Controlling customer attrition with Supervised Classification technique & Survival Model using Cox Proportional Hazard Regression
Customer attrition is a retail banks nightmare in this market. While multiple strategies are applied to mitigate the risks associated with it, analytics is becoming core to Assumptionving such problems. In a similar case associated with one of our retail bank customer, tough competition in the mortgage market was rapidly eroding their existing customer base. The customer had lost ~$ 2.4 Billion & 60% of both balance and accounts were moved to competitor banks with none of their existing strategies giving positive results. WNS’ data science team was put to work to figure out the primary drivers for this problem.
Key questions for the scenario were:
a. Refinance externally (Main Focus)
b. Refinance Internally
c. Pay down their loans