Tag: loan origination solution

Customer churn has a devastating effect on businesses. On the flip side, it is estimated that a 5% increase in customer retention can lead to a 25-95% increase in profits.

 

When a customer churns, it not only means a lost deal in the short term—it also means another competitor gains a long-term asset and can expend that asset improving their products. Every business loses customers. But it’s the quality and rate of your attrition that can kill your business growth. The higher the churn rate, the more money you lose every month.

 

The consumer lending business has one of the worst customer retention rates of any business. Borrowers are more likely to consider refinancing options whenever existing mortgage deals revert to a standard rate. So, lenders must be vigilant at the threat of losing their current borrowers. 

 

Why is customer retention crucial to business?

 

Customer retention means that a single customer will continue to buy from you over several years – which is described as the Lifetime Value (LTV) of your customer. Customer retention measures not only how successful a company is at acquiring new customers, but also how successful they are at satisfying existing customers.

 

Customer churn is a crucial matrix for businesses that want to survive.”

There are a few reasons why customer churn is crucial to business:

 

1. Affordability: It’s 5-25X more expensive to acquire a new customer than to retain an existing customer.

2. ROI: A 5% increase in customer retention can increase company revenue by 25-95%.

3. Loyalty: Retained customers buy more often than newer customers.

 

Customer retention will not improve overnight. To increase retention, understand why you are losing the existing customer, and what stops them from returning. However, if you have a few solid strategies up your sleeve, you can coax repeated customers more. 

 

Customer retention strategies 

 

1. Get feedback from customers

2. Create personalized customer loyalty schemes

3. Predict customer churn rate from historical data

4. Improve customer experiences across channels

 

How Insight Consultants can help

 

The good news is that by leveraging the power of AI and Automation, Insight Consultants can help your businesses to retain a customer for life.

 

1. Create customer loyalty schemes through AI-powered segmentation

2. Add Intelligent automation to existing IT systems for a personalized customer journey

3. Identify and score churn indicators through Predictive Modelling 

4. Share customer performance through reports and dashboards

 

We believe that with us, you can make great and useful changes to your customer retention. Take a small step and Talk to us  and begin your retention journey now!

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The lending industry is data-intensive with massive graveyards of unused and unappreciated credit processing data. As lending firms and credit bureaus face increasing pressure to stay profitable, understanding customer needs and preferences becomes a critical success factor.

But businesses still struggle to make data-driven business decisions, relying instead on all classic strategies — experience, status quo, and “gut feeling” about the right way to do things. 

So how Lenders can effectively gain insights from data to make better, data-driven decisions.

The solutions is Data Analytics.” 

Data and analytics help firms maximize performance, reduce cost, and improve performance & overall profitability. Using analytics, you can reach out to the right customers and improve customer acquisition. It also assists in efficient delinquency management and comprehensive loan servicing. By increasing the loan life-cycle value, the lenders can retain their most profitable customers.

 

Being the best in an industry is no longer enough; companies must aspire to be at least at par across industries to compete effectively. So, firms should take the right tactic.

 

The approach to implementing analytics:

 

1. Align business goals with analytical outcomes

2. Identify the right analytical partner/tool

3. Identify the best data visualization tools

 

How can the data and analytics help Lenders? 

 

The consumer lending business is based on the notion of managing the risk of borrower default. Credit scoring systems and predictive models identify the chances of uncertainty and guide in detecting risk. It gives the lenders a clear picture of defaulters. It can help lenders to make faster and more accurate credit decisions. 

 

Key benefits:

 

1. Reach the right customers with the right products

2. Deliver a superior customer experience through faster on-boarding

3. Identify, target, and retain the most profitable customers

4. Drive-up recovery rates while driving down collection costs

 

Insight Consultants offer

 

1. Customized credit models to reduce lending risk

2. Delinquency prediction models to lower loan delinquency rates

3. Workflow automation via ML models which can substantially reduce costs and time associated with internal loan processing and turnaround.

4. Data-driven Customer Segmentation to maximize the value of each customer 

5. Improved collection models which segregate risky customers 

With several years of experience in the lending domain

 

Insight Consultants offer a powerful and user-friendly Lending solution that enables informed decision-making through accurate predictions and easy-to-build decision models. If you are looking for ways to harness the power of data analytics.

 

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Top 5 steps in selecting your lending technology

Today’s customers expect fast and seamless operations and therefore lending firms are looking for ways to make their services more efficient and profitable to both lenders and borrowers. Technology is the tool lenders rely on most to gain competitive advantages over their rivals. Identify and embrace the right technology is most essential for the lenders… Continue reading Top 5 steps in selecting your lending technology

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