(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
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Pilgrim Bank Case ‐ Group 5‚ Section D The 95 percent confidence interval is (Z = 1.96) (n =31634) (σ = 272.84) 108.496 < Population Mean < 114.5094 The variation of the mean is not very large (+-3.01)‚ so sample mean can be assumed to be representative of population mean. Number of offline users: 27781‚ x1 = 110.79‚ σ1 = 271.301 Number of online users: 3853‚ x2 = 116.67 σ2 = 283.66 Z = (x1-x2)-(µ1-µ2)/Sqrt(σ12/n1+σ22/n2) Null Hypothesis: µ1= µ2 Alternative Hypothesis: µ1 =! µ2 Z = -1.212 and Z-critical
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customer’s profitability to provide relevant information for Internet strategy in Pilgrim Bank. To get a conclusion from the disagreements between charging online banking fees and offering customers incentives to use online banking‚ I obtained relevant data and compared online and offline customers’ profitability. Since only comparing balance level will miss some important information‚ such as‚ the cost of serving individual customers‚ therefore‚ in my analysis‚ I primarily focus on profitability. To
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Mel Lazo ISDS 7540 – Marketing Analytics Module Dr. Black 7 December 2012 Pilgrim Bank Case Analysis Introduction and Defining the Relationships The business analyst at Pilgrim Bank‚ Alan Green‚ was tasked with guiding the marketing team to a better understanding of customer profitability. With the help of his supervisor and the IT department‚ he has access to an extensive data set of over 30‚000 customers‚ both old and new. Included are continuous variables for Profit‚ Tenure‚ and Satisfaction
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profitable for Pilgrim Bank than offering incentives to promote wider use of the online channel. To begin solving the problem‚ Mr. Green first must address the following research issues: how much more/less profit do online users generate; is this difference significant‚ what are the measures of customer profitability‚ what are the characteristic of the bank’s online users and profitable customers‚ what are the costs of operating the online banking channel‚ and finally what measures does the bank take to
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Pilgrim Bank Case September 26‚ 2013 How much do profits vary across customers? Provide statistical support for your answer. Out of a sample of 31‚634 Pilgrim Bank customers‚ from a population of 5 million total‚ and zero missing values‚ profits vary widely. The average customer profitability is $111.50. The minimum value of this data set is -$221 and the maximum is $2071. This describes that there is a very wide range. The median customer profitability is $9 and the standard deviation is $272.84
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CUSTOMER PROFITABILITY ANALYSIS: CHALLENGES AND NEW DIRECTIONS Summary This article presents the concept of modifying cost accounting system in order to provide measurements from a customer profitability viewpoint. Most management accounting systems focus on products‚ departments or geographical areas‚ which have little to do with customers. A questionnaire was sent to marketing managers and marketing controllers and interviews with respondents. Much of this article draws on qualitative responses
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Question Perform relevant analysis to help Alan Green prepare for the meeting to be held on Monday Give null and alternate hypothesis wherever required clearly state results and interpretations. T-Test Group Statistics 9Online N Mean Std. Deviation Std. Error Mean 9Profit 1 3854 116.67 283.665 4.569 0 27780 110.79 271.301 1.628 Independent Samples Test Levene’s Test for Equality of Variances t-test for Equality of Means 95% Confidence Interval
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A customer profitability analysis is an evaluation process that focuses on assigning costs and revenues to segments of the customer base‚ instead of assigning revenues and costs to the actual products‚ or the units or departments that compose the corporate structure of the producer. Approaching profitability from this angle can sometimes provide valuable insights into how each step of the process of designing‚ manufacturing‚ and ultimately selling a good or service incurs cost and generates revenue
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Topic Gateway Series Customer profitability analysis Customer profitability analysis Topic Gateway Series No. 55 1 Prepared by Jasmin Harvey and Technical Information Service January 2009 Topic Gateway Series Customer profitability analysis About Topic Gateways Topic Gateways are intended as a refresher or introduction to topics of interest to CIMA members. They include a basic definition‚ a brief overview and a fuller explanation of practical application. Finally they
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