Our client is a leading banking group with a high market share in Spain. The company had a respectable customer defection rate. Company managers believed that only inferior customers were defecting. Management’s goal was to determine customer retention and penetration opportunities. Altair helped our client design customer-focused programs that increased both customer retention and market share.
To enhance its value proposition and improve retention, Altair recommended that the bank initiate programs focused on the following three aspects that were highly data-driven:
– Capture potential: demographic, socio-economic, business activity and internal branch variables
– Development potential: client mix, active/passive mix, product mix; number of clients, number of operations; benchmark of optimal product basket potential
– Competitive pressure: competition index based on network, brand value and advertising of competitors
Branches without significant potential and with negative earnings might be considered for downsizing, while high potential branches with high profitability will be recommended for replication. In order to proceed with the segmentation, business know-how and multivariate statistical techniques are used to allocate branches in homogeneous groups.
– Customer Experience Strategy: How can the branch create value and differentiate?
– Value Proposition and Offerings: What is attractive and retains customers?
– Organization: Which profiles are needed and how should the staff be structured?
– Operating Model: What is necessary to achieve and maintain the value proposition in the long term?
– Objectives and incentives: How do we continuously improve performance?
– Branch Transformation: How should branches be designed taking into account customer needs, behaviors & usage?
– Identify value generation drivers (best practices, valuable sectors, products…)
– Model customer behavior patterns
– Define the right customer service model per segment
– Prioritize clients and portfolios
Acting on Altair’s recommendations, the client implemented a number of customer-focused programs that improved overall company performance.
September 01, 2014
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