Heather Knight’s Post

Did you know? It can cost up to 7 times more to acquire a new bank customer than it does to keep current customers engaged. Not only is retaining more cost effective, it seriously impacts profitability too. Boosting retention by just 5% can increase profitability by 25% or more.   In our current ultra-competitive financial services landscape, many stakeholders are left wondering: is our bank using the right metrics for customer retention?   This article in The Financial Brand explores this issue and offers tips for gaining a more comprehensive view of customer loyalty and retention as it stands today.   Check it out: https://lnkd.in/gzhGSphN   #CustomerRetention #CLV #BankMarketing

What's the better metric: Share of wallet or customer lifetime value (CLV)? If you answered one vs. the other, you failed the test. The right answer is: Better metric for WHAT? A new article in The Financial Brand from Lynnley Browning asks which of the two metrics is better for customer retention, and I'm firmly in the camp that while both metrics are valuable, share of wallet is a must-have metric in today's environment. Lynnley cites a study that found that the "average" American had 5.3 bank accounts in 2019 (I bet Fifth Third bank LOVED that finding). While the # might be higher today, that statistic ignores the fact that many consumers--particularly those under the age 45--have 4 to 5 times as many financial relationships as the number of accounts they have. Personally, I've never been a fan of the CLV metric. Is it a backwards looking metric or a forward looking metric? If it's forward looking, then you have to make some big assumptions about how the customer's "lifetime" is. Then you have to make some big assumptions about how effective your relationship development efforts are going to be. Share of wallet isn't without it's shortcomings. The biggest shortcoming is that it typically measures dollars, and not activity. If I were a bank or credit union executive, what I'd really want to know about my customers/members is their share of "engagement." It's nice to have account balances, but who and what are my customers/members using to make payments, and who and what are they using to manage their financial lives? I did take note, by the way, that the article didn't bring up #NetPromoterScore as a metric for measuring customer retention. Good move, Lynnley! NPS is a totally useless metric. So sad to see so many execs put stock into that metric. Got a preference between share of wallet and CLV? Let me know. https://lnkd.in/eR4KP6Aq 💯 Jim Marous Bryan Clagett Mary Wisniewski Karen McDermott Joann Marsili, CFMP Alex Jimenez Willis Chang Derik Sutton Laurie McLachlan Patrick Reetz Dave Klavitter Lindsay Soergel Karen M. Kelly Lindsey Ogan Allan Switalski

🧠 💭 The importance of NPS for banks and fintechs can't be overstated - it's a competitive differentiator and means your customers trust you. And trust unlocks a lot of tangible benefits, from improved customer retention and acquisition to boosted revenue and ROI. Find out more ➡ https://hubs.la/Q02sdT3S0

Customer surveys and Net Promoter Scores both share the same weakness: What consumers say doesn’t necessarily match their actions. Here’s the latest thinking on how to know what your customers really think. Their behavior often speaks louder than words.

Did you know that 15% of recurring payments and 7.9% of credit card payments are regularly declined? 📈 Retrying payments can recover up to 32% of failed transactions, reducing involuntary churn, improving customer retention, and maximizing lifetime value. It’s important for merchants to understand the common root causes of payment failures and address involuntary churn through effective retry strategies, customizable retry limits, optimized retry timing, and so on. 🔧 Some top strategies to Implement: 🔀Segregate Soft and Hard Declines: Focus on addressable issues. 🔎Analyze Payment Data: Understand patterns and optimize retry logic. 🔁 Smart Retry Logic: Assess decline codes to determine the likelihood of a successful retry. Check out the blog to learn more ↙ https://lnkd.in/gPstbt2e #payments #subscription #paymentretry

Chasing CLV (Customer Lifetime Value) and SOW (Share of Wallet) has been an important part of the Financial Services industry. Here's the latest read on it. The article explores whether banks are using the right metrics for customer retention. Check it out here: https://lnkd.in/e7GuySCC

Transaction data is a powerful tool for understanding consumer behaviors and trends. Learn how it can transform your customer retention, sales, and credit risk strategies in Marqeta's latest #blog.

Churn, or customer attrition, is the rate at which customers stop doing business with a company over a specific period, indicating customer retention and areas for improvement. In today's competitive market, understanding customer behavior and reducing churn is crucial for business success. I recently completed a comprehensive churn analysis project, and I'm thrilled to share some insights and key takeaways from this endeavor. Insights: # Total Retained customers "5174". # Total Revenue "16.06$". # Count of Churned customers "1869". # Revenue lost by Churned customer "2.86 M". # Count of Customer churned by last month "380". # I found that "33.58%" of customers used electronic cheques, "22.89%" used mailed cheques, "21.93%" used bank transfers, and "21.60%" used credit cards. #Churn #ChurnedCustomer #PowerBI #DataAnalysis #DataAnalytics #DataScience #Geekster Geekster Krishna Madan

Excited to share this 2020 Trust Bank Dashboard Project⭐ This project analyzed customer churn data for Trust Bank and the analysis aimed to empower the bank by: - Predicting and understanding factors that contribute to customer churn: This allows the bank to proactively address potential issues before they lead to churn.  - Developing strategies to identify customers at risk of churning: Early identification allows the bank to tailor solutions and retain valuable customers.  - Recommending churn reduction and customer retention strategies: This provides concrete actions to improve customer loyalty. The dataset was thoroughly cleaned, analyzed and visualized using Microsoft Excel. KEY INSIGHTS INCLUDE: CUSTOMER AGE: Customers aged 28-37 tend to stay longer and have the highest record of longer stays with the bank, while those aged 38-47 churn more frequently. REGIONAL VARIATIONS: Amongst the branches of Trust Bank in France, Germany & Spain, the branch in France has a higher active customer base than both the branches in Germany & Spain combined. CUSTOMER SEGMENTATION: The bank has a larger male customer base. COMPLAINTS & SATISFACTION: Customers who churned had higher complaint volumes and lower satisfaction scores. The satisfaction score of those that complained and later churned was lower than the satisfaction scores of those who complained and eventually did not churn, indicating dissatisfaction with complaint resolution.   Strategic recommendations were developed to help the bank prevent customer churn based on these insights.  One of such strategic recommendations was that Trust Bank should prioritize effectively addressing customer complaints and ensuring high customer satisfaction, as unaddressed customer concerns can significantly impact customer churn, leading to these customers leaving the bank. This analysis leverages a strong foundation in knowledge and skills acquired during my learning journey at Vephla University.

87% of customers who feel valued claim they will remain with their bank. But with an industry retention rate of 75%, there’s room for improvement. 📈 🏦 But what should banks do to increase customer satisfaction and retention? 👉 Read our most recent blog post for more. https://lnkd.in/dsQd9zRj