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The creation and implementation of f inancial institution customer retention strategies,

including bank customer retention strategies is one of the core strengths of the Genroe

organisation.

There are a range of strategies that can be implemented and we tend to summarise thembased on a customer's position in the customer lifecycle.

The lifecycle is shown below along with the value that different types of customers

contribute to the business at different parts of the cycle.

New

The single largest group of customer retention strategies that can be implemented in the

New section of the customer lifecycle is customer onboarding . Customer onboarding is the

process of bedding a customer into your organisation and includes ensuring that their

personal data is correct, that they understand the products they have purchased and how

to quickly contact the organisation.

We have proved time and again that cu stomers that are properly onboarded will stay with

the company longer and spend more money than other customers.

Other areas of New customer management include:

y Data integrity management

y Cross-sell leads management

y Product benefit education

y Product activation

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y Payment automation optimisation

For information on how Genroe can assist you in this critical phase of the customer

lifecycle see ourCustomer Retention Services.

Existing

The best bank customer retention stategy for existing customers is to classify each type of

customer (silent attr ition, ideal and unhappy) and create appropriate initiatives to change

their behaviour.

For instance customers in silent attrition are those that have reduced or stopped using a

product but where the account is still open. Examples for instance are credit card

accounts with little or no spending. For these customers you must determine why they are

no longer using your product (are you are their "back of wallet" card) and create initiatives

to change their behaviour.

Examples of Existing customer management programs include

y Product design evolution

y Payment automation optimisation

y Active customer complaints management

y Cross-sell leads management

y

Product activation

y Usage stimulation

y Preapproved products

y IVR Messaging Offers

y Leveraging sponsorships

y Leveraging affinity marketing

y High value relationship programs

y Low value relationship programs

y Local area marketing

y 3rd Party and Sales consultant commis sions

y Driving customers to highest ROI channel mix

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y Product bundling

y Product Upsell

y Silent attrition

y Collections process

y Move and Follow

y Differentiated levels of service

y Optimising product mix

For information on how Genroe can assist you in this critical ph ase of the customer

lifecycle see ourCustomer Retention Services.

Exiting

Customers that are Exiting are those customers that have started the process of moving

their business to another company or are in the process of considering that move. The

first step in creating bank customer retention strategies for Exiting customers is to identify

which customers are in each camp.

For customers in the process of moving their business yo u will need to understand the

product drop cycle, i.e. the order in which customers drop your products before leaving.

With this information you can create effective customer retention strategies to target those

customers.One of the key programs that can be implemented in this phase is Save Teams.

Exited

Generically, strategies that are aimed at recapturing customers that have left the

organisation are called Winback strategies. This is the most expensive and lowest ROI

place to try to implement your bank customer retention strategies. Mentally customers

have already moved to another organisation and it takes a large inducement to bring them

back.

If you do choose execute Customer Winback strategies then you will need to carefullymanage the level of incentive that your staff can offer to customers. For instance you will

need rules to tailor the incentive level to each specific customer in order to ensure that the

level of inducement is not larger than the future business generated by that customer.