Data that you can use at your fingertips. It should tell you about customers, products, services, and the effects of the pandemic on bank performance.
WE HELP DEFINE DATA MEANING
What defines a profitable or unprofitable customer? The criteria is critical to understanding customer behavior and improving bank performance.
INSIGHTS TO DRIVE BETTER LONG-TERM DECISIONS
Data insights uncover what people want and how they interact with your bank. What's the best source of profitable customers? Should you offer certain products?
CUSTOMER PROFITABILITY SCORE
"The simple truth is if you fail to focus on profitable customers you'll fail in the ability to serve all customers.”
299 South Main Street
Salt Lake City, UT 84111
WHY CUSTOMER PROFIT SCORE?
Guidance for better decisions
Determining the most important and profitable products/services to offer your customers
To understand which customers will yield the highest return
Figure out how to acquire new profitable customers at the lowest cost
Upsell- converting unprofitable customers into profitable customers
Refining relationship pricing and rewards programs
Reduce customer abandonment
Compare customer score attributes of one customer to another
WE KNOW COMMUNITY BANKS
When we started working with community banks...
Home Banking” was done with a bank-issued 3 1/2 inch hard floppy drive containing the program to install on your Windows PC.
“Connection” to your bank accounts was done via a telephone line and modem.
Mobile phones were just, well, phones. Smartphones and mobile apps were years away
"Green-screen terminals" running UNIX or COBOL drove branch operations.
We’ve seen lots of technology change and expanded bank services. Our team has over 40 years The COVID-19 chaos has upended the predictive value of your systems data. You must determine who are your profitable customers, what’s their buying journey and how to keep them.
We’ve worked on core systems, mobile and online delivery, marketing & relationship pricing applications, mortgage/direct/indirect lending and imaging. All of your systems store valuable customer data but without converting it to business intelligence it’s value is limited.
How do we calculate Customer Profit Score?
Lifetime Customer Value unveils the profit value of each customer as well as the Customer Persona and Customer’s Journey.
These derive from three sources:
Monetary Values (transaction history)
Non-monetary value (net promoter score from surveys and interviews and overall customer satisfaction)
Future Value (data modeling from monetary and non-monetary data)
You will know:
The exact dollar value of each customer now and in the future
Profitable Customer Persona (20% of customers)
Low revenue positive and revenue negative personas (80% of customers)
Customer journey - From awareness to consideration to joining the credit union, to retention and to growth
Understanding customer acquisition costs and their impact on ROA
Insights to move customers from low revenue positive and revenue negative into the
revenue positive group
Perception of customer service
Perception of the customer experience
Which customers recommend your credit union to friends and family
Failing to understand Lifetime Customer Value leaves you guessing at customer service, marketing, operational initiatives, and product design. You set goals without understanding if you can profitably achieve them. Your reports and data are subject to gut-feeling interpretation and give you no predictive value.