Customer Retention Dynamics

As competition for customers intensifies acquisition costs rise. Therefore retaining the loyalty of your customers becomes ever more important. But how do you even begin to measure customer retention? Many businesses make the mistake of examining a single dimension. For instance, banks will tend to look at # of checking accounts opened versus # closed. But this is highly misleading. PNT’s unique Customer Retention Dynamics™ starts with clear definitions:

• Who is a customer? – A surprisingly hard question for many firms to answer from a data perspective. Who is a loyal customer?
• Which accounts are open and active from a marketing perspective (especially after removing data “noise” from system conversions and other sources)?
• How is the customer relationship changing across time, segments, divisions, geography and other dimensions?
   

Our experience has shown that actual customer attrition is often much lower than thought but may be worse in key, profitable segments. Further, retained customers may be reducing their balances with you over time – a far more serious problem. After completing a thorough analysis we work with your team to execute fact-based, measurable programs targeted at your specific retention challenges. Get our Attrition Study whitepaper here…