Thriving in the Digital Consent Era: Key Considerations for BFSI
By : Sanjay Prasad
VP - BFSI Sales
In the ever-evolving landscape of the Banking, Financial Services, and Insurance (BFSI) industry, an enormous shift is underway. To protect consumers from unsolicited commercial messages sent via SMS or voice calls, the Telecom Regulatory Authority of India (TRAI) has issued a directive that calls for service providers to deploy a Digital Consent Acquisition (DCA) facility. The goal is to create a unified platform for telecom subscribers to register their consent digitally for receiving promotional messages from entities like BFSI companies.
As the DCA regulations become mandatory, it’s clear that the BFSI and other industries are undergoing significant changes in their customer acquisition and upsell/cross-sell approaches.
The shift towards DCA reflects the broader trend of digital transformation in the business world, driven by advancements in technology and the changing expectations of consumers. It’s crucial for businesses to adapt to these changes to remain compliant and competitive. This means reworking their promotional strategies for acquiring new customers and expanding existing relationships with them.
Addressing this challenge will require businesses to adopt innovative and customer-centric approaches. Here are some key considerations:
Compliance: Ensuring that your organization complies with the new digital consent acquisition regulations is paramount. This may involve updating your processes, technology, and legal frameworks to meet the requirements while safeguarding customer data and privacy.
Customer-Centricity: Focusing on the needs and preferences of customers is essential. Providing a seamless and convenient digital experience for customers to give their consent and manage their preferences is crucial.
Data Management: Efficiently managing and utilizing customer data is central to personalized and contextual marketing efforts. Implement data analytics and customer segmentation strategies to tailor your outreach programs effectively.
Communication: Communication is key. Clearly inform customers about the changes, the benefits of providing consent, and how their data will be used. Transparency and trust-building are vital.
Value Proposition: Ensure that your upsell and cross-sell efforts are not solely focused on your organization’s interests but also on delivering value to the customer. Demonstrating how customers will benefit from additional products or services can be a win-win.
Technology Adoption: Invest in technology that facilitates the digital consent acquisition process and enables efficient data management. Automation and AI can help in personalizing outreach efforts.
Monitoring and Adaptation: Continuously monitor the performance of your customer acquisition and upsell/cross-sell programs. Be ready to adapt and refine your strategies based on customer feedback and changing regulations.
Invest in technology that facilitates the digital consent acquisition process and enables efficient data management. Automation and AI can help in personalizing outreach efforts.
In conclusion, as technological innovation and new consumer protection acts pave the way for digital transformation in the business world, adaptation becomes imperative like never before. Regulations like DCA demand more than compliance from entities of BFSI and other domains. They necessitate a holistic approach, such as embracing customer-centricity, managing data efficiently, communicating effectively, demonstrating value while continuously monitoring performance, and harnessing automation and AI. Such a magnitude of transformation becomes the cornerstone of fostering lasting relationships with customers in the digital age.