Axiom Blog Know Your Customers Empirically: Understanding the Value of the Relationship

In part one of this blog series, "Know Your Customers Empirically: A Customer's Perspective," my colleague Roy Berelowitz demonstrated-through the customer's eyes-why bank and credit union executives should understand the value of their customers/members (hereafter referred to as customers), and the implications of not doing so. In this follow-up blog, I explore how to better identify individual customer value-first by measuring the contribution of each customer to overall institution profitability, and then by assessing the full scope of each customer's influence. Through these two steps, financial institutions gain a thorough understanding of their customers based on experience and observation-the hallmarks of empiric, data-based, and sound business practice.