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  • Bankinter Customer Profitability

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    Dilki
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    1. The document analyzes the expected profitability of customers by channel of entry, including 8700, Alliances, and E-Collaborators channels. 2. It calculates the expected cash flows, present values, and cumulative present values for profitable and unprofitable customer cohorts over a 3 year period for each channel. 3. Based on the analyses, the Weighted Profitability table shows the Profitable/Unprofitable value ratios and expected profitability for each channel, with 8700 having the highest expected profitability of $332,586.

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    1. The document analyzes the expected profitability of customers by channel of entry, including 8700, Alliances, and E-Collaborators channels. 2. It calculates the expected cash flows, present values, and cumulative present values for profitable and unprofitable customer cohorts over a 3 year period for each channel. 3. Based on the analyses, the Weighted Profitability table shows the Profitable/Unprofitable value ratios and expected profitability for each channel, with 8700 having the highest expected profitability of $332,586.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xls, pdf, or txt
    8 views1 page

    Bankinter Customer Profitability

    Uploaded by

    Dilki
    1. The document analyzes the expected profitability of customers by channel of entry, including 8700, Alliances, and E-Collaborators channels. 2. It calculates the expected cash flows, present values, and cumulative present values for profitable and unprofitable customer cohorts over a 3 year period for each channel. 3. Based on the analyses, the Weighted Profitability table shows the Profitable/Unprofitable value ratios and expected profitability for each channel, with 8700 having the highest expected profitability of $332,586.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xls, pdf, or txt
    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%

    8700
    attrition rate 14% attrition rate 28%
    PROFITABLE UNPROFITABLE
    Year 0 1 2 3 Res.Val. Year 0 1 2 3 Res.Val.
    Prob. Survival 100% 86% 75% 65% Prob. Survival 100% 72% 51% 37%
    CF if client -41 427 465 505 CF if client -494 -97 -27 -18
    Expected CF -41 369 347 326 1195 Expected CF -494 -70 -14 -7 -12
    PV factor 1.00 0.91 0.83 0.75 0.75 PV factor 1.00 0.91 0.83 0.75 0.75
    PV -41 335 287 245 898 PV -494 -63 -11 -5 -9
    Cumul. PV -41 294 581 826 1724 Cumul. PV -494 -557 -569 -574 -583

    ALLIANCES
    attrition rate 16% attrition rate 46%
    PROFITABLE UNPROFITABLE
    Year 0 1 2 3 Res.Val. Year 0 1 2 3 Res.Val.
    Prob. Survival 100% 84% 70% 59% Prob. Survival 100% 54% 29% 15%
    CF if client -123 379 410 466 CF if client -447 -142 -43 -43
    Expected CF -123 317 288 274 873 Expected CF -447 -76 -12 -7 -6
    PV factor 1.00 0.91 0.83 0.75 0.75 PV factor 1.00 0.91 0.83 0.75 0.75
    PV -123 289 238 206 656 PV -447 -69 -10 -5 -5
    Cumul. PV -123 166 403 609 1264 Cumul. PV -447 -516 -527 -532 -536

    E-COLLABORATORS
    attrition rate 20% attrition rate 59%
    PROFITABLE UNPROFITABLE
    Year 0 1 2 3 Res.Val. Year 0 1 2 3 Res.Val.
    Prob. Survival 100% 80% 64% 51% Prob. Survival 100% 41% 17% 7%
    CF if client -100 319 367 398 CF if client -370 -97 -37 -37
    Expected CF -100 255 234 203 540 Expected CF -370 -40 -6 -3 -2
    PV factor 1.00 0.91 0.83 0.75 0.75 PV factor 1.00 0.91 0.83 0.75 0.75
    PV -100 231 194 153 406 PV -370 -36 -5 -2 -1
    Cumul. PV -100 131 325 478 883 Cumul. PV -370 -406 -412 -413 -415

    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 -67.51555
    e-Collaborators 2.53 883 0.2832861 -415 0.7167139 -46.89036

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