Customer Analysis

Our overall approach to customer analysis involves identifying opportunities in a bank’s commercial customer base to improve profitability through building deeper and/or broader representation with existing relationships. Additionally, it entails identifying those “market niches” where the bank is strongest and those in which there are opportunities to develop more profitable relationships.

The steps in these analyses include:

 

• Determination of Customer Concentration(s) - This procedure involves determining the percentage of a bank’s customers which are responsible for specific levels of profits and balances. It also delineates the potential for building deeper penetration within the existing customer base.

 

• Statistical Characteristics - This analysis provides a summarization of the general characteristics of the customer base with respect to: average balances, major  industry concentrations, distributions of relationship sales size, age of business, life cycle positioning, risk positioning, and average product potentials.

 

• Share of Wallet - This procedure establishes the bank’s current share of its customers product potential along with the maximum dollars of additional potential which can be achieved from cross-selling emphasis.

 

• Market Share - This analysis examines the bank’s current share by industry and size of firm and identifies relative market strengths and weaknesses.

 

• Cross-Selling Opportunity - This analysis identifies prospects for selected selling activities within the Bank’s customer base.

 

• Three Digit Industry Group Prioritization - The final stage in market analysis is to determine based on established weighting schema, particular industry segments which appear to offer the best overall marketing opportunities. The weighting elements employed in this analysis are typically jointly established by Oxxford and client management.