Citi International Personal Bank: The IDM Business Performance Awards 2009: Award winner campaign: Minimum relationship balance

Abstract

This campaign demonstrates a core direct marketing principle. Citi International Personal Bank's Minimum Relationship Balance campaign acted on Pareto's principle to produce positive results in terms of both revenue and service delivery. The Bank conducted research on its client database and found that 60 per cent of its client base was contributing 96 per cent of its revenue; its problem was what to do with the remaining 40 per cent who were contributing only 4 per cent of revenue. One of the key issues for the Bank was that its less profitable clients were receiving the same top quality, and therefore expensive to the Bank, individual personal service as high-value clients. Addressing this issue meant that Citi International Personal Bank had to make some tough decisions about how to handle its less profitable client segments. The Minimum Relationship Balance campaign enabled the Bank to carefully divest itself of its unprofitable clients while maintaining its revenue. By aligning its client base, service proposition, acquisition target audience and brand, this campaign played a pivotal role in Citi International Personal Bank's long-term business strategy by creating a firm foundation for profitable growth in the future.