Industry stats* fueling the need for targeted sales and marketing execution.

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.

Customer Attrition/Retention

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.

Digital Adoption

10% Of consumers are “branch only”
12% Email addresses that are undeliverable
33% Average email addresses that are actually deliverable

< 30%

 Of consumers are “digital only”

 

Customer Relationship Management

49% Of CRM projects fail. 22% of implementation problems are linked to user adoption.
86% Of buyers are willing to pay more for great customer service.
47% Of CRM users say the system has had a significant impact on customer retention.
2020 By the end of 2020, customer experience will overtake price and product as the key brand differentiator.

Wallet Share

25% Wallet share of the average customer with a single institution.

Branches

40% Of people across generations visit a branch at least once a month.

Customer Contribution

$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.

Data Quality

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, PWC, Forrester Research, Walker, Nutshell