A Study on Customer Attrition and Winback Strategies of a Securities Firm

• Main Authors: Hsiao-pei Kao, 高曉佩
• Other Authors: 王居卿
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/96098885416103181778

碩士 === 淡江大學 === 企業管理學系碩士在職專班 === 96 === Under the environment of the ripe market and the tough enterprise competition, more and more companies realize that the most precious assets are existing customers. Deregulation in the securities industries is increasing competition in the securities marketplaces. There are no difference of each securities firm’s products (including stocks, bonds, futures and options), so how to retain customers is the most important subject of securities firms. This paper explore the reasons of customer attrition and winback strategies in the warehouse data of Y securities firm. The first part of this study explores the reasons of customer attrition using survival analysis, then clusters customers to four groups by customer’s survival function to understand every groups characteristics. The second part of this study explores customer winback strategies. Our finding suggests that: (1)some customer behavior predictors - total number of accounts, total number of products, monetary values, and trading amounts - have negative impact on customer attrition;(2)age and gender have significant impact on customer attrition;(3)merger have significant impact on customer attrition;(4)for restart customers, internet trading customers are more likely reacquisition than other customers;(5)trading fee have significant impact on recapturing lost customer; and(6)for restart customers, the length of their first tenure with a firm is positively related to reacquisition probability. According to the conclusion of this research, by predicting which customers are likely to churn, a securities firm can reduce the churn rates by offering the customers ‘new’ incentives to stay. In addition, by exploring how to recapture lost customers, we provide some suggestions for securities firms to focus on customers who are more likely to be required, particularly lowering trading fee to recapturing lost customers.