How is Security National Bank leveraging technology to improve customer relationships and boost profitability?
Two years ago, Security National Bank implemented IPS-Sendero's (Atlanta) Customer Profitability System. The system helped the bank determine that the top 10 percent of SNB's customers were generating about 130 percent of the bank's profits (40 percent of customers have a negative impact on profitability).
Once we knew who those top customers were, we implemented a retention strategy to make sure that our entire staff knew who they were. Every customer is important, but we need to go the extra mile for our best clientele. Then, SNB focused on how to improve the profitability of relationships that are currently costing the bank.
About a year ago, SNB added IPS-Sendero's Catalyst product, which works along with Information Technology Inc.'s (ITI; Lincoln, Neb.) Premier system and delivers the customer profitability data to the desktops of front-line staff and customer service reps (CSRs). The bank plans to segment this data into a five-star rating system. Tellers and CSRs will be able to make pricing and fee income decisions and make product and services referrals based on the rating system.
Keith Knudsen, Executive Vice President, Security National Bank (Laurel, Neb.; $95 million in assets)