The Financial Brand Insights - Fall 2022

future staffing and operational requirements of any of our branches or main office? • How large of a branch do I need and what type of branch — microbranch, small footprint or a full-service facility — will a particular Trade Area support? • What is the optimal way to position the branch to maximize exposure to the community and convenience for existing and potential customers/members? • How many branches can a Market support? • How many branches should I have in a Market and where should they be positioned? • Does our current branch network maximize our profitability? If not, should a branch be closed, relocated or renovated?

• Are there underserved areas within the Market that we should enter? One of the first steps is to complete a thorough examination and analysis of your customers/ members, specifically as to their characteristics, product usage, behaviors and purchasing patterns along with their overall profitability. Once Redmond understands the demographic and psychographic characteristics of your ideal and most profitable customers/members today and in the future, we use this information to start evaluating your branch network and/or to determine the optimal branch deployment strategy in any particular Trade Area. (Figure 3) As the process continues, Redmond determines which sites best meet your unique business objectives. The site recommendations are based on almost 50 years of experience and advanced software tools along with Redmond’s proprietary Variable Weighted Matrix. This matrix is unique to every client based upon their specific business model and growth objectives, allowing many variables to be evaluated and ranked to determine which Trade Areas and sites will provide the highest return on investment. Client Success When we compare the performance of Redmond’s clients to their peer groups, the story

is very telling. Redmond’s clients have improved their ROA by up to 42% and their customer/ member growth is twice the rate of their peers. In addition, Redmond’s clients on average capture a rate of 23% of their Market as opposed to their peers who capture 13%. Redmond has been asked why a design/build firm would develop an analytical program that goes to this level of detail. The answer is simple: It helps our clients succeed. Analyzing your branch network and/or finding the optimal Trade Areas, Area of Influences, and Sites to fuel growth is an issue faced by financial institutions. You need a strategic, experienced partner with the knowledge to help you make data-driven decisions that not only meet your strategic objectives but maximize profitability. ▪ About Redmond The Redmond Company is a Design/Build Partner for providing expert assistance in Prescriptive Consumer Data Analytics, Market Analysis, Trade Area Analysis, Branch Deployment Studies, Site Identification and Acquisition, Brand Integration, Architecture and Construction. Redmond’s award-winning team can help increase the profitability of your branches, improve employee productivity, and enhance customer/ member experiences. To learn more, visit www. TheRedmondCo.com

Understanding Your Strategic Business Objectives Financial institutions look for answers to these questions: • What are the demographic and psychographic characteristics of my most profitable customers/members? • In what Trade Areas do our most profitable customers/members reside? • Based on the business model of the bank/credit union and customer/member characteristics, what Trade Areas offer the greatest financial potential and why? • Based on our strategic business plan, growth objectives and efficiency levels, what are the

Figure 3

Finding which Tapestry Segments are most profitable along with Market capture and Market potential.

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THE FINANCIAL BRAND INSIGHTS FALL 2022

THE FINANCIAL BRAND INSIGHTS FALL 2022

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