Exhaustive and expensive analysis has led bankers to the truism that fewer than 20% of their customers contribute 100% of profits. We call those our "A" customers, the best of the best, whom we must protect.

It could take more than 100 new customers to make up for the profits lost from the defection of a single outstanding client. In fact, some suggest that many customers do not have the potential to become profitable at all. Therefore, we should find ways to convert them to profitability through higher prices or lower servicing costs, or find a way to exit that part of the market.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.