Retail Banking

Background

After the retail division of this bank broke down their customer base into high-value and low-value, they found that a higher proportion of their customers were considered low-value, and the bank was spending money to keep these customers.

Genroe solution

Genroe's Customer-Value Mapping analysis uncovered a group of customers that seemed to be low-value at first, but deeper analysis showed that while they had low transactional "everyday banking" , they had actually paid a significant portion of their mortgage in a short time frame. This analysis revealed that these customers had a high uncaptured value. Genroe created a product-bundling/cross-sell program that captured a larger "share of wallet" from these customers (which had previously gone to the bank's competitors), and increased their value to the bank by over 12%.

The Outcome

"Genroe's proven system has enabled us to evolve from a helicopter view that looks at customer averages, to specific customer groups based on real value. Over the past 18 months, we have revamped our customer retention program based on the Genroe findings and resulted in great success in higher retention rates and improvement in upsell and cross sell." CMO Global Bank