This study examines the use of databases to improve marketing techniques andcustomer segmentation in lending institutions. Specifically, this study examines the useof products and services by agricultural customers, and then determines the relationshipbetween the use of those products and services with farm business characteristics.Information is also obtained on the interest rate sensitivity of the producers and correlatedwith farm business characteristics. The importance of technology and strategic alliancesand other influences in the decision making process are determined after survey analysis.The survey was sent to producers who had some type of loan. Respondents fromthis study used an average of 3.2 loan products and 7.6 services for a total of 10.8 loansand services. Only 1 percent of the respondents indicated that they did not have apersonal checking account. Twelve percent of the respondents indicated that they did notuse a credit card. Only 16 percent of the respondents indicated that they used leasingservices. Investment products did not have a high percentage of use. Thirty-three percentindicated they were using certificates of deposit, while only 21 percent indicated the useof money market funds, and 30 percent indicated the use of mutual funds. Thirty-sevenpercent indicated they were using IRAs. However, most of the respondents were usingsome form of insurance. Three-fourths of the respondents were using life insurance,while only 21 percent indicated that they did not possess disability insurance. Otherservices were also analyzed in this study. Only 15 percent of the respondents indicatedthat they were utilizing estate planning services, despite the 67 percent of respondentswho were greater than age 41 and the 58 percent of respondents with greater than$500,000 in assets. Seventeen percent of the respondents were using an appraisal service.Due to the lower levels of usage for the investment products, this study focusedon the relationship between farm characteristics and the investment products. This studyshowed that a relationship existed between farm and non-farm income with IRA usage. iiiOnly farm income had a relationship with money market fund usage and mutual fundusage. While, the use of estate plans was related to asset level.The analysis on interest rate sensitivity was determined by the amount an interestrate would have to decrease for a producer to switch lending institutions. The producerswho were found to be less interest rate sensitive were those who had lower farm and non-farmincomes, lower asset levels, lower education levels, higher debt-to-asset ratio, andthose who owned a computer. This implies that these are the more loyal customers to aninstitution or perhaps these producers have fewer opportunities to switch institutions.Producers in this study indicated that when selecting a lender/service provider, acompetitive interest rate (76 percent of respondents) and the institution being adependable source of credit (75 percent) was important. Knowledge of agriculture wasalso very important (69 percent of respondents). Internet banking and educationalseminars rated as the characteristics that were least important, 3 percent and 9 percent,respectively. However, in the decision making process, lenders (69 percent ofrespondents), accountants (53 percent), and veterinarians (38 percent) were shown to bevery important. The spouse/partner has considerable influence also on decision making.Sixty-seven percent of the respondents indicated that the spouse/partner had aconsiderable influence on investment decision, while sixty-one percent of the respondentsindicated that the spouse/partner had a considerable influence on credit decisions.Five specific recommendations were made to the institutions following this study.These recommendations include: use of technology, institutional use of databases, use ofinfluencers, and targeting and segmenting the marketplace.