|
Preserve At-Risk Checking
Accounts
ISSUE:
Changes in key channel usage patterns may indicate potential
checking account closures. Closure of checking in profitable
households is a significant issue in household retention. PRINCIPLE
TARGETS:
|
1. Core A's |
|
4. Deposit B's |
|
2. Real Estate A's |
|
5. Mixed B's |
|
3. Other A's |
|
6. Loan B's |
SELECT:
Checking households with changes in key channel usage
patterns.
 CONSIDERATIONS:
-
Monthly Transactional
Channel Use Patterns must be available for this tactical
approach to be utilized
-
In the absence of channel
activity data, use changes in address as indicator of
at-risk accounts
-
Branch managers should call
these at-risk checking households to identify any issues
that members may have
KEY
FINDING:
RFG’s Activity analysis shows that the more transactions on
the checking account, the higher the profit of the
relationship.
STATISTICS:
Direct Deposit households have higher retention of checking
than those without direct deposit. Bill pay household have a
higher retention of checking than non-bill pay households.
TACTIC:
Track changes in member behavior to identify at-risk
checking households (especially ‘Core A’ households). Look
for cancellations of direct deposit or reductions in checks
written, debit card usage, and on-line bill pay usage.
ACTION:
Call these households to make sure there are not any service
quality issues that may be resolved.
|
