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    Bankinter Customer Profitability

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    lifeee
    This document summarizes the expected profitability of customers by channel of entry over a 3 year period, with a 10% discount rate and varying attrition rates. It calculates the present value and cumulative present value of expected cash flows from profitable and unprofitable customers acquired through different channels: direct, alliances, and e-collaborators. Overall, it finds that direct customers have a higher weighted profitability than customers from alliances or e-collaborators.

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    Bankinter Customer Profitability

    Uploaded by

    lifeee
    229 views1 page
    This document summarizes the expected profitability of customers by channel of entry over a 3 year period, with a 10% discount rate and varying attrition rates. It calculates the present value and cumulative present value of expected cash flows from profitable and unprofitable customers acquired through different channels: direct, alliances, and e-collaborators. Overall, it finds that direct customers have a higher weighted profitability than customers from alliances or e-collaborators.

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    bankinter

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    This document summarizes the expected profitability of customers by channel of entry over a 3 year period, with a 10% discount rate and varying attrition rates. It calculates the present value and cumulative present value of expected cash flows from profitable and unprofitable customers acquired through different channels: direct, alliances, and e-collaborators. Overall, it finds that direct customers have a higher weighted profitability than customers from alliances or e-collaborators.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xls, pdf, or txt
    229 views1 page

    Bankinter Customer Profitability

    Uploaded by

    lifeee
    This document summarizes the expected profitability of customers by channel of entry over a 3 year period, with a 10% discount rate and varying attrition rates. It calculates the present value and cumulative present value of expected cash flows from profitable and unprofitable customers acquired through different channels: direct, alliances, and e-collaborators. Overall, it finds that direct customers have a higher weighted profitability than customers from alliances or e-collaborators.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
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    of 1

    EXPECTED PROFITABILITY OF CUSTOMERS BY CHANNEL OF ENTRY

    (Highligted in green are the cells that can be modified by the user)
    discount rate

    10%

    attrition rate

    14%

    8700
    PROFITABLE
    Year
    Prob. Survival
    CF if client
    Expected CF
    PV factor
    PV
    Cumul. PV

    0
    100%
    -41
    -41
    1.00
    -41
    -41

    1
    86%
    427
    369
    0.91
    335
    294

    2
    75%
    465
    347
    0.83
    287
    581

    3 Res.Val.
    65%
    505
    326
    1195
    0.75
    0.75
    245
    898
    826
    1724

    attrition rate
    UNPROFITABLE
    Year
    Prob. Survival
    CF if client
    Expected CF
    PV factor
    PV
    Cumul. PV

    0
    100%
    -494
    -494
    1.00
    -494
    -494

    1
    72%
    -97
    -70
    0.91
    -63
    -557

    28%
    2
    51%
    -27
    -14
    0.83
    -11
    -569

    3 Res.Val.
    37%
    -18
    -7
    -12
    0.75
    0.75
    -5
    -9
    -574
    -583

    ALLIANCES
    attrition rate
    PROFITABLE
    Year
    Prob. Survival
    CF if client
    Expected CF
    PV factor
    PV
    Cumul. PV

    0
    100%
    -123
    -123
    1.00
    -123
    -123

    1
    84%
    379
    317
    0.91
    289
    166

    16%
    2
    70%
    410
    288
    0.83
    238
    403

    3 Res.Val.
    59%
    466
    274
    873
    0.75
    0.75
    206
    656
    609
    1264

    attrition rate
    UNPROFITABLE
    Year
    Prob. Survival
    CF if client
    Expected CF
    PV factor
    PV
    Cumul. PV

    0
    100%
    -447
    -447
    1.00
    -447
    -447

    1
    54%
    -142
    -76
    0.91
    -69
    -516

    46%
    2
    29%
    -43
    -12
    0.83
    -10
    -527

    3 Res.Val.
    15%
    -43
    -7
    -6
    0.75
    0.75
    -5
    -5
    -532
    -536

    E-COLLABORATORS
    attrition rate
    PROFITABLE
    Year
    Prob. Survival
    CF if client
    Expected CF
    PV factor
    PV
    Cumul. PV

    0
    100%
    -100
    -100
    1.00
    -100
    -100

    1
    80%
    319
    255
    0.91
    231
    131

    20%
    2
    64%
    367
    234
    0.83
    194
    325

    3 Res.Val.
    51%
    398
    203
    540
    0.75
    0.75
    153
    406
    478
    883

    WEIGHTED PROFITABILITY
    Profitable
    Unprofitable
    Program
    Unpr:Prof Value
    Proportion Value
    Proportion Expected
    8700
    1.52
    1724 0.3968254
    -583 0.6031746 332.5863
    Alliances
    2.84
    1264 0.2604167
    -536 0.7395833 -67.5155
    e-Collaborators
    2.53
    883 0.2832861
    -415 0.7167139 -46.8904

    attrition rate
    UNPROFITABLE
    Year
    Prob. Survival
    CF if client
    Expected CF
    PV factor
    PV
    Cumul. PV

    0
    100%
    -370
    -370
    1.00
    -370
    -370

    1
    41%
    -97
    -40
    0.91
    -36
    -406

    59%
    2
    17%
    -37
    -6
    0.83
    -5
    -412

    3 Res.Val.
    7%
    -37
    -3
    -2
    0.75
    0.75
    -2
    -1
    -413
    -415

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