Research On The Customer Churn Of Personal Business Loans Of Bank Y,Branch J

Over the past 5 years,personal commercial loans,the core product of personal business loans in Bank Y,Branch J are confronted with such severe challenges as lack of development and continuous customer churn.Regardless of the fact that there are numerous contributing factors such problems,only a small proportion play a key role in this process as evinced by the Pareto Principle.According to statistics,the cost of developing a new customer is 5 to 6 times higher than retaining an old customer.Therefore,it is of great significance for Bank Y,Branch J to effectively reverse the situation by finding out the key causes of customer churn and taking measures accordingly.The customer churn of Bank Y,Branch J has been contributed by both internal and external factors.To begin with,internal factors include the intrinsic problems of Bank Y,branch J which could be improved by enhancing its management and others.While external factors involve the change of external conditions,like the economic climate of real economies which can't be easily controlled.Additionally,the internal causes of customer churn in Bank Y,Branch J constitute a complex system characterized by the intricate interactions among various factors and the individual influence of each factor vary one from another,while DEMATEL is the most commonly employed method to distinguish the key factors in the system.This thesis,therefore,aims to study on the subject of the internal factors in the customer churn of the personal business loans in Bank Y,Branch J on the basis of the theory of the customer churn and the Pareto Principle by employing the DEMATEL as the main research approach.The research starts with researching related documents on the contributing factors to customer churn,interviewing the managing staff,some of the salespersons and customers involved in commercial loans in Bank Y,Branch J,followed by questionnaires designed to analyze the interactions among the internal factors by drawing on the knowledge and expertise of related personnel.Four prominent factors will ultimately stand out under the analysis based on the DEMATEL,namely the rotation of customer managers,the leaving office of customer managers,the ineffectiveness of post-loan visits,the part-time jobs taken by customer managers,the unfamiliarities between customers and customer managers,and the insufficient support from management department.Finally,suggestions will be proposed based on the mentioned six factors,which will hopefully help improve the status quo of customer churn in commercial loans in Bank Y,Branch J.This thesis,on one hand,provides feasible suggestions to improve the sluggish development of the personal business loans in Bank Y,branch J,on the other,attempts to explore the practical application of the method of DEMATEL to the customer drain in this bank,providing reference to other banks confronted with similar problems as well.