Alkami Technology, Inc. has recently developed and launched an innovative Engagement AI Model as part of its AI Predictive Modeling solution. This cutting-edge model combines artificial intelligence (AI), machine learning (ML), and Alkami’s proprietary Key Lifestyle Indicators® (KLIs) to identify account holders who exhibit behaviors most likely to lead to retention and account growth. This groundbreaking development is set to revolutionize the financial services industry by empowering institutions with the tools to significantly increase customer retention and drive account growth.
The components of the Engagement AI model
Alkami’s Engagement AI Model incorporates AI, ML, and KLIs to create a robust predictive framework. By harnessing advancements in AI and ML, the model can accurately identify and analyse user behaviours that correlate with customer loyalty and growth. KLIs, Alkami’s proprietary data points, provide valuable insights into customer preferences, habits, and financial behaviours, further enhancing the model’s predictive capabilities.
The importance of identifying at-risk account holders
One of the key features of the Engagement AI Model is its ability to identify account holders at a high risk of leaving. Financial institutions can use an attrition model to detect patterns and indicators that suggest an account holder may be inclined to close their account. By identifying these individuals early on, institutions can develop targeted win-back strategies and take proactive measures to strengthen the relationship, ultimately reducing customer churn.
The risk factors for attrition
Alkami’s internal research reveals that account holders classified as high-risk for attrition are, on average, 15 times more likely to leave compared to highly engaged account holders. This alarming risk factor underscores the importance of identifying and addressing potential churn before it occurs. By focusing on the factors that contribute to attrition, financial institutions can implement tailored interventions to mitigate the risk and retain valuable customers.
The focus on retaining and growing engaged account holders
Unlike traditional attrition models, Alkami’s Engagement AI Model flips the script and focuses on retaining and growing engaged account holders. By shifting the focus towards fostering deeper engagement, financial institutions can tap into the potential of their existing customer base and maximize the value of these relationships. This innovative approach helps institutions cultivate customer loyalty, enhancing long-term profitability.
Assessing account holder behaviors
Alkami’s Engagement AI Model assesses the behaviours of a financial institution’s entire universe of account holders on a daily basis. By analyzing transactional data, customer interactions, and other pertinent factors, the model identifies individuals who exhibit behaviours indicative of deeper engagement. This granular level of analysis enables institutions to surface highly relevant campaigns, optimize resources, and engage with account holders who are more likely to take action, thereby improving conversion rates and maximizing marketing ROI.
Empowering Financial Institutions for Relationship Growth
With the Engagement AI Model, financial institutions gain the power to grow and strengthen relationships with their most engaged account holders. By predicting customer behaviors that drive incremental engagement, institutions can tailor their offerings, communications, and services to better suit individual preferences. This level of personalization fosters a sense of trust and satisfaction, leading to increased customer loyalty, higher satisfaction rates, and, ultimately, greater advocacy.
Predicting behaviors for incremental engagement
Alkami’s solution integrates AI, ML, and KPIs to predict behaviors that drive incremental engagement. By leveraging data-driven insights, financial institutions can proactively anticipate customer needs, preferences, and behaviors. This predictive capability enables institutions to offer personalized recommendations, provide timely solutions, and create targeted campaigns aimed at nurturing engagement and stimulating account growth.
The launch of Alkami’s Engagement AI Model marks a significant development in the financial services industry. With its unique combination of AI, ML, and KLIs, this model empowers institutions to identify at-risk account holders, focus on nurturing engaged customers, and predict behaviors that drive incremental engagement. By leveraging the power of data and predictive analytics, financial institutions can increase customer retention and drive account growth, ultimately securing their position in the ever-evolving landscape of the industry.