Understanding Attrition and How to Lower Its Impact on Growth
The pandemic spurred new growth for most financial services organizations in the past year. Other analysts predict that growth will continue to increase well into 2022. However, for most of Marquis’ organizations, churn is also on the rise. Engagement (or lack of it) indicates churn, so it’s vital to understand who is churning and why.
To help mitigate churn you want to address specific needs and know when to intervene for households that may churn due to inactivity. Mitigating churn is as important as monitoring churn.
Analyzed from reviewing the data from more than 2 million households representing more than 6 million accounts with balances totaling more than $44 billion, a “typical” financial institution was modeled to better understand churn and its impact on growth.