|
Profit 15: An Expanded Look at Household Profitability
June 18, 2002 – Oakbrook Terrace, IL
Raddon Financial Group (RFG) announced they have enhanced their CEO Strategies Group program by adding a new segmentation scheme named
Profit 15. Profit 15 is a
groundbreaking new segmentation scheme that revolutionizes RFG’s traditional “A through E” profit segmentation.
The Profit 15 segmentation will:
-
Provide tactics that
DRIVE unprofitable households to
profitable status;
-
Identify how to
RETAIN at-risk profitable households at their current
profitable status, and
-
Offer strategic marketing tactics that will provide the biggest return on a credit union’s investment!
Over 500 credit unions currently participate in RFG’s CEO Strategies Group for a unique analysis of household profitability, product opportunities and overall performance.
RFG’s “A” through “E” profit segmentation
model segments households by their annual profit
contribution where “A” ($500+), “B” ($100 to $499), and “C” ($0 to $99) households
are profitable, and “D” ($-1 to $-99) and “E” (Less than $-100)
are unprofitable.
Profit 15 sheds new light on the current “A” though “E” profit segments and allows for the development of more refined tactical planning. For example, not all “A” households attain “A” (highly profitable) status for the same reasons. For some “A” households, real estate lending is the principle factor, while for others it is core deposits. Similarly, some “E” households are highly unprofitable due to CD pricing, while other “E” households are there because of aged or inactive loans.
Profit 15 details these differences. (A complete list and definitions of the 15 segments can be found on RFG’s website at
http://www.raddon.com/products/ceo/profit15.asp).
“This expanded profit segmentation has led to more refined tactics and offers our clients greater value from the CEO Strategies program” says Tom Hoscheidt, Vice President, Product Development.
RFG will use this segmentation scheme to identify database tactics that will more effectively leverage a credit union’s relationships with members, based on how they currently conduct business with the credit union. RFG will also identify several serialized database marketing approaches that can be most effective in improving the depth of relationship that members in the key segments have with the credit union.
Profit 15 has these benefits:
-
each
Profit 15 segment has a specific issue and action associated with it;
-
each
Profit 15 segment is prioritized for the best return on marketing investment;
-
each
Profit 15 segment is just a click away for
RFG iNTEGRATOR MCIF clients;
-
you'll
gain greater insight into why some members are more profitable than others;
and
-
using
RFG's
iService along with Profit 15 lets credit unions with or without MCIF systems implement tactics based upon these unique
segments.
“With the addition of
Profit 15, the next cycle of the CEO Strategies Group program promises to be the most tactical and detailed segmentation analysis we’ve offered our clients to date” adds Bill Handel, Vice President of Research. “RFG is committed to continually enhancing the CEO Strategies Group program and the rest of our integrated marketing solutions;
Profit 15 is one of many recent advancements”.
Credit unions of all sizes use the CEO Strategies Group to help manage their organizations. RFG integrates the credit union’s member database and financials (NCUA 5300) to determine how member participation impacts the bottom line. Credit unions receive an accurate assessment of account and household profitability.
Participating credit unions provide RFG with the following information:
RFG utilizes proprietary software to turn these data sources into valuable information, so management can make informed decisions with reliable data, while using the member segmentation to increase sales and build profitable member relationships.
The CEO Strategies Group is a semiannual program. Twice a year clients receive the CEO Strategies report, nearly 200 pages containing sections on overall performance (Board Report), Member Segmentation and Product Management. Each section is thorough and incorporates regional, national and field of membership (peer group) averages.
About RFG
For more than 20 years, Raddon Financial Group, Inc. (RFG) has provided primary research and marketing solutions to the financial services industry. Headquartered in Oakbrook Terrace, IL, RFG provides database research solutions to over 500 credit unions nationwide, including 37 of the top 50 credit unions in the country. To learn more about RFG’s integrated solutions, please visit
www.raddon.com or call 800.827.3500.
Contact Information:
Dan McGowan
Marketing Director
Raddon Financial Group, Inc.
701 East 22nd Street
Suite 400
Lombard, IL 60148
Tel. (800) 827-3500 x330
Fax. (630) 792-8700
comments@raddon.com
|
_____ |
