PILGRIM BANK (A):

Customer Profitability

GROUP:18
• PREETI (MBA19249)
• MD ARMAAN (MBA19250)
• VAISHNAVI C (MBA19241)
• VISHESH JAIN (MBA19242)
• PRATEEK PANDEY (MBA19265)
• RISHABH GOYAL (MBA19270)
 Explore Profits

 Main Sources of Profit  Bank’s Focus should be on the customers which are already
 Investment Income from deposit balance profitable to generate greater margins and retain them.
 Fee Income  Provide incentives to retain major profit churners
 Loan income  Do a demographic analysis to understand the profit ration of
customers
 base lending
 Average profitability is $111.5 per customer
 Standard Deviation - $272.84 : It means that there are many customers
which are not profitable.
 10% customers generating 70% of the total profit
Online VS Offline Profits

Online Offline Online V/S Offline Users

100%
0.88 110.79 2922529.41
 Low cost per  Face to Face connect 80%
transaction 60%
 Possibility of upselling
 Higher number of 40% 116.67
or cross selling
Transactions 20%
 Lower number of 0.12 422462.07
 No economies of scale 0%
Customers Ratio Average Total Customer
transactions Customers Profitability
Profitability
 Higher cost per
transaction Online Offline
Missing Data

To further improve upon the analysis following data points are needed-
 Number of branches of the bank
 Percentage of Online V/s Offline users
 The products offered by bank which can be sold via cross selling or upselling
 Market Share of the bank
 Customer cost for the bank
 Detailed research methodology with both concepts and constructs
Thank You