Keys to Improving Customer Retention

Main Story: Analytics Are Becoming Increasingly Important Tools in Banks' Customer Retention Strategies

Analytics will play an increasing role in banks' retention strategies going forward. According to a report by TowerGroup senior analyst Rodney Nelsestuen, if banks also remain mindful of the following key enablers, they should see a marked increase in new customers and expanded relationships with existing ones. If done correctly, the Needham, Mass.-based consultancy says, each technique builds on the others in a linear fashion, ultimately leading to improved customer loyalty.

• Customer engagement -- a mutual connection between the customers and the financial institution during interactions.,

• Customer experience -- the customers' view of all interactions with the financial institution -- including product, delivery channel, people, process and technology -- across the entire relationship.,

• Customer satisfaction -- the degree to which the customers feel the institution is meeting their needs, within their range of expectations.