• Major losses in the bank’s personal checking accounts • Increasingly wanted value and personal service • Fierce industry responded to deregulation and new niche market entrants • Changes in banking regulations • Smaller banks changed their focus away retail banking or were acquired by larger banks • Deregulation of the financial industry allowed crossover between banking, trust, securities, and insurance which had been kept separate • Internet banking and lowering of protections for domestic banks allowing foreign banks to enter the market 2) • CRM system could allow its personal bankers to access a customer’s transaction history • Address, age, and account balances • All contacts the customer had at any company location, phone center, or Internet site • What level of service the customer qualified for, based on current and future profitability • What products the customer held at the time of the call • What products the customer was targeted/approved for by sales and marketing • How the customer responded to targeted direct marketing campaigns • Call centers, branches, and direct mail are critical to the customer experience • The consolidation of the regional sales and marketing groups meant that instead of calling regional offices for lead lists, branches received lists from the sales and marketing office in Toronto • Everyone had access to the “lead” list and it was available electronically • Account manager work was done more efficiently because they knew the customers needs 3) Why? • Needed more robust profitability measurement • Helped align the sales force around customer profitability and planted the seeds for the new customer-centric organization • To better understand customers for better decision • To find out about Lifetime value individually How? • They used aggregate information rather than actual data • Bank analyzed its customer base and distributed the customer profit over deciles • 20% accounted for 100% of its profit • Used 3 model “A” customers made the most profit, “B” customers made some and “C” customers broke even or lost money What? •

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