ESI Results: A Case Study

A major North American bank introduced an ESI exchange solution to drive share of wallet consolidation of its mass affluent customers.

The client decided to source the collaboration sessions by making outbound invitations to unconsolidated customers, inviting them to attend a “free financial review” session. In this session, a banker accessed the ESI platform and followed the collaborative value exchange session flow prompted by the application. During the course of the session the customer shared their complete cross-bank products and balances in order to see if the session might identify an even better win-win arrangement.

During the session the exchange solution used information provided by the customer to conduct a series of tests to uncover potential “win-win” opportunities for both parties. These value exchange opportunity assessment rules included:

• Seeing where the bank’s rates were more competitive than where the customer currently held their balances, in order to recommend the balances be switched over
• Examining the products the customer had in place currently to see if there might be a better alternative solutions (ie converting high rate credit card debt onto a lower cost secured home equity line)
• Offering to gainshare a portion of the profit the bank would earn on any business the customer brought to the bank (i.e. transferred balances, referred business etc.)
• Sharing a portion of the cost savings the bank would realize on customers willing to reduce their cost of service (i.e. not require paper statements; use the online channel vs. the branch etc.)

The exchange solution would provide a proposed initial value exchange recommendation along with an objectively calculated benefit statement showing the customer the additional amount they would earn/save by accepting this recommended initial value exchange. From there, the customer could use the platform to iterate alternative value exchange options until they arrived at their preferred outcome. In all cases, the ESI platform would only allow the customer to illustrate an exchange scenario where the customer’s profitability to the bank was also greater.

What were the results of these 1:1 collaboration sessions?

• Over 70% of the customers committed to revised value exchange agreements.
• The average agreement contained a commitment to move almost 100% more balances
• Within just the first 3 months following the session the profitability of these customer relationships (net of the incentive payments and collaboration costs) had increased by over 30%.

Contact ESI if you would like to see additional case examples of the power of collaborative exchange optimization in your particular industry vertical.