Improved Customer Intelligence Leads to Greater Customer Retention

The Challenge: 

Our client was paralyzed by conflicting retention reports, some showing significant account losses. Our client employed multiple anti-attrition programs, but they were used inconsistently against different measures -- with mixed results.

Our Solution: 
  • PNT  deployed our sophisticated Retention Dynamics MIS™ to provide a consistent bank-wide measure of true customer attrition
  • We recommended consolidation of tracking systems across multiple acquired “heritage” banks
  • We uncovered a major source of attrition in complex product line (over 20 different DDA accounts) leading to significant numbers of customers in the “wrong” checking account product.
  • We discovered major differences between the northern and southern parts of the bank: one was doing an adequate job of retention but not enough selling; the other, was selling well but not retaining the customers they were acquiring
  • PNT recommended comprehensive set of branch-based programs and staff incentives to rationalize wide ranging and conflicting retention efforts
The Results: 
  • Based on our analysis and recommendations, the bank was able to rationalize and streamline its retention programs and target controllable attrition in customer relationships
  • As a result, the bank reduced attrition by over 25 percent in key profitable customer segments
Key Results: 

The bank reduced attrition by over 25% in key profitable customer segments.