Analytics | Business Intelligence | Management

Deposit services: consumer value worth paying for

Sun, 14 Feb 2010 19:13:11 GMT

The outstanding value delivered every day to consumers by core demand deposit account (DDA) services through retail banking operations of consumer banks is getting lost in the currently fashionable cacophony of media bank bashing. As an industry we have been remiss in communicating just how good we...

Event detection versus transaction detection as marketing action triggers

Mon, 11 Jan 2010 17:08:35 GMT

Information management strategy lags the development of technology in most industries, and banking is no exception. We have seen the march of progress towards customer intelligence from initial customer identity management in the late 1980s through consolidated customer position snapshots (Customer...

Unprofitable Customers: Naughty or Nice ?

Mon, 14 Dec 2009 21:57:33 GMT

Customer value helps identify the top tier customers we need to focus retention activity on, but what of the other 80% of customers who generate nominal or even negative contribution? Are they naughty or are they nice to have in your portfolio? This question has been troubling strategists and...

The cost of underutilizing analytics

Tue, 17 Nov 2009 02:33:53 GMT

I recently had the pleasure of hearing the thoughts of several community members concerning the state of analytics in their banks. Interestingly there appears to be a widespread sense that "it is tremendously underutilized due to lack of analytics resources". This came as a real surpise after the...

How much of your sales are really new money ?

Thu, 15 Oct 2009 19:27:25 GMT

Are you getting value for your investment sales commisions ? Or are you paying your sales people to churn the book ? It is often difficult to tell what the basis of commissions should be for asset gatherers. Only about 15% of deposit growth comes from new customers, so targeting and rewarding new...

Customer Lifetime Value

Mon, 21 Sep 2009 15:07:35 GMT

There are many definitions of CLTV floating around, and even more views on how it should be used. We thought it might be useful to cast it open to discussion here after sowing some initial seeds...please feel free to weigh in with your perspective. In our view, CLTV is an overrated metric for...

Revenue / payroll dollar : a driver analysis technique

Wed, 19 Aug 2009 22:07:37 GMT

Each recession I like to revisit some old gems like this... they never seem to lose their relevance. Revenue per payroll dollar is a key metric to evaluate the efficiency of any service business and banking is no exception. It's common knowledge that staff related costs are the most controllable of...

What is a cross-sale, anyway ?

Thu, 16 Jul 2009 18:04:01 GMT

We all want to cross-sell more to our customer base, but most institutions have surprisingly poor metrics for this strategic activity. Research has firmly established that customers with multi-product relationships actually do show higher value, lower price elasticity and lower propensity to leave -...

Rediscovering retail deposits

Thu, 11 Jun 2009 19:24:34 GMT

It is no secret that banks throughout the world are rediscovering the importance of retail bank deposits as a stable source of low cost financing, especially in comparison to raising capital in this financial environment. However even deposit taking is not something to be undertaken without caution,...

IBM's new Business Intelligence practice

Fri, 15 May 2009 17:19:50 GMT

Last week I enjoyed a particularly interesting luncheon meeting with a practice head partner from IBM Canada where we discussed the launch of their new consulting practice in the Business Intelligence space. After years of struggling to figure out the optimal way to combine the acquired talent and...