Maximising customer lifetime value through climate solutions

Historically, banks were seen as trusted advisors. Customers knew their bank managers by name, and they received personalised advice on important financial milestones like mortgages and loans.

With the rise of the internet, convenience took over. Online banking and mobile apps transformed these personal interactions into quick, transactional services, making banking easier but less personal.

Today, with advancements in AI and data, banks have the opportunity to rebuild these connections through highly personalised digital experiences. By leveraging data insights, banks can understand their customers’ habits and preferences, and offer tailored recommendations for everything from budgeting and saving to lifestyle choices like sustainability. 

Neobanks and fintechs have already embraced this shift, offering highly personalised services like real-time spending insights and automatic savings round-ups. This level of customisation offers a more engaging banking experience than traditional banks typically provide. With 18% of customers willing to switch providers for more personalised support, banks need to rethink their approach or risk losing customers and the lifetime value they provide.

The climate opportunity 

One of the biggest opportunities for banks today is to engage customers through sustainability. As environmental concerns grow, particularly among younger generations, customers increasingly expect their banks to support sustainable lifestyle choices. Our research, conducted with the Behavioural Insights Team (BIT), reveals that 75% of banking customers want insights into the environmental impact of their spending, and 62% want help from their bank in reducing it. IIntegrating climate insights into mobile banking, helps banks not only meet customer expectations but also foster better, longer-term customer relationships. 

Personalising the journey

Each person’s path to sustainability is unique, shaped by individual circumstances and varying levels of carbon literacy. To engage customers effectively, banks need to meet customers where they are and offer personalised support. Offering generic advice or irrelevant recommendations—such as promoting retrofitting loans to non-homeowners—can lead to confusion and disengagement, potentially doing more harm than good. 

While many banks may not have access to the granular data needed to provide personalised recommendations, they can use customers’ transactional data to provide insights into the carbon footprint of their spending. By helping customers understand their impact and pinpointing where they generate the most carbon emissions, banks can offer tailored recommendations on how to reduce their carbon footprint and meet their sustainability goals. This also creates opportunities for banks to upsell or cross-sell relevant green products and services, driving further engagement and increasing the uptake of these offers.

Maximising customer lifetime value with Cogo

Cogo’s innovative solutions help banks seamlessly integrate sustainability into their customer engagement strategies. By providing real-time carbon insights, personalised recommendations, and leveraging behavioural science techniques, Cogo engages users to reduce their carbon footprint. The result? Increased customer satisfaction, stronger relationships, and greater opportunities for cross-selling green products and services. Our clients have seen a significant boost in user engagement, with app usage time averaging 4-6 minutes per session, exceeding industry averages of 30 seconds. Discover how partnering with Cogo can help your bank deliver long-term value, deepen customer loyalty, and drive sustainable growth.