How FX businesses can boost customer loyalty and profitability by using data intelligently

Digital transformation in the FX industry has changed how customers use FX services and execute trades. FX firms are moving their services online so their customers can access them on a self-service basis. This is efficient and convenient. But having less direct contact with your customers can have a downside – it can leave you with a knowledge gap.

Talking to customers and seeing their pricing responses was a good source of information that you could use to make business decisions. The insights you gleaned from your customers could help you stay competitive and grow your business. Now that you’re seeing less of them, you need new sources of insights and knowledge.

Fortunately, digitalization makes it easy to capture data. If you know how to use it, this data can help you analyze your customers, predict what they’ll do in the future, and understand your profitability. The consistency and reliability of digital data, combined with its ability to capture a much broader set of data points, make it an extremely effective tool for boosting your customer loyalty and profits.

To take full advantage of data analytics, you need a focused and deliberate approach. Your data and metrics must:

• Align to your marketing strategies.
• Be focused on your key objectives.
• Support in-depth analytics and allow you to measure success.

In FX, that means aggregating data points across pre- and post-trade activities to ensure your data supports your strategy. For example, suppose you want to improve your RFQ hit ratios. You need to understand RFQ trends in relation to a range of factors such as spreads, currency, product, execution channel, and customer segment.

Often, your FX platforms are already gathering the information you need. The challenge is how to consolidate, translate, and visualize it. Ready access to insightful analytics can help your people build data-driven decisions into their daily processes. And data-driven decisions help ensure your products and services are tuned to capture customer business and improve your bottom line.