Customer segmentation: How to harness its profit building power

Financial institutions' customer acquisition strategies are taking a one-two punch as the economic turmoil shrinks both their customer base and marketing budgets. This changing economic outlook is testing the mettle of many banking industry professionals as they seek to attract and retain profitable customers and disengage with those that do not offer value under their operating model.

By building long-term relationships with the most valuable customer segments, companies can win over a loyal - and profitable - customer base. While each company's approach will be unique to their particular business needs, we have identified five steps that will help companies achieve the characteristics of a successful segmentation strategy.