Customer Attrition and Retention Analysis

Customer attrition is one of the most critical and least well understood phenomena in financial services companies. Many banks turn over as many customers as they acquire each year and the wide adoption of "free checking" has lowered the barriers making it easier for customers to defect. Here are some of the questions PNT can help you answer:

  • Which customers are leaving?
  • What causes them to go? Is it customer service issues or something else?
  • How much should we spend to prevent it? How much are we actually losing?

Also, see our white paper on customer attrition.

We need to understand which customers are at risk for leaving.

Predictive modeling creates accurate lists of customers “at risk.”

We need a tool for taking action and tracking performance against “at risk” customers.

Attrition Analysis pinpoints account losses versus customer losses.

We appear to be losing as many accounts as we’re opening. Is that true or an MIS artifact?

Retention Dynamics shows which relationships are staying, going, growing and shrinking.

Which types of relationships are we losing and why? We need to reduce attrition among customers we think will be affected by an upcoming policy or pricing change.

Proactive identification of and targeted communication to affected customers reduces turnover.