|
For more information, click on the  icon.
Assist clients by leveraging key member/customer and profitability analysis to define
critical program structures.
- Program structures identification and analysis
- Operational analysis and design
- Business case definition (see project definition)
- Technology assessment
What is Relationship Pricing?
Relationship-based pricing is a management tool intended to extend additional
member/customer benefits and enhance organizational profitability by adjusting the price
paid (in rates and fees) by each member/customer to more accurately reflect the cost of
providing the product or service.
Members whose relationship contributes more to the cooperative
at a lower cost should pay less for each product or service since
they make a greater financial contribution to the organization.
Relationship-based pricing is often structured as a rule-based
program of benefits offered to eligible members/customers in recognition of
their level of participation. How Can Relationship-Based Pricing Provide Value?
To Your Membership:
- Ensures choice
- “Net” lowering in the cost of financial services
- Consolidation of financial relationships (simplicity)
- Alignment with expectations developed through participation
in other loyalty programs (i.e., credit cards, airlines)
|
|
To Your Credit Union:
- Retention of Members/Customers (loyalty)
- Growth (internal and external)
- Financial Performance (profitability)
- Behavioral influence
- Staff – deeper understanding of member’s/customer’s contribution
- Improved target marketing
|
Measurable Results
Design of a Relationship Pricing program in one of our clients
has seen:
- Over 50% increase in Platinum (highest participating)
members/customers since inception.
- Over 10% increase in Gold (high deposit participation)
members/customers since inception.
- Over 7% increase in Silver (high loan participation)
members/customers since inception.
Program Implementation Approach
| Strategy & Plan |
|
Detailed Design
|
|
Implement |
| Segment Members |
 |
Design Program Structures
|
|
Test Technology |
| Calculate Profitability
|
|
Build Technology
|
|
Execute: Communication & Training
Plans |
| Develop Conceptual
Program
|
|
Design Operations & Performance
Measures
|
|
“Pay Benefits” (Go
Live) |
|
|
Plan Communications & Training
|
|
|
|
