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A large Southeastern US regional bank that had grown to over 1,000 branches through acquisitions and mergers suffered high rates of customer attrition. Internal product sales reports showed annual runoff of approximately 20 percent among checking accounts. The bank wished to understand the causes of the customer defections, and implement long term measurement tools and programs to fix the problem initially and continue to monitor it proactively.
Using proprietary MetroMatch customer matching software, PNT pulled together customer records across multiple legacy banking platforms to develop the first clear picture of customer account holdings over a 24-month period. Next, PNT’s RightAttrit attrition model was used to develop a comprehensive picture of the bank’s “retention dynamics.” The analysis revealed:
PNT recommended a series of programs to move customers to the right accounts and monitor their relationships over time, reducing balance runoff, attrition and costs.
The bank avoided costly customer service initiatives that proved to be unrelated to customer attrition. Accurate measures of customer loyalty and attrition were instituted on an ongoing basis, including individually managed portfolios of high value customers. The number of checking account products was reduced to reflect customer needs, leading to fewer customers in the wrong accounts, a major source of defection.