I was in cash management consulting for a very large bank, and we catered to the Fortune 500. Our goal was to to grow our business, and also to retain existing relationships.
The problem was that they valued all relationships as if they were the same. They looked at revenue, and it was a huge mistake. We wasted company resources extensively.
At my previous employer, we evaluated every service our clients used, and assigned an ROI measure at a micro (service level) and macro level (overall client profitability) for each relationship. We then knew which relationships needed to be modified or booted, which relationships were profitable and should be expanded, and which services provided the highest return to the bank.
It was a stark contrast between these two employers, and one did a 5 star job of helping us identify our priorities.
The way larger corporations operate
I was in cash management consulting for a very large bank, and we catered to the Fortune 500. Our goal was to to grow our business, and also to retain existing relationships.
The problem was that they valued all relationships as if they were the same. They looked at revenue, and it was a huge mistake. We wasted company resources extensively.
At my previous employer, we evaluated every service our clients used, and assigned an ROI measure at a micro (service level) and macro level (overall client profitability) for each relationship. We then knew which relationships needed to be modified or booted, which relationships were profitable and should be expanded, and which services provided the highest return to the bank.
It was a stark contrast between these two employers, and one did a 5 star job of helping us identify our priorities.