The Customer Profitability Segmentation page provides an overview of the segmentation data included in the following seven pages. This data includes:
- Customer Segmentation based on Net Contribution Net of One-Time Cost
- Accounts per Customer
- Balance Distribution
- Net Contribution using 25 Segments
- Deposit Products for Most and Least Profitable Segments
- Loan Products for Most and Least Profitable Segments
Customer Segmentation Net Contribution (Quintile)
The Customer Segmentation divides the entire membership pool into five groups (quintiles), each representing twenty percent of the membership pool. The net contribution (profitability) of each quintile is represented graphically.
Net Contribution by Profitability Segment
The Net Contribution by Profitability Segment graph spans pages 31 and 32 of the Profitability Analysis Presentation. Each page displays the current quarter's profitability by net contribution, less one-time costs.
In this graph, the y-axis indicates the net contribution amounts. The x-axis displays numbers 1 - 5, which indicate the five segmentation quintiles. Each quintile contains a bar which represents the net contribution amount.
- If the account holder segment has a positive net contribution, the bar is green.
- If the account holder segment has a negative net contribution, the bar is red.
To the right of the graph, the Profitability Analysis Presentation displays commentary on the customer segmentation net contribution. This commentary spans pages 31 and 32 of the Profitability Analysis Presentation.
- On page 31, the comments inform users how to read the graph.
- On page 32, the comments indicate the performance of the top and bottom quintiles.
Net Contribution and Accounts by Profitability Segment
The Net Contribution and Accounts by Profitability Segment page displays a dual axis, double bar graph indicates the net contribution and average number of accounts on file at an institution for each quintile.
In this graph, the x-axis displays numbers 1 - 5, which indicate the five segmentation quintiles.
The left y-axis indicates the net contribution amount. Each quintile contains either a red or green bar, which represents the net contribution amount.
- If the account holder segment has a positive net contribution, the bar is green.
- If the account holder segment has a negative net contribution, the bar is red.
The right y-axis represents the number of accounts per customer/member. Each quintile contains a beige bar, which represents the average number of accounts each quintile has at the institution.
To the right of the graph, the Profitability Analysis Presentation displays commentary on the net contribution and account by customer segmentation. This commentary indicates the net contribution and account performance of the top and bottom quintiles.
Net Contribution and Average Balance by Profitability Segment
The Net Contribution and Average Balance by Profitability Segment page displays a stacked dual axis bar graph that indicates the net contribution and average balances for each quintile.
In this graph, the x-axis displays numbers 1 - 5, which indicate the five segmentation quintiles. The left y-axis corresponds with the grey portion of the bar and indicates the average balance. The right y-axis corresponds with the grey portion of the bar and indicates the net contribution amount.
To the right of the graph, the Profitability Analysis Presentation displays commentary on the net contribution and account by customer segmentation. This commentary indicates the net contribution and account performance of the top and bottom quintiles.
Customer Segmentation Net Contribution: 25 Segments
The Customer Segmentation Net Contribution: 25 Segments page divides the entire membership pool into 25 groups, each representing four percent of the membership pool. The net contribution (profitability) of each segment is represented graphically in the following bar graphs:
- Net Contribution by Profitability Segment
- Top 5 and Bottom 5 Net Contribution by Profitability Segment
Net Contribution by Profitability
The Net Contribution by Profitability Segment displays the current quarter's profitability by net contribution, less one-time costs for the 25 customer/member segments.
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This graph enables institutions to get a micro view into the performance of the top performing and bottom performing quintiles identified in the Net Contribution by Segment page. |
In this graph, the y-axis indicates the net contribution amounts. The x-axis displays numbers 1 - 25, which indicate the 25 customer/member segments.
Each segment displays a bar which represents the net contribution amount.
- If the account holder segment has a positive net contribution, the bar is green.
- If the account holder segment has a negative net contribution, the bar is red.
Top 5 and Bottom 5 Net Contribution by Profitability Segment
The Top 5 and Bottom 5 Net Contribution by Profitability Segment displays the current quarter's profitability by net contribution, less one-time costs for the top five and bottom five customer/member segments.
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This graph enables institutions to get a micro view into the performance of the top performing and bottom performing quintiles identified in the Net Contribution by Segment page. |
In this graph, the y-axis indicates the net contribution amounts. The x-axis displays numbers 1 - 5 and 21 - 25, which indicate the top five and bottom five customer/member segments. Each segment displays a bar which represents the net contribution amount.
- If the account holder segment has a positive net contribution, the bar is green.
- If the account holder segment has a negative net contribution, the bar is red.
Customer Segmentation Net Contribution and Balance by Deposit Products
The Customer Segmentation Net Contribution and Balance by Deposit Products page displays the following graphs:
- Net Contribution per Account Profitability Quintiles 1 and 5
- Balance per Account Profitability Quintiles 1 and 5
Net Contribution per Account Profitability Quintiles 1 and 5
The Net Contribution per Account Profitability Quintiles 1 and 5 graph illustrates the net contribution per deposit product for the top performing and bottom performing quintiles.
In this graph, the y-axis indicates the net contribution per account. The x-axis displays the name of each deposit product offered by the institution. For each product listed in the x-axis, two bars display.
- The blue bar represents the top performing quintile.
- The grey bar represents the lowest performing quintile.
To the right of the graph, the Profitability Analysis Presentation displays commentary on the customer segmentation net contribution.
Balance per Account Profitability Quintiles 1 and 5
The Net Contribution per Account Profitability Quintiles 1 and 5 graph illustrates the average balance per deposit product for the top performing and bottom performing quintiles.
In this graph, the y-axis indicates the average balance per account. The x-axis displays the name of each deposit product offered by the institution. For each product listed in the x-axis, two bars display.
- The blue bar represents the top performing quintile.
- The red bar represents the lowest performing quintile.
To the right of the graph, the Profitability Analysis Presentation displays the observations that are derived by comparing the two graphs.
Customer Segmentation Net Contribution and Balance by Loan Products
The Customer Segmentation Net Contribution and Balance by Loan Products page displays the following graphs:
- Net Contribution per Account Profitability Quintiles 1 and 5
- Balance per Account Profitability Quintiles 1 and 5
Net Contribution per Account Profitability Quintiles 1 and 5
The Net Contribution per Account Profitability Quintiles 1 and 5 graph illustrates the net contribution per loan product for the top performing and bottom performing quintiles.
In this graph, the y-axis indicates the net contribution per account. The x-axis displays the name of each loan product offered by the institution. For each product listed in the x-axis, two bars display.
- The blue bar represents the top performing quintile.
- The grey bar represents the lowest performing quintile.
To the right of the graph, the Profitability Analysis Presentation displays the observations that are derived by comparing the two graphs.
Balance per Account Profitability Quintiles 1 and 5
The Net Contribution per Account Profitability Quintiles 1 and 5 graph illustrates the average balance per loan product for the top performing and bottom performing quintiles.
In this graph, the y-axis indicates the average balance per account. The x-axis displays the name of each loan product offered by the institution. For each product listed in the x-axis, two bars display.
- The blue bar represents the top performing quintile.
- The red bar represents the lowest performing quintile.