DDM - Financial Services

Growing Revenue by Aligning Customers With the Right Service Level Case Study

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Growing Revenue by Aligning Customers with the Right Service Level Bank Generates $700 Million in New Revenue case study Challenge: Determining the Right Service Level for Existing Customers Customer service is a critical part of lifecycle management for financial services firms. The experiences that a customer has with a bank may have a significant impact on his or her long-term satisfaction, which can affect the ability of the firm to retain the household and maximize lifetime value. It is critical that banks assign customers to the most appropriate service channel, as well as have a good understanding of the customers' financial services needs. Today, many banks place customers into various service levels based on internal data or demographic data, which may provide an incomplete or inaccurate view of the customer and is particularly limited in describing customers' growth potential and asset allocation. This limited view results in lost opportunities and over-servicing: ■ Lost opportunities: Some customers may have significant asset growth potential, yet they are assigned to mass market service channels. This could result in the household not getting a full view of all the relevant services the firm has available for them and reduced customer satisfaction which could, in turn, limit future relations with the bank. ■ Over-servicing: There may be customers with small amounts of wealth that are incorrectly assigned to a premium, high-touch service channel resulting in increased costs to the bank. At the same time, the products and services offered by the premium channel may not be appropriate for these customers, leading to customer alienation if they do not qualify for these premium offers. As a result of this limited view of the customer, clients may be under-serviced or over-serviced, and the bank's ability to determine and meet the needs of its clients is tested. IXI TM Network Member Financial Services Firm CHALLENGE A leading bank was having a difficult time determining the growth potential of existing customers; thus customers were not being assigned to the most appropriate service channels. SOLUTION The bank used WealthComplete to identify the growth potential of their existing customers and then used that knowledge to determine appropriate service strategies. RESULTS By using WealthComplete, the bank was able to: ■ Reverse negative revenue growth of -0.5% to 1.7% ■ Realign customers with the right service levels, resulting in over $700 million in new revenue

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