Magazine article American Banker

Listing 'Best' Customers, Selling Them More Are Checkpoints for Success

Magazine article American Banker

Listing 'Best' Customers, Selling Them More Are Checkpoints for Success

Article excerpt

The competitive pressures and changes our industry is undergoing require us to change our management paradigm and the key indicators we watch for signposts to success.

Here are some transitions we need to watch and emulate:

A customer-centric orientation is replacing the so-called silo organization of product line and geographic segmentation. The old paradigm organized and delivered services in the way that achieved maximum convenience for the bank. In our quest to become more customer-oriented, we need to realign delivery so that our "factories" produce products in a way that is seamless. Seamless delivery can take place at any customer touch point.

Market share has been king for many years. However, share of wallet of the "right" customers is much more meaningful than market share, especially when that is measured by deposit share rather than share of total customer investable dollars.

We have traditionally served customers, as Levi Strauss & Co. did, as though one shape fit all. Levi, however, has awakened to the fact that human beings are built differently, and it has achieved mass customization through different jeans cuts. We need to move toward the same recognition. Our customers' needs are various, and the rigidity of our products is customer un-friendly.

We used to give Cadillac service to every customer whether he or she paid for a Cadillac or a Chevy. We can't afford to do that anymore, though our customers are trained to expect it. We need to offer service to different customer tiers based upon their value.

We used to give away the store in an effort to attract all customers. Our job is not to transfer shareholder value to customers; it is to create value for all. While value propositions are critical to success, and we need to give our customers value, that does not necessarily mean giveaways. …

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