Retention of customers through recession
Categories: Customer Engagement
Tags: Tesco Bank
"If your budget’s been slashed because of the economic downturn. And you’re being told to, make the pound work harder for you. To me, that’s round about the retention. But what drives retention is understanding some of the customers and looking at some of the triggers of what drives retention. If I can build a model on a customer marketing database, that I can measure the propensity of someone to lapse or not to be on that database or the propensity of someone not to become a customer or to move on, if I can start to know that before it actually happens, that’s a very powerful piece of information I can give to any marketing colleague to say, “We need to talk to these people, because I think they’re going to move on in the next month, the next six months” whatever timeframe I give. That’s very powerful. Retaining that customer, as I said, a factor of maybe one to ten in terms of cost compared to acquiring, so you need 10 new people to acquire for that one person going, becomes very, very powerful. And that can be driven very easily from a marketing database."