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An interesting phenomenon was recently identified with Journey analytics, we labeled it the “U shaped effect” with respect to the correlation between customer profitability and average number of  products.

Bottom line, it is important to know which customers are profitable regardless of the number of products.  As the chart displays, a substantial portion of the customer base is unprofitable with above average number of products.  As these unprofitable customers add more products they in fact become even more unprofitable!

The largest single segment of bank customers with respect to profitability reside in the middle part of the chart.  These customers have the fewest number of products, are slightly unprofitable and represent a significant opportunity.

Identifying the profitable customers with above average number of accounts is critical.  These customers generate over 100% of the institution’s profit.