KNOW YOUR CUSTOMER – Are Regulators a Hidden Godsend?
Know Your Customer (KYC) exercises are a constant regulatory imperative across industry and geographies. This permits States and their Regulators to tackle security risks, fraud, and money laundering activities. As with the States, I believe KYC also offers immense value to businesses. A PwC article titled ‘Turning Necessity into Virtue’ also extols the benefits of reusing outputs from KYC data and analysis.
Know Your Customer Financial Practice
Financial institutions have been in the business of KYC for ages. These institutions spend time and effort proofing data, and go on to analyse customer transaction patterns which serves as input for product design. These institutions utilise customer information to make informed decisions on which products to offer to customers such as credit cards, and personal loans.
As rich as this practice is within the financial sector, it is not common place across industry and Telcos in particular know little of their customers.
Typically, customers visit a contact centre to do KYC. This rare face to face interaction allows for collection of customer information including demographic details, hobbies and other interests.
So, armed with richer customer knowledge, businesses can create more segments of fewer individuals and focus customer offerings, improving brand satisfaction.
Telcos – A Missed Opportunity?
Telcos fall into a category of businesses laden with a bounty of customer usage data. They could easily achieve high levels of customer loyalty if they overlay preference data, sourced through KYC, on usage data. Why then do Telcos not seize the opportunity presented through KYC directives? Might this be because they have long held a captive market and feel no need for a change? This is a mistake that needs to be rectified.