Customer Retention
The dramatic increase in competition among banking
and financial services firms around the world has placed new emphasis
on the value of customer retention. There is growing pressure on
these institutions to start focusing more on improving customer
retention strategies to gain value from their existing customer
base. Banking industry statistics indicate that recruiting new banking
customers is a greater cost to the bank than retaining existing
ones.
'Value Add' Customer Retention Strategy
Luminous financial reporting solution, InVision, enables the bank
to deliver customised financial reports to small business and personal
customers providing valuable insight into their income and expenses,
budget planning and daily and monthly cash flows.
This information enhances a customer's ability to improve their
personal and business financial management planning. This unique
service offering is very 'sticky', providing the bank with a highly
effective customer retention strategy.
Proactive Customer Retention Strategy
By implementing InVision, banks are privy to powerful information
allowing for a more proactive customer retention strategy to be
developed. For example, when a franchisee refurbishment is due,
bank personnel can access information in advance detailing financial
performance of the franchise, assess the business against the bank's
credit criteria and should the franchise meet the criteria then
the bank can contact the franchisee and proactively offer them a
loan ahead of a competitor.
Banks can also obtain reports detailing insurance spend of the
customer, allowing a consultant to contact the customer equipped
with the relevant knowledge to propose appropriate insurance products.
The level of insight the system generates enables the bank to offer
exceptional service to its existing customer base, greatly assisting
the bank in retaining these customers.
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