Stop treating everyone the same.
Some bank customers are better than others. And by better I mean more profitable. It’s time to start treating your customers based on their profitability.
Businesses all across America do this. Airlines, grocers, pharmacies, casinos, restaurants…even the local sandwich shop. They reward their most profitable customers with extras and bonuses just for them. And they motivate and cajole their less profitable customers to prod them towards higher profitability.
You should do the same at your bank.
Make sure you endlessly reward your most profitable customers. And relentlessly push your less profitable customers toward higher profits. Simply by focusing on profitability you will improve it.
But there’s just one problem…
…You don’t know their profitability.
Without knowing their profitability you risk rewarding and penalizing the wrong customers. That’s counterproductive.
Don’t worry. This is easy to fix.
Unlike all those other businesses you already have all the data you need buried deep within your core system. While you’ve been focused on other things your core system has been silently capturing all the customer data you need.
It’s an easy next step to use it to calculate detailed instrument-specific P&L statements on each and every account.