Customer Focus

Customer focus helps a leading banking group to grow

About This Project

Overview & Challenge

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.

Altair’s Solution

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:

  • Network Strategic Segmentation: as a previous step to optimizing the bank’s footprint, the analysis is very helpful in understanding—

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.

 

  • Universal Banker Suite: Altair Universal Banker Suite Concept is based on the development and implementation of 6 modules with key questions in mind:

– 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?

 

  • Customer Engagement: this measurement is a powerful tool to improve the commercial management of the portfolio, since engaged customers generate far more revenue than non-engaged. Portfolio segmentation based on engagement and profitability in order to:

– 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

Outcome

Acting on Altair’s recommendations, the client implemented a number of customer-focused programs that improved overall company performance.

Country

USA

Date
Category
Analytics, Banking and Financial Services
Tags
Customer Engagement, Network Strategic Segmentation, Universal Banker Suite

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