"Banks have long used one-dimensional attributes like annual revenue to define, segment, and service their business customers. Particularly for SMBs, annual revenue is an unreliable indicator of customer payments needs and bank revenue opportunities. Private company revenues are notoriously difficult to assess and update, and even if accurate, there's little correlation between revenue and payments-related need," said BC Krishna, President and CEO of MineralTree. "As a result, banks underserve their all-important SMB customers, overlook revenue opportunities, and leave themselves vulnerable to non-bank solution providers."

Analytics Help Banks Understand, Segment and Reach SMB Customers

Using proprietary analytics and advanced data visualization, MineralTree MarketSphere transforms large volumes of bank-accessible customer and transactional data into actionable intelligence that can drive deeper SMB relationships and new income streams.

MineralTree MarketSphere enables banks to:

Identify the size of the SMB payments opportunity within the bank, and pinpoint the number of existing customers that would benefit from and pay for new payments products and services
Segment and target business customers based on important payment transaction information - volume, type, growth - in addition to more traditional segmentation data such as company vertical, size and revenue
Execute highly personalized sales and marketing campaigns to existing SMB customers, with compelling, customer-specific messages and value propositions
Source new prospects that match the profile of existing, revenue-generating customers

Banks Leverage Advanced Analytics to Identify Opportunities, Justify Investments and Drive Revenue

In recent analyses performed for several regional banks, MarketSphere found that, on average, 15-20% of a bank's high-value SMB customers make 80-90% of their payments by paper check, and unexpectedly, make almost no payments using Online Bill Pay oll Pay or ACH.

Using a variety of factors - payment volume, velocity, revenue, employees, age, and other factors - MarketSphere analytics assigned a unique score to each bank customer, and thus provided a more accurate understanding of the SMB payment opportunity and overall customer value.

The analysis also revealed that target businesses issue between 15 and 500 checks every month, spending considerable amounts of time and money annually on non-bank, paper payments products such as stamps, envelopes, and check-stock. Banks that engaged in the MarketSphere analysis now see a clear opportunity to capture that expenditure with lower-risk, more efficient bank-offered electronic payments products.

MarketSphere is available now to MineralTree bank partners, as well as to banks that would like to better understand their SMB customers, and the size and nature of the small business payments opportunity at their institutions.