Improve your predictive analytics for attrition or retention by 30% and more by being relevant.
Customer Satisfaction does not guarantee retention
The August issue of American Banker magazine had some amazing facts that we at Flowtracker Analytics Inc. want to share with you. It was reported that in Accenture’s most recent study conducted in the United States and Canada revealed customer satisfaction between a customer and their bank, is at an all time high of 85%. Even at this all-time high, customers leaving are increasing in numbers.
“Consumers no longer view switching banks as a hassle, which puts pressure on firms to not only attract new customers, but find ways to keep existing customers loyal,” said David Edmondson, senior managing director of Accenture’s North America Banking practice.
|Cheaper Product and more convenient locations. Worth switching for|| |
The reason for switching banks – Cheaper products, more convenient branch locations and switching is easier than ever.
WHAT THINGS CAN YOU DO TO RETAIN AND ATTRACT CUSTOMERS ?
Know when customers are renewing, switching or leaving
In account and customer based analysis of portfolio changes the missing link has always been the problem of account and product substitution. When an account renews, for example, it is important for the bank to be able to tell that the new account is not a sale and the lost account is not attrition (as account analysis would indicate). It is also important not to overlook the fact that this event has taken place,even though no new business has been generated (a customer centric view would see no change).
|Combine the analysis of behavior and products to understand the nature of your customers |
What we need is an analytic method that can identify where changes we see in customer and account business come from and are going to. It is meaningful to know that customers are renewing - or not. It is meaningful to be able to "see" product substitutions apart from sales and attrition. It is also helpful to know whether significant behaviors like borrowing to invest or liquidating investments to pay down debt are happening in our customer relationships.
This "funding" dimension is the key to differentiating between "real" new and lost business and internal changes in our customer relationships. Both are important to understanding both the performance of the products, locations and people and the quality, nature and behavior of our customer base.
Combining the analysis of behavior in the account/product dimension, customer dimension and business flow dimension simultaneously is what FlowTracker is all about. The result is a set of "cells" of behavior that are identified specifically for each individual account in your database.
|You need FlowTracker Analytics.|| |
The power of the FlowTracker innovation lies in its ability to subset observable changes in business volume into meaningful cells. You can identify all of the permutations and combinations of customer behavior that affect your portfolio, and reconcile completely and exactly to the portfolio at large.
This means that you can explicitly and reliably quantify the results of your marketing campaigns, sales activities, attrition/retention programs, product substitution and cannibalization, cross sales and fully understand the who, what when and where of customer events and behavior
If you want to run your bank or credit union efficiently and know what really drives customer retention and portfolio growth you need FlowTracker.