Do you know your most profitable customers?

By Steve Lawrence

In today's market, everyone has come to the realization that the key to improving the profitability of their company is tied to two questions. Which customers are making their organization the most money; and how can they affordably find more of these types of customers?

Unlike other businesses that sell tangible products, banks and credit unions sell intangible products. The income and expenses these products generate are difficult to measure at the product level because the financial statements are not set up for this task. In light of this, cost accounting methods must be used to identify and assign various types of income and expenses from the financial statement to its products. This is an art as well as a science.

The end result of this process is that profitability data is developed for each product. This profitability data is used in conjunction with account-level data within a data warehouse or cost accounting software to calculate profitability for each account.

Doing all of this in an efficient and affordable way can seem overwhelming to many organizations. There is a company that can help you understand your account holder and product profitability, and craft the marketing message to help retain your profitable account holders, and find new account holders just like them.

One of the newest offerings from Curtis 1000 is a profitability analysis tool called ProfitVue. This tool takes a cost accounting approach using information pulled directly from your general ledger to tell you which products and which account holder segments are the most profitable to your financial institution. The ProfitVue report is a cost effective way to analyze profit prior to employing a MCIF system. It is also an easy way to understand profit if you have an MCIF system but do not use the profit analysis module.

The ProfitVue software will break down your organization by product type and account holder set providing you with a comprehensive report that will not only give you a visual snapshot of your profit, but give candid recommendations about how to change your marketing to grow your bottom line. Curtis 1000 utilizes the profit report to assist community banks and credit unions in developing unique marketing strategies that can generate more accounts, account holders and revenue for their organization.

Learn more by contacting your local Curtis 1000 sales consultant today to view a sample ProfitVue report.