The approach is built around using customer data to identify borrowers with a high propensity to redeem. This is combined with changes to business processes and targeted multi-channel marketing campaigns, along with the development of stronger links with introduced customers.

The Talisma software allows lenders to create a single view of all customer information and transactions and to implement automated, segmented marketing campaigns that integrate post, telephone and the Internet as well as mortgage advisors and branches.

Craig Peden, head of consulting at Aspace, says a one per cent improvement in mortgage redemptions is typically equivalent to a two per cent reduction in administration costs.

"This low-risk, marketing-led approach that is easy to implement and does not require specialist training can deliver a return on investment in just six to 12 months," says Peden.

Aspace says there are typically three campaigns that can be implemented. The penalty period expiry campaign automatically identifies customers nearing the end of a discount period with high propensity to redeem and initiates communications and responses using e-mail, phone and face-to-face channels. The redemption indications campaign monitors for signs of redemption intentions and can filter low value accounts or those with a history of arrears. Finally, the introduced business campaign focuses on building 'provider' relationships with customers that have been introduced through IFAs, agents or brokers.

The launch of the marketing products and services package follows research conducted by Aspace in which CEOs from 18 building societies stated that customer retention was their number one priority.