Client Problem:
Our client was a large U.S. bank whose balance sheet growth had stalled. A major issue it faced was that its existing customer retention programs were of limited effectiveness. They needed assistance in stemming customer attrition and developing an internal retention competency.
Project Objectives:
Our goal was to find the root cause of customer attrition and develop a new retention program that would stem attrition and bring it down to industry standard levels.
Approach:
We began by conducting granular analysis and modeling that helped us establish a de-averaged view of attrition issues and retention efforts. We were able to isolate the effects of specific concurrent retention initiatives and find the points of leverage that were most effective in reducing attrition. We looked for the initiatives that tended to deepen client relationships rather than those that were destroying value.
We found that some programs that seemed positive in idea actually had a harmful effect on retention in practice. We worked with the client to wind down underperforming initiatives and to develop new initiatives that would provide the greatest leverage to future efforts.
Results:
Soon after implementation, our client saw appreciable balance sheet growth. Overall we were able to deliver a 260% improvement in the client’s retention efforts. We also helped to redefine the retention efforts of the company and helped develop an internal capacity for the client to make beneficial retention initiative decisions in the future.