Case Study: Reducing Attrition and Churn While Increasing Profits

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Background:

We helped a $1B commercial bank identify that 3% of their most profitable households accounted for 25% of total profit but were at high risk as they only used only a single service. The bank wanted to strengthen their relationship and improve retention with these households by marketing additional deposit and loan products to them.

Objective:

To deepen existing high value client relationships and increase retention levels.

Action:

Based on historical usage, 888 households were targeted and segmented into specific marketing campaigns. A series of targeted marketing content was mailed to them over a 3-month period.

Results:

In the 3-month test period, the targeted households opened over $1.8m in new deposit accounts and $7.7M in new loans generating $115,000 in total net profit. Most importantly, the onboarding program generated and moved 30% of single service households to multi-service households, thereby reducing the risk of attrition.