Integrating Customer Profitability Analysis into Retail Banking Strategic Planning: A Case Study of Bank Syariah Indonesia in Makassar

Digital transformation has increased the strategic relevance of customer-level financial information in retail banking, although its managerial application within Islamic banking remains insufficiently understood. This study examined how Customer Profitability Analysis (CPA) was interpreted and incorporated into strategic planning at Bank Syariah Indonesia, Makassar Area. A qualitative case study employed an in-depth, semi-structured interview with the Retail and Transaction Business Manager, supported by corporate reports and institutional documents. Thematic analysis identified three interrelated dimensions: the construction of customer profitability, its application to relationship management, and adaptation to local and Sharia-related considerations. Profitability assessments encompassed account balances, fee-based income, digital transactions, financing characteristics, collectibility risks, and service costs. These considerations informed customer segmentation, differentiated services, retention, cross-selling, up-selling, and marketing resource allocation. Managerial interpretations also reflected local interest in gold-related banking products and the financing needs of micro, small, and medium enterprises, alongside principles of justice and public benefit. CPA consequently functioned as a context-sensitive decision-support framework rather than a verified calculation of customer-level net profitability. Evidence from one managerial informant and secondary documents limits transferability and prevents claims of measured financial improvement. The findings clarify how accounting information can inform strategic choices while accommodating financial inclusion objectives within local markets.