5 Things that Make your Bank Customer Price Sensitive

     

Here are some key findings on a borrower’s willingness to pay for a loan/mortgage:

5 Things to Make Your Bank Customer Price Sensitive

Learn more about price optimization.

Source: Robert Phillips is the author of the book "Pricing and Revenue Optimization," a textbook in revenue management and pricing optimization tactics. Here is a Wiki on Robert Phillips. https://en.wikipedia.org/wiki/Robert_L._Phillips

Low-risk customers are ​more price sensitive; riskier borrowers are​ usually willing to pay ​more​

Low-risk customers are more price sensitive; riskier borrowers are usually willing to pay more

Learn more about price optimization.

Source: Robert Phillips is the author of the book "Pricing and Revenue Optimization," a textbook in revenue management and pricing optimization tactics. Here is a Wiki on Robert Phillips. https://en.wikipedia.org/wiki/Robert_L._Phillips

Borrowers looking for larger loans are ​more price sensitive

Borrowers looking for larger loans are more price sensitive

Learn more about price optimization.

Source: Robert Phillips is the author of the book "Pricing and Revenue Optimization," a textbook in revenue management and pricing optimization tactics. Here is a Wiki on Robert Phillips. https://en.wikipedia.org/wiki/Robert_L._Phillips

Borrowers looking for longer-term loans are ​more price sensitive

Borrowers looking for longer-term loans are more price sensitive

Learn more about price optimization.

Source: Robert Phillips is the author of the book "Pricing and Revenue Optimization," a textbook in revenue management and pricing optimization tactics. Here is a Wiki on Robert Phillips. https://en.wikipedia.org/wiki/Robert_L._Phillips

Borrowers approached through the Internet are more price sensitive compared to those approached via other channels

Borrowers approached through the Internet are more price sensitive compared to those approached via other channels

Learn more about price optimization.

Source: Robert Phillips is the author of the book "Pricing and Revenue Optimization," a textbook in revenue management and pricing optimization tactics. Here is a Wiki on Robert Phillips. https://en.wikipedia.org/wiki/Robert_L._Phillips

Customers with a longer relationship with a lender or who have more products with the lender are ​ less price sensitive and generally willing to pay more

Customers with a longer relationship with a lender or who have more products with the lender are  less price sensitive and generally willing to pay more

Learn more about price optimization.

Source: Robert Phillips is the author of the book "Pricing and Revenue Optimization," a textbook in revenue management and pricing optimization tactics. Here is a Wiki on Robert Phillips. https://en.wikipedia.org/wiki/Robert_L._Phillips

About The Author

Ken is our CMO at Nomis Solutions.