Retail Bank Addresses Customer Attrition to Achieve Growth


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Customer Strategy Case Study

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Retail Bank Addresses Customer Attrition to Achieve Growth

  1. 1. COPYRIGHT © 2012. ALL RIGHTS PROTECTED AND RESERVED. Retail Bank Addresses Customer Attrition to Achieve Growth Customer strategy case study
  2. 2. 2 The Challenge: Fighting to keep customers Challenge: A leading retail bank in South Africa realized that although its customer acquisition strategy was successful, it was unable to achieve significant growth due to a large customer attrition problem. Getting customers was no problem, but keeping them was a challenge. In order for the bank to achieve its future growth goals, it was imperative that focus be shifted to retaining customers. The bank needed a detailed understanding and measurement of the size, scope, and source of the attrition problem. Also, what were the bank’s retention capabilities and potential? It worked with Peppers & Rogers Group to assess its current situation, as well as create a plan for change.
  3. 3. 3 The Approach: Look to the customer lifecycle for retention potential Approach: As the first step, the Peppers & Rogers Group team investigated internal historical customer information to identify the depth of the attrition problem, as well as the areas within the bank most affected by this problem. This shed light on the extent of the problem within the organization and allows the bank to prioritize focus on the most problematic areas first. Numerous working sessions were also held with the different departments within the organization to understand the possible reasons for attrition, to understand how attrition is currently managed, and to obtain a full understanding on the current retention capabilities. Based on this assessment, the team proposed a list of 15 initiatives for the bank to embark on as part of an organization-wide retention program, which affects the entire journey a customer has with the bank – from acquisition to win-back. Using the insights gained, the team also suggested common definitions of measuring attrition for the organization, standardized attrition reasons collection, as well as a common reporting method at an organization level, i.e. per product lines, customer segment, etc. This allows the organization to continuously track its success on the proposed retention initiatives and provides insights for where to prioritize. The team also supported the bank with the design and implementation of its new retention program, revised attrition definitions and attrition reasons collection, and a customer win-back exercise for already customers who have already left. The bank can leverage the momentum created during the project to make progress on strategic targets.
  4. 4. 4 Insights & Outcomes: Implementation of an organization-wide retention program Insights & Outcomes: Given Peppers & Rogers Group’s recommendations, the company has currently assigned a team responsible for the retention Program and the implementation of proposed initiatives. Different departments within the organization are also actively aligning their future business goals and strategic intentions to the findings. The bank is set to fulfill its long-term growth options as it now has the support to maintain longer relationships with its customers.
  5. 5. Corporate Headquarters: 1111 Summer St Stamford, CT 06905 USA +1 (203) 989-2200 COPYRIGHT © 2012. ALL RIGHTS PROTECTED AND RESERVED. The information contained in this document, much of which is confidential to Peppers & Rogers Group, is for the sole use of the intended recipients. No part of this document may be reproduced in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of Peppers & Rogers Group.