|
|
 |
|
Viewing report
|
|
|
|
Proactive Customer Retention in Personal Loans in the Australian Market
Retail Finance Intelligence (RFI), Feb 2010, Pages: 14
In the world of personal loans, repayments prior to end of loan term are one of the biggest issues for lenders. This report looks at the strategies employed to mitigate early repayments and makes suggestions for the Australian market.
Introduction
With the prevailing outlook being that it is far less costly to retain current customers than it is to attract brand new customers, this report will discuss the ideas behind proactive customer retention and why this approach would be beneficial to banks in general and specifically for the personal lending arms of banks. The report will also look at examples of proactive customer retention by the non-banks and how similar efforts could be implemented within the banking industry
Scope and methodology
The report uses data from surveys conducted online by RFI during December 2008, March 2009 June 2009 and October 2009. It also uses historical and current data available from the ABS, APRA and RBA. The data is used to:
- Understand levels of customer satisfaction with their lender
- Gather information on consumer spending and debt repayment habits with particular reference to personal loans.
- Understand the attitudes of personal loan customers towards debt in order to aid customer retention
Highlights
In the personal loan arena customers were highly likely to state that they would borrow from their lender again if they needed another personal loan, although this was mainly due to the product or the MFI status of their lender rather than the service received. This trend does not only apply to the big banks, with small proportions of satisfied non bank customers indicating that this was due to the service with only 51% of satisfied credit union customers indicating this was due to good service.
Proactive retention strategies for personal loans could include encouraging customers towards more profitable or long term products, such as credit cards, by reducing the interest owed on the personal loan for any interest paid on the credit card.
Reasons to read this report
- To gain insight into the current sentiment of personal loan customers
- To identify problems with current customer retention strategies as well as possible improvements.
Customers who bought this item also bought
Retailer Financial Services in North and Latin America
Personal Lending in Australia 2010
Credit Card Retention Strategies
Personal Lending in Australia
Key Trends for Australian Credit Card Customers 2011
Australian Credit Card Consumers 2010
Targeting Gen Y for Personal Loans
Creditor Insurance in Northern, Central and Eastern Europe
Australian Credit Card Customers 2009
UK Personal Lending 2009
|
|
|
|
