Most financial institutions execute marketing campaigns based on gut instinct. That’s because it’s so difficult to get a holistic view of a financial institution’s customers and markets. Industry numbers show the huge costs/lost opportunities of doing business this way and the data challenges that are standing in the way.
| 15% | Average customer attrition rate among retail financial institutions per year. |
|---|---|
| 1 – 2% | Percent of net income loss for each point of customer attrition represents. |
| $200 | Average acquisition cost for a new customer. |
| 200% | Customer attrition within the first 3 to 6 months can be up to 200% higher than higher annualized attrition rates. |
| 25% | Wallet share of the average customer with a single institution. |
|---|
| 40% | Of people across generations visit a branch at least once a month. |
|---|
| $300 | Average revenue contribution by customer per year. |
|---|---|
| 20% | Percentage of accounts that contribute profits equaling 200% of overall return. |
| 50% | Average percent of accounts that generate losses. |
| 500
million
|
The number of data elements per $1 billion in assets an average financial institution has. |
|---|---|
| 2.5 – 3.4% | Rate that a financial institution’s data decays each month. |
| 40% | Percent of keyed customer data that has errors. |
| 1 in 6
or 43 million
|
Number of people move every year, and 15% leave no new address. |
| 1.5
million
|
The number of new addresses are added every year. million |
|
Up to
25% |
Percent of data in an average financial institution’s CIF/CIS that is incorrect. |
|
Over
50% |
Percent of CRM projects fail because of data problems. |
*Sources: Tower Group, Bank Administration Institute, Gartner Group, Fiserv, FDIC, USPS, Deliotte