Customer value has been a key metric in most industries when assessing the value received by the business from customer relationship. Businesses in most industries have understood that long-term viability and long-term profitability are completely dependent on customers generating value in excess of the costs required to support their relationships.
This concept, while certainly not new or novel, has failed to permeate into Community Banking and Credit Union sectors. It appears that very few Community Bank and Credit Union executives fully understand customer value, and more specifically, the customer value for their organizations. And perhaps, more importantly, the effect of customer value has on the long-term profitability and likelihood of their institutions continuing as ‘going-concerns.’
Assessing customer profitability continues to be a challenge for banks and credit unions. While such evaluations can require a significant amount of time and effort, the results can yield valuable insight. In addition to providing information about desired customer attributes, analyses can provide visibility into promising channel and segment opportunities.
Read full article: http://bankblog.optirate.com/bank-and-credit-union-business-strategy-and-customer-life-time-value/#axzz1YPZB73a0
