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Case Study |
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Customer retention for a leading bank |
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Shubha N. Janardhan |
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Prof. S. Mohan Kumar |
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Overview: |
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One of the nation’s leading bank’s hired Haselfrë to help with a specific customer retention problem that is important to senior management of the country. On this issue, retaining the right customer segment for the emerging market of India is key. Creating the balance between retention and acquisition was a major concern for the bank.
Working with our client, Haselfrë has been able to successfully engage various stakeholders within the bank and segment the various customers to maintain that balance. |
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The Problem: |
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For years, the bank has been relying on its existing worldwide brand to attract customers. They were not actively participating in engaging the customers and attracting new ones. Due to the new senior management efforts and priority, the bank hired Haselfrë to select the right kinds of customers setting stage for growing and emerging market of India.
The bank had not segmented its customers and as a result was not sure where the revenue was coming from and what targets of customers its services were targeting. |
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Strategic Recommendation: |
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Haselfrë’s assignment was to engage the senior management (C Level) at the bank to understand how they could create the balance between retention and acquisition. Key elements of the program included: |
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Program Elements: |
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- Develop various segments of customers to understand what each segment brought to the table in terms of retention cost.
- Create financial simulations for creating a balance between acquisition cost and retention cost.
- Engage C level executives and discuss the pull strategy for the new customers.
- Work with the bank to engage in pilot projects for attracting the customer.
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Results: |
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Haselfrë’s efforts to help the bank understand the retention cost vs. the acquisition cost. The bank was able to understand segregate the customers were costing the bank too much without too much revenue potential. With Haselfrë’s help, the bank was also able to create a balanced portfolio of retentive customers and new customers. |
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About the Key Professionals:
Shubha N. Janardhan is the Chief Operating Officer of Haselfrë Solutions.
Prof. S. Mohan Kumar is a principal at the Haselfrë Office.
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