Customer Perceived Value

In order to sustain growth and profitability, financial institutions must not only focus on acquiring new customers but also on retaining existing ones. Most banks today perform surveys indicating 95%+ customer satisfaction, yet the churn within their consumer DDA base ranges from 10-20%—which begs the question, if customers are satisfied, why are they leaving?

Our experience suggests that ‘being satisfied’ is not sufficient to drive customer loyalty and retention. A much stronger indicator is the measure of Customer Perceived Value (CPV), which asks customers “for the price you pay (in terms of time and money), do you receive good value in return (product, quality, etc.)?"

There are a number of key attributes that drive value for customers. Using our knowledge of these drivers and feedback from your customers, we can help you understand where to focus your efforts in order to maximize customer value. Our capabilities include:

• Customer Loyalty Diagnostic: Survey your customers and determine the attributes that drive their loyalty and how they score your organization on each attribute.
• Customer Loyalty Strategy: Develop a plan to improve overall retention and loyalty, identify specific initiatives necessary to execute the strategy.
• Critical Initiative Management: Develop action plans and metrics to measure the results of the initiatives and monitor their implementation.
• Results Monitoring:Report to management the results of the initiatives and the impact on retention and loyalty.

To learn more about our Customer Perceived Value solution, please click here.

We have advised many leading financial services organizations:

- Payment strategy development with 8 of the top 10 U.S. banks

- Retail banking strategy (pricing, distribution, and account retention)

- Strategy, research, and pricing analysis with some of the largest EFT networks and card associations

- Market research and strategy for the U.S. Treasury and the Federal Reserve Bank

- Market analysis and strategy development with leading payment processors

- Product development
with ATM manufacturers and payment providers

- Market research studies spanning consumers, merchants, and financial institutions

- Expert testimony in litigation