Doing back of the envelope calculations can help you make quick assessments and build your intuition. But as a community FI, approaching your market as a group of averages can lead you down a path of mediocrity and eventual decline.
There is no average customer. And making average offers and services leads to bland, undifferentiated experiences that no one loves.
Average is a trap.
Typical is better. Typical implies intent. You can describe what typical wants. There are definable characteristics to typical.
But you also need to drill down to understand the breadth of your market. You serve a lot of people in your local community. They all aren’t the same kind of typical.
Other than the zip code they live/work in, what else do they have in common? What differentiates the high NPS, “can’t live without you” fans, who come to you first for all of their financial needs? How do they stand out from your “average” customer? How do they stand out from the drive-by’s that just use a teaser rate product but do their major banking elsewhere?
And the billion $ question, what do you know that can predict that behavior? Answering this can give you a roadmap to drive your agenda, whether acquiring new customers or getting more of your existing customers’ financial wallet share.