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Loyalty Management: Financial Services

Customer loyalty in the banking sector can be measured by four dimensions: satisfaction, retention, migration, and enthusiasm. The first two are based on rational customer behaviors where tangible and measurable factors are considered to determine the loyalty of customers to a bank. If a customer is satisfied with a bank’s services, he will perform repeat transactions to show his loyalty to the bank (retention). Emotional loyalty affects decisions made by customers that are based on factors relating to transaction frequency, transaction volume, number of products utilized, and amount of funds invested in a bank. Spiritual loyalty is when customers voluntarily promote the bank, and even defend it when it gets negative feedback from others. Loyal customers are the ones who have the enthusiasm about the brands or products they use.

Behavioral Segmentation: Demographic profiling is important but they tend to be incomplete because they do not leverage knowledge, attitudes, interests and actions of the customer, which in turn determine, how customers respond to actual products/services or their attributes. With information like product usage, buying pattern, decision attributes and customer attitude, effective Behavioral Segments can be developed that divides the customer base into groups based on the way they respond to promotions, price changes, channels they use to communicate, etc.

Behavior Scorecards: Loyalty Square’s unique model development capability, provides incremental lift in sales or revenue. These scorecards can be used to identify customer with higher propensity to response, activation or renewal. Loyalty Square team has extensive capability in statistical techniques and machine learning algorithms.  

Account Level Profitability: Not all customers are equally profitable, nor do they all have the potential to become our most profitable customers. Loyalty Square has requisite expertise in developing Account Level Profitability analysis to identify customers with different level of profitability. This helps is implementing differentiated targeted strategies for customers at different profitability matrix.

Cross-sell Analytics: If you want to increase value of your customer relationships, drive product penetration, increase the revenue per customer and thereby profitability, Loyalty Square's solutions will provide all the technology and analytic services required to deliver smarter and more actionable marketing decisions, allowing you to execute cross-sell and up-sell programs.

Churn Management: Banks lose customers through voluntary or involuntary attrition. Losing a good customer can be due to lack of proper monitoring tools to monitor customer grievance, lack of employee motivation leading to deficient service, issues in fees and charges, etc. Loyalty Square helps analyze call center notes and emails from customers using text mining to identify dissatisfied customers apart from using performance data that helps predict attrition risk of various customers.

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