Citation
(2002), "Retained profit", Work Study, Vol. 51 No. 1. https://doi.org/10.1108/ws.2002.07951aad.004
Publisher
:Emerald Group Publishing Limited
Copyright © 2002, MCB UP Limited
Retained profit
Retained profit
Teradata, a division of NCR Corporation and Cohen Brown Management Group, have introduced Retention Manager, the first customer relationship management (CRM) solution leveraging the combination of technology with consulting and behavioural training services to address core deposit growth and retention.
"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 behaviourally to 'at risk' customers."
Although customers will close accounts in branches or call centres, the majority of defections are "invisible," as clients simply write cheques 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 behavioural changes in the organization, this "guilt-free attrition" will only intensify as the technological revolution progresses, stated Martin L. Cohen, managing director, chief executive officer and co-chairman of Cohen Brown Management Group. "Retention Manager combines the leading edge technology with CBMG customer insight and appropriate behavioural 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 being fundamental to profitability, as their deposits remain the cheapest source of funds for lending and maintaining regulator-required capital ratios."
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