Micromarket Optimization
Customization & Alignment of Data-Driven Tools.
Branch Connectivity
In a branch network, customers rarely use a single site for their ‘banking’ needs. Rather, they use the one that is the most convenient for that day’s needs. Over the course of a month or two, it is not uncommon to have customers use 2-3 branches and if you operate a remote ATM network, another ATM site or two.
This analysis makes those customer-driven connections, to better understand which branches are connected. These insights are especially critical in any optimization efforts as they indicate likely customer behaviors following branch or ATM changes. These connections also drive the hub-and-spoke formation that serves as an input to Micromarket boundaries and dictations branch format.
Target Segmentation
Market or customer segmentation has been around for a long time within the financial services industry. From psychographic, behavioral, or classic demographic segmentation, systems can provide insights into whether your organization is more attractive to certain population sectors.
The benefit of targeting select portions of the local population includes potentially higher sales levels, faster customer acquisition, and ultimately higher branch profitability. However, having a too narrowly defined target population or a poorly defined one (i.e., hard to find) can create implementation issue. If you have an existing segmentation system or target population, or want to create one, TerraStrat can help.
Greenfield & Brownfield Assessment
The concepts of “Greenfield” and “Brownfield” market analyses are often misunderstood.
A “Greenfield” plan is typically used when entering a new market. Think of it as starting with a blank slate. Your firm has no branches and a limited customer base, so this analysis is free from worrying about existing positioning. A Greenfield approach can also be used in existing markets to allow you to determine how well your existing branch network aligns to a more optimal network.
A “Brownfield” analytical approach considers your existing distribution and customer base, as they reduce total market demand for your services. In Brownfield, the goal is to leverage the existing network and base as a starting point for growth.
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