Retail Banking Customer Profitability & Lifetime Value

Clearwater Retail Bank • Q3 2024 • 1.24M Active Customers

Portfolio Net Revenue: £312M
Top Decile Profit: £267M
Bottom 40% Erosion: -£41M
Avg RARPC
£218
+£14 YoY
CLTV Index (Direct)
100
+6 pts
Avg Product Depth
2.8
+0.3 YoY
Digital Engagement
58.4
+6.1 pts
Avg Cost-to-Serve
£94
-£9 proj.
Portfolio NPS
+42
+5 pts

RARPC by Customer Decile — Waterfall View

CLTV Accumulation by Acquisition Cohort

Product Relationship Depth Distribution

Product Depth vs. Attrition Rate

Digital Engagement Impact on Cost-to-Serve

Customer Segment Profitability Matrix

Segment Customers RARPC CLTV Index Product Depth Attrition % Cost-to-Serve NPS
Premium (Top 10%) 124k £642 148 5.2 4.1% £127 +68
Affluent (D2) 124k £384 122 4.1 5.8% £108 +54
Engaged (D3) 124k £267 108 3.6 7.2% £96 +47
Core (D4-D5) 248k £189 94 2.9 9.4% £88 +38
Transactional (D6) 124k £124 81 2.2 12.1% £82 +29
Low-Touch (D7) 124k £72 68 1.8 15.6% £76 +18
Marginal (D8) 124k £31 52 1.4 19.8% £94 +12
Dormant (D9) 124k -£18 34 1.1 26.4% £102 -4
Unprofitable (D10) 124k -£64 19 1.0 34.7% £118 -18

NPS vs. RARPC Correlation

Acquisition Channel LTV Index

Cost-to-Serve by Segment

Cohort Revenue Retention Heatmap (%)

Y0
Y1
Y2
Y3
Y4
Y5
Y6
2018
100
94
89
86
83
81
79
2019
100
93
88
84
82
79
—
2020
100
92
86
82
80
—
—
2021
100
89
81
77
—
—
—
2022
100
85
76
—
—
—
—
2023
100
82
—
—
—
—
—
2024
100
—
—
—
—
—
—

Net Revenue by Product

Total Retail Customers
1.24M
Active accounts
Portfolio RARPC Uplift Potential
+£37
If bottom 40% → breakeven
Aggregator Channel LTV Gap
-31 pts
vs. Direct Digital (index 69)