Pilgrim Bank : customer profitability
RSM 222 Group Assignment
(Winter 2014)
Pilgrim Bank (A): Customer Profitability
Pilgrim Bank (A) is a case that analyzes customer profitability in a retail banking setting.
It explores a business phenomenon common to the retail banking industry and, within this context, acquaints you with the types of managerial questions that can be made by data analysis. As a recently hired analyst, Alan Green (your group’s role) has data on a sample of customers and must make recommendations about whether the bank should charge fees or offer rebates for use of the online channel. The data consist of customer-level information on demographics, online channel use, and profitability. The dataset is now available for downloading on our course blackboard website. The first worksheet is
“Definition of Variables” and the second worksheet is the dataset.
Link to purchase Pilgrim Bank Case: https://cb.hbsp.harvard.edu:443/cbmp/access/25928453 Requirements:
Write a business report summarizing your analysis and findings. The report should include the answers to the following assigned questions, which are useful when Alan
Green (or your group) meets with Ravi Raman next Monday morning. Remember to support/justify your answers.
1. How do retail banks make money from their customers? How much variation is there in profit across customers? Based on this, what do you recommend the bank do in terms of matching service levels to customer profit levels?
2. Based on the sample of customer data for 1999, what can you conclude about average customer profitability for pilgrim Bank’s entire customer population?
3. Is the difference in average profitability between online and offline customers in the sample indicative of a meaningful difference in probability across these groups for
Pilgrim Bank’s entire customer population?
4. What role does customer demographics play in analyzing customer profitability for online and offline customers?
1
5. What is your
(Winter 2014)
Pilgrim Bank (A): Customer Profitability
Pilgrim Bank (A) is a case that analyzes customer profitability in a retail banking setting.
It explores a business phenomenon common to the retail banking industry and, within this context, acquaints you with the types of managerial questions that can be made by data analysis. As a recently hired analyst, Alan Green (your group’s role) has data on a sample of customers and must make recommendations about whether the bank should charge fees or offer rebates for use of the online channel. The data consist of customer-level information on demographics, online channel use, and profitability. The dataset is now available for downloading on our course blackboard website. The first worksheet is
“Definition of Variables” and the second worksheet is the dataset.
Link to purchase Pilgrim Bank Case: https://cb.hbsp.harvard.edu:443/cbmp/access/25928453 Requirements:
Write a business report summarizing your analysis and findings. The report should include the answers to the following assigned questions, which are useful when Alan
Green (or your group) meets with Ravi Raman next Monday morning. Remember to support/justify your answers.
1. How do retail banks make money from their customers? How much variation is there in profit across customers? Based on this, what do you recommend the bank do in terms of matching service levels to customer profit levels?
2. Based on the sample of customer data for 1999, what can you conclude about average customer profitability for pilgrim Bank’s entire customer population?
3. Is the difference in average profitability between online and offline customers in the sample indicative of a meaningful difference in probability across these groups for
Pilgrim Bank’s entire customer population?
4. What role does customer demographics play in analyzing customer profitability for online and offline customers?
1
5. What is your