Smart Planet: Loyal or lucrative customers may not be the most profitable customers

A few years back, the head of a business intelligence tools vendor that served the banking sector made an interesting revelation to me about what some of his banking customers were learning. While they all had chased the high-income, high-deposit customers to increase profits, analysis of their revenue streams showed an entirely different picture: that their most profitable customers came from the lower income, lower-deposit end of the scale. How is this so? Because these people had to pony up fees for overdrafts and not meeting minimum balances and so forth.

 

http://www.smartplanet.com/business/blog/business-brains/loyal-or-lucrative-customers-may-not-be-the-most-profitable-customers/1309/


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