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Customer Information Management

Setting brach specific targets helps Central Bancompany achieve double digit growth

Client profile

Based in Jefferson city, Missouri, Central Bancompany manages approximately $9 billion in assets and has approximately 2,700 employees.

A full-service financial institution named to both the ABA Top 25 list and Forbes top 10 in the nation.

The highly decentralized organization operates under 13 different bank charters with 124 branches and 175 ATMs in Missouri, Kansas, Illinois and Oklahoma.

Business challenge

Set more targeted performance sales goals across 13 diverse banks with varied sales cultures.

Relyed only on historical sales data to determine future growth plans.

Benefits

In the first year, the bank achieved sales growth within 93% of the goal set for checking accounts.

The following year, the bank further increased its performance, scoring 100% on the plan. The result was double-digit overall growth, with about a 50% increase in total retail product sales.

Technology used

Perform.360

Use Perform 360 for benchmarking branch network performance against the actual performance of other bank branches.

Learn more

Overview

Building data-driven sales goals.

Central Bancompany is a full-service financial institution recently named to both the ABA Top 25 List and Forbes Top 10 in the nation. It is highly decentralized, with branches in metro areas and community markets. Member banks operate somewhat independently, giving them the flexibility to respond well to local conditions. For example, a bank can react quickly to a new competitor. On the other hand, this decentralized structure presents a challenge when it comes to performance goal setting across 13 diverse banks with varied sales cultures.

Business challenge

"The Pitney Bowes solution allows us to take an objective and scientific approach to our goal setting process." Kelly Loring
Vice President, Retail Sales Manager

Given the unique internal sales cultures and external market environments of all of its banks, Central Bancompany saw an opportunity to set more targeted performance goals. However, the bank experienced disadvantages when relying only on historical sales to determine future growth plans. Allocating goals based on historical performance tends to punish high-performing branches whose sales are affected by outside forces beyond their control. The same concept holds true for poor performers who are rewarded for performance that is lower than what it can be.

Solution

"We can look at the opportunity available in each market and set sales goals based on the true potential that exists both within the market area and within the customer base" Kelly Loring
Vice President and Retail Sales Manager

To take better advantage of the sales opportunity available in each of the markets it serves, the bank engaged with Pitney Bowes for its consulting services and Perform.360 software for benchmarking performance and quantifying branch potential. Central Bancompany uses Perform.360 primarily to set sales goals for personal and business checking accounts.  In turn, the checking account data is used to help set companion product goals for debit cards, e-statements, and the like.

“Pitney Bowes software allows us to take an objective and scientific approach to our goal-setting process,” said Kelly Loring, Vice President and Retail Sales Manager. “We can look at the opportunity available in each market and set sales goals based on the true potential that exists both within the market area and within the customer base.”

Pitney Bowes consultants evaluated Central Bancompany’s branch environments, micro markets and customer data to group branches into peer segments for comparison of performance without the biases of extraneous, uncontrollable environmental factors. The model was used to establish baseline performance expectations with the ability to rationally assign goals based on profitability, attainment cost and risk of failing.

“Perform.360 was very easy to implement,” said Loring, crediting her account management team at Pitney Bowes for first-rate support that facilitated a seamless deployment. “The Pitney Bowes experts combed through our data and did the legwork to geocode this data and populate the module."

Benefits

In the first year, the bank achieved sales growth within 93 percent of the goal set by Perform.360 for checking accounts. The following year, the bank further increased its performance, scoring 100 percent on the plan. The result was double-digit overall growth, with about a 50 percent increase in total retail product sales. 

In addition, using Perform.360, Central Bancompany challenged those branches that weren’t performing to their potential and focused marketing efforts in areas with higher opportunity. As a result, checking account sales during the bank’s annual summer checking campaign increased 48 percent, when compared to the baseline.