Every day, too many credit card customers call their issuers to close their accounts because the rate is too high, the credit line is too low, the card was declined at a merchant, or some other adverse customer experience.

On the other hand, you know the cost of acquiring a new customer is roughly ten times higher than retaining an existing customer. In order to retain a customer, the issuer needs to offer an attractive value proposition: better product, better service, better rate, or another attractive offer.

What is the incremental value of retaining this customer? What is the opportunity cost of not retaining this customer? What is the trade-off between retaining this customer and losing his business?

Answers to these questions require an understanding of who is being retained and who is not, what they are being offered in terms of price/fees/rewards, and the costs of the campaign. It is also important to understand the balance and usage, payments being made, delinquencies, charge-offs and recoveries.

Our team has worked with national issuers in building retention solutions based on this very information. This work involves proficiency in building statistical targeting models and segmentation schemes, detailed cash flow models, and expertise in running simulations and optimization techniques. Our understanding translates into your benefits: 50% lower attrition rate, savings equaling hundreds of millions of dollars in receivables, and transformation of your customer retention unit into a profit center.