Do you know why some branches perform better than others?
The performance of a branch is measured by the productivity
of the branch households and the share of households developed from the surrounding
community (market penetration). Our services begin with development of a database
of your application files or MCIF records. These records are geocoded and organized
by household prior to our analysis of dispersion and productivity.
Our geographic analysis depicts characteristics such as
market share, service area size and customer concentrations.
Our analysis of the database enables us to determine individual
branch characteristics such as product balances, portfolio composition, household
product use, non-balance service use, transactions by type, and household retention.
These characteristics can be compared to other branches or customized as tracking
reports measuring performance vs. objectives.
Following are some of the branch characteristics analyzed
by Market ID.
Branch market share can mean the share of deposits compared
to local competitors or the share of available households that are branch customers
or members.
A pattern of geographic market share is developed when
the number of branch households in each local neighborhood are matched with
updated counts of total households in that neighborhood. The result is market
share of households, which can be presented as a thematic map to depict regional
patterns of market penetration. A tabular presentation of this same data combines
market share and market demographics to identify the characteristics of productive
markets.
This analysis provides a basis for determining performance
expectations in any new market areas under consideration.
A primary market area is the geographic area that provides
the majority of customers or members for a branch. The area definition is influenced
by the age of the branch, competition, market demographics, number and type
of employees, retail support, exposure to traffic, physical characteristics
and many other factors.
For resident-based service areas, delineation is based
on the share of available households in each micro geographic area such as a
census tract. Once mapped, services areas indicate under-served markets and
areas of overlapping branch coverage.
Rather
than depicting market share or penetration, household distribution can be mapped
by showing the actual residence location of each household. This dispersion
pattern around each branch shows the influence of major traffic arterials, patronage
of local retailers, housing density, market demographics, competition and other
factors.
The geographic distribution of balances is based on the
place of residence of customer or member households. Tabular data provides an
indication of balances by neighborhood but additional calculations enrich the
file with measures of household productivity. Total balances result from a unique
combination of available households, household penetration, accounts per household
and average account balances. Our analysis identifies neighborhoods where these
productivity levels are particularly high or low.
A visual presentation of the distribution pattern for a
branch provide an indication of the geographic area of influence for each office
Market ID can utilize your profitability calculation or
develop estimates based on our proprietary methodology. Profitability is calculated
for individual branch households and then aggregated for each branch to determine
its contribution. Household profitability also is organized geographically to
determine the profits and average profits per household for each neighborhood
surrounding a branch.
These profitability factors are easily mapped to depict
aggregate or average household profitability by census tract for each branch.
Branch comparisons provide an indication of the relative
strengths of individual offices. Our analysis concentrates on the quality and
source of business for each branch, not just balances. Quality relates to the
relationships and productivity of households using each branch. The source of
business involves the geographic locations of businesses and households that
use a branch. This can include service area size, market demographics and number
and type of business relationships.
Tracking reports are used to measure branch performance
against corporate standards or branch objectives. These goals may be stated
as ratios, balances, percentages or numbers. Tracking periods can be monthly
but reports are more likely to be updated quarterly. These profiles capture
a broad array of data in a single document and enable managers and marketers
to identify their strengths and weakness.
Unlike financial reports, tracking reports measure
household relationships, branch and service use and market characteristics in
addition to accounts, balances and production.