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SEDONA Corp. CRM
Managing customer attrition has never been more important to community banks. Furthermore, community banks are being challenged to drive higher retention and greater revenues with fewer dollars and less resources. Technology can be used to improve customer retention in a way that also increases revenue. However, for community banks, such technology has been out of reach because it has not been designed for financial services, is prohibitively expense, requires bank staff to develop a sophisticated knowledge of marketing analytics, and demands too much time from expert staff for system configuration.
To help community banks meet these challenges, SEDONA Corp. has enhanced its financial services customer relationship management solution, SEDONA CRM, with new retention risk analytics to make it even easier for community banks to manage customer retention programs. Released in September 2008, SEDONA CRM v6 contains new retention analytics which automatically identify bank customers with a high likelihood of churn. Coupling retention risk scores with SEDONA’s unique Customer Value Index, customer profitability, and aggregated portfolio values empowers community banks to focus retention efforts on the right segments of their customers to enhance revenues and optimize customer retention while minimizing costs.
SEDONA CRM retention analytics addresses the most common problems community banks face when dealing with customer attrition:
- Customers often leave the bank with no warning and for no apparent reason.
- Lost customers in many cases mean lost profit.
- Traditional reporting tools don’t help much.
- Non-targeted retention campaigns are costly and often not very effective.
- Failure to understand root causes of churn means problems will keep repeating.
Using machine learning to identify patterns in historical data that precede a customer leaving the bank, SEDONA retention analytics builds predictive models from the learned patterns. Models can then be run against current customers to find those most at risk of leaving. Retention campaigns can then be focused on only at-risk customers.
SEDONA CRM with built in retention analytics is unique because it:
- Targets financial services exclusively.
- Creates a common definition for identifying customer churn based on the churn behaviors of the bank’s own attrited customer base (rather than relying on unsuitable data from much larger banks or other industries and products).
- Allows the bank to target appropriate offers to potential churners using additional information like current products owned and channel usage.
- Allows the bank to focus retention efforts on the most valuable customers thus reducing marketing costs and improving operational efficiencies.
Managing customer churn does not have to be expensive, time consuming or difficult for community banks. SEDONA CRM v6 contains everything a bank needs to thrive by helping the entire bank effectively identify, acquire, foster, and retain loyal, profitable customers.
SEDONA Corp.
www.sedonacorp.com