offered, when, and to whom with unprecedented accuracy. By leveraging advanced data analytics and real-time processing, morphiq ensures that products and features are introduced to the right customers at the right time.

Key benefits of adopting morphiq’s solution include:

1. Increased Confidence: With precise data and insights, business cases are more accurate, reducing the risk of launching unsuccessful products.
2. Rapid Time to Market: The time to market is reduced from weeks or months to almost instantaneous, allowing banks to stay ahead of customer needs and market trends.
3. Higher Success Rates: Targeted and relevant offerings lead to significantly higher conversion rates compared to traditional methods.
4. Enhanced Customer Satisfaction: By delivering relevant and timely products, customer satisfaction and loyalty are greatly improved, resulting in a higher share of wallet.

A New Era of Product Design

This new approach marks a significant shift from sequential, reactive processes to continuous, real-time, and relevant decision-making. The era of frustration, approximations, and poor customer satisfaction is coming to an end.

Product design in retail banking is entering a new phase characterized by:

• Continuity vs. Sequentiality: Continuous adjustment and improvement of products rather than periodic, large-scale changes.
• Real-Time Relevance: Immediate response to customer needs based on real-time data.
• Successful Decisions: Higher accuracy in decision-making leads to better outcomes for both banks and customers.

By embracing solutions like morphiq, retail banks can transform their product design and offering processes, ensuring they remain competitive and customer-focused in an increasingly dynamic market. This transformation not only benefits the banks in terms of increased efficiency and profitability but also significantly enhances the overall customer experience, leading to greater customer loyalty and satisfaction.