Businesses often base their profitability calculations on averages and assumptions derived from the financial systems of record, mostly general ledgers. Doing so often leads to failure as they are not accurately assessing what is driving the bottom-line value of their customers, products, services, or channels. And, then they are left with a picture of revenue and expenses that is totally out of line.

For example, prior to implementing Teradata, RBC - formerly Royal Bank of Canada - conducted analysis using sophisticated in-house designed methodologies. They classified customers with a system of deciles. However, after implementing Teradata Value Analyzer, officials at RBC found that nearly 75% of these same customers were in the wrong decile - and that most customer needed to shift by one or even two deciles. After the shift, RBC was more prepared to use customer information to make decisions about where to invest marketing dollars, how to develop new pricing strategies, and how to determine what were the best opportunities and greatest challenges.

Total account analysis factors for Teradata Value Analyzer profitability intelligence includes operational revenue, net interest revenue, direct expense, indirect expense, risk provision, capital, and allocated balances. Teradata can show you how to build a better business by convering a combination of your customer data and your business methodology into profitability intelligence - just as it did with RBC.