CEO BC Krishna on Identifying Customers Based On Need, Not Revenue
BC Krishna, CEO of MineralTree, recently published an article in Bank Director titled, “Identify Your Customers Based on Need, Not Revenue,” that explores how banks can better identify and serve mid-market business customers.
Historically, banks have tried to segment customers based on their annual sales or revenue range. But as BC wrote in the article, “revenue is a misguided way for banks to segment their corporate customers, particularly when it comes to the mid-market.” Since most mid-market companies aren’t public, and therefore not compelled to report revenue, the numbers banks operate on are loose estimates at best. A more effective way for banks to target customers and strengthen customer relationships is to use transactional data to determine customers’ needs. BC recommended that banks learn about a customer from their outgoing payments, and asking questions like:
- How many payments are they making each month?
- What methods are they using to make these payments—paper checks, ACH, credit cards, debit cards?
By looking at the volume of payments and the methods being used, banks can determine how to market and sell existing products more effectively. Payment data can also show areas where a bank may be failing its customers. For example, if there is a large number of customers processing payments through a third-party solution, it’s an obvious sign that the bank needs a better payment solution.
The bottom line? According to BC, “In today’s golden age of big data and analytics, banks need to leverage far more than just revenue figures to better understand their customers.” Once banks have a more accurate idea of what their business customers need and want, they can focus on offering the capabilities that customers need and expect. For example, financial institutions that take advantage of automated technology solutions like MineralTree Invoice-to-Pay, can offer white-labeled, easy-to-use invoice and payment automation solutions to business customers.
Click here to read BC’s full article via Bank Director online.← Back to Invoice-to-Blog