- February 26, 2018
- Posted by: Kevin Halsey
- Category: Analytics, Business Plans, Community Banking, Competitive Research, Distribution Channels, Retail Banking
Across the industry, the rate of branch closures has accelerated while operating leverage has simultaneously improved. It’s no secret that banks continue to rationalize their branch networks and optimize their delivery channels. To make the right branch and channel decisions with confidence, managers need insights on customer preferences and channel use, profitability metrics, market opportunity, and competition. These analytics help drive channel decisions, and CPG’s analytical tools can help. We put our tools to work in three areas:
Market Opportunity Analytics
Market opportunity can vary significantly across a branch network. It is important that banks are able to objectively differentiate opportunities as the tactics and strategies for branches in highly attractive markets will differ from those in less attractive markets. Top performing retail banks use these analytics to inform branch sales goal setting for example. CPG works closely with clients to define market opportunity, selecting the variables and analytical methodology that most closely aligns to the institution’s strategic priorities.
Branch Performance Analytics
Using a variety of metrics, including profitability and sales results, branch performance is evaluated in line with an institution’s strategic priorities and objectives. Insights from this analysis and the market opportunity analysis can be combined to inform decisions related to resource allocation and the priorities for enhanced sales management. CPG’s BankRank performance matrix helps clients think about these critical branch planning decisions on a branch-by-branch and market-by-market basis.
Digital & Channel Usage Analytics
The growth of digital has produced major impacts on banks’ abilities to attract, grow, and serve customers as well as impacts on the ways both customers and banks perceive branches. CPG helps banks develop insights from channel usage data to understand the implications for channel optimization. CPG has also helped clients to use this information as a performance management tool, increasing the effectiveness of onboarding programs and increasing enrollment and usage of digital channels.
CPG’s analytics have helped clients to deliver the following results:
- Better placement of physical facilities in markets with higher opportunity.
- Better allocation of resources/investments leading to higher returns and improved financial performance.
- Higher sales volume and new-to-bank household acquisition rates.
- Lowered costs of transactions as a result of customers performing non-value-added tasks outside of the branch.
To learn more about how CPG can help you to build channel analytics, please contact Kevin Halsey (202-337-7873).