Customer Strategy Case Study

1. COPYRIGHT © 2012. ALL RIGHTS PROTECTED AND RESERVED.
Retail Bank Addresses
Customer Attrition to Achieve
Growth
Customer strategy case study

2. 2
The Challenge: Fighting to keep customers
Challenge:
A leading retail bank in South Africa realized
that although its customer acquisition
strategy was successful, it was unable to
achieve significant growth due to a large
customer attrition problem. Getting
customers was no problem, but keeping
them was a challenge. In order for the bank
to achieve its future growth goals, it was
imperative that focus be shifted to retaining
customers.
The bank needed a detailed understanding
and measurement of the size, scope, and
source of the attrition problem. Also, what
were the bank’s retention capabilities and
potential? It worked with Peppers & Rogers
Group to assess its current situation, as well
as create a plan for change.

3. 3
The Approach: Look to the customer lifecycle for retention potential
Approach:
As the first step, the Peppers & Rogers Group team investigated internal historical customer information
to identify the depth of the attrition problem, as well as the areas within the bank most affected by this
problem. This shed light on the extent of the problem within the organization and allows the bank to
prioritize focus on the most problematic areas first.
Numerous working sessions were also held with the different departments within the organization to
understand the possible reasons for attrition, to understand how attrition is currently managed, and to
obtain a full understanding on the current retention capabilities.
Based on this assessment, the team proposed a list of 15 initiatives for the bank to embark on as part of
an organization-wide retention program, which affects the entire journey a customer has with the bank
– from acquisition to win-back.
Using the insights gained, the team also suggested common definitions of measuring attrition for the
organization, standardized attrition reasons collection, as well as a common reporting method at an
organization level, i.e. per product lines, customer segment, etc. This allows the organization to
continuously track its success on the proposed retention initiatives and provides insights for where to
prioritize.
The team also supported the bank with the design and implementation of its new retention program,
revised attrition definitions and attrition reasons collection, and a customer win-back exercise for
already customers who have already left. The bank can leverage the momentum created during the
project to make progress on strategic targets.

4. 4
Insights & Outcomes: Implementation of an organization-wide retention program
Insights & Outcomes:
Given Peppers & Rogers Group’s recommendations, the
company has currently assigned a team responsible for the
retention Program and the implementation of proposed
initiatives. Different departments within the organization are
also actively aligning their future business goals and strategic
intentions to the findings.
The bank is set to fulfill its long-term growth options as it now
has the support to maintain longer relationships with its
customers.

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COPYRIGHT © 2012. ALL RIGHTS PROTECTED AND RESERVED.
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