“Never sell yourself short. Know your worth in a relationship.” It’s a wise counsel that advice columnists in newspapers and magazines have been handing out freely through the years, but it seems that many banks may need a little extra TLC. They do know without a doubt, that customer relationships are critical to their business. They may even employ a manager with “relationship” in their job title, whose job it is to grow the ‘business’ for the bank - but pulling back the layers on that may reveal that ‘business’ is sometimes synonymous with ‘loan’ and ‘relationship’ really means ‘transaction’.
It is hard to blame them though, knowing the actual economic value a relationship brings to a bank or what the bank brings to the customer is difficult, so putting a price on the relationship that reflects the true value is nearly impossible. This combination ultimately leads to ill-informed decisions, hinders profitable loan origination, and increases the risk of customer churn.
There is now strong pressure to change this state of affairs.
Fill out the form to read our whitepaper to learn more on the adoption of relationship-based pricing to overcome current market challenges and achieve long-term profit and growth.