RPM Consulting, LLCDecile Report

The Variable Percentile or Decile Report breaks a service category into 10 equal portions or deciles, and associates business activity with each decile. This is the approach that led to the famous "80-20" rule, that approximately 20% of your customers drive 80% of your business. The value for many institutions lies in identifying that 20%, adding value for them, and earning their loyalty.

Many institutions use the Decile Report to establish relationship with CD customers whom they rarely see - providing each branch manager with a list of their Top 100 CD households for retention and development, a list that always includes surprises.

The Decile approach can also be used in reverse, to isolate a relatively large number of households who are not responsible for very much business at all. In the example below, we have used the MCIF to address one of the more significant issues that credit unions face -- single service, Share Only households. Banks face a similar issue with single service, low balance Checking accounts.

The 19,300 households in the sample report represent about 37% of the household base of the sample credit union. However, the top 10% of these households are responsible for $15.342 million or over 71% of all the Share dollars in these single service households. Each has about $2,500 or more in Shares, and each is a prime prospect for additional business.

Conversely, most of these 19,300 households are "non-member members", people who are essentially members in name alone, because they do not do very much business with the credit union at all. The bottom 6 deciles, or lower 60% of these households, are largely under the $250 balance level and about half are under $100. It can be very expensive to carry these households on the system, and a good many are probably dormant and can be addressed as such.

Customer Insight MCIF Decile Report