"Financial institutions have proven their abilities at bringing core deposits in the front door. However, the net results are often disappointing when customers leave as abruptly as they came," commented Jim Donovan, vice president of global financial services marketing, Teradata division. "Retention Manager builds the next dimension of CRM to 'close the back door' by identifying, understanding and effectively responding behaviorally to 'at risk' customers."
Although customers will close accounts in branches or call centers, the majority of defections are "invisible," as clients simply write checks or make electronic transfers that are not immediately visible to the bank. As a result, critical and timely actions cannot be taken to retain customers and their deposits.
"Without making the cultural and behavioral changes in the organization, this 'guilt-free attrition' will only intensify as the technological revolution progresses," stated Martin L. Cohen, M.D., chief executive officer and co-chairman of Cohen Brown Management Group. "Retention Manager combines the leading edge technology with CBMG customer insight and appropriate behavioral response to give bankers the opportunity to effectively intervene at the point of need, essentially the precise point of opportunity or risk for the institution. The result is that the bankers will have the capability to protect the value of the existing customer base and acknowledge these relationships as fundamental to profitability, as their deposits remain the cheapest source of funds for lending and maintaining regulator-required capital ratios."
Teradata and Cohen Brown successfully used the technology and consulting services currently employed by Retention Manager to assist one of Australia's leading financial institutions to achieve its growth objective. Using these solutions, the bank discovered that 20 percent of total leads sent to sales channels are event-based while 80 percent are marketing campaign-focused. The event-based leads generate an unexpected 80 percent of the total revenues resulting from outbound calling efforts by sales staff.
Within the initial phase of operation, April 1999 to November 2000, the bank generated approximately A$400 million in additional revenue. Today, the bank deploys the technology in its business leads program and, in the first six months of its 2001 fiscal year, generated over 570,000 new leads, resulting in A$4.4 billion of new loans.
How the Retention Manager Works
As customer account activity is routinely processed nightly, Retention Manager examines each customer's banking behavior to detect and identify the clues of potential core deposit outflows. Retention Manager instantaneously "discovers" and collects the information in a usable report and gets it in the hands of the business manager, private banker, call center or the local branch manager the next morning. With this timely information, bankers can proactively contact "at risk" customers within 24 hours from the identification of the defection clues and have an informed discussion to head off the potential deposit loss and to explore ways to expand the existing relationship. The software has the capability to allow the bank to respect the wishes of a customer who decides they do not want to be contacted regarding marketing or other offers.
The Agreement
Working jointly, Teradata, a division of NCR Corporation, and Cohen Brown Management Group, the number one culture change specialist for the financial services industry, have signed an agreement to bring combined offers of data warehousing software and professional sales consulting and training services to the financial services market. Under the terms of the agreement, CBMG will integrate its exclusive training and organizational development tools with Teradata's financial services solutions, commencing with modules of the CRM software suite.
About Cohen Brown Management Group (CBMG)
The Cohen Brown Management Group (CBMG) is an internationally recognized leader in cultural and behavioral change for the financial services industry. Its clients are among the industry's largest and most respected financial institutions worldwide, covering all segments of the industry, including retail, commercial, trust, investments, insurance, mortgage, private banking and support areas. For more than 20 years, Cohen Brown has earned the acclaim of its clients for consulting services and courseware that build upon existing organizational cultures and for producing dramatic bottom-line results that surpass their highest sales and service expectations. Go to http://www.cbmg.com .
About Teradata Division
Teradata, a division of NCR Corporation, offers powerful analytical solutions that help businesses drive growth. Teradata solutions include the Teradata database, and analytical applications for customer relationship management, operations and financial management, business performance management and e-business. To learn more about Teradata Division and its solutions, go to http://www.Teradata.com .
About NCR Corporation
NCR Corporation (NYSE: NCR) is a leader in providing Relationship Technology(TM) solutions to customers worldwide. NCR's Relationship Technology solutions include the Teradata(R) database and analytical applications such as customer relationship management (CRM) and demand chain management, store automation systems and automated teller machines (ATMs). The company's business solutions are built on the foundation of its long- established industry knowledge and consulting expertise, value-adding software, global customer support services, a complete line of consumable and media products, and leading edge hardware technology. NCR employs 33,300 in more than 100 countries, and is a component stock of the Standard & Poor's 500 Index. More information about NCR and its solutions may be found at www.ncr.com .
NCR and Teradata are trademarks or registered trademarks of NCR Corporation in the United States and other countries.
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CONTACT: Dan Conway, Teradata Division of NCR Corporation,
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