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The flip side of customer retention

Challenge: In an increasingly competitive business environment, combined with the high costs of acquiring new customers, the focus on customer retention is ever increasing.  Customer satisfaction and loyalty measures are adopted by many organizations as a pulse on customer mindset. However, exploring the flip side of why customers move away to competition is important in gaining a holistic understanding of customer mind set.

Solution: The Strategic Counsel conducted a quantitative survey among customers of a financial institution that had recently moved away as well as less active customers.  Structured Equation Modelling was recommended by The Strategic Counsel to determine factors driving attrition and the interrelationship between these factors that result in attrition.

Results:  The findings were used by the client, in conjunction with their ongoing customer satisfaction study, to focus efforts on improving key areas of opportunity.