Scribd Logo
Upload

Welcome to Scribd!

  • 327 views

    Alpen Bank Analysis

    Uploaded by

    Siddharth Shetty
    This document analyzes different customer acquisition strategies for a target segment. It provides details on potential customer income levels, acquisition tools and their unit costs and prospects reached. It then performs revenue and cost analysis for acquiring middle, affluent and most affluent customers using different tools. It calculates the break even levels and number of customers needed to achieve a target return on investment. The analysis shows acquiring affluent customers only is more profitable than pursuing all income levels.

    Copyright:

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

    Alpen Bank Analysis

    Uploaded by

    Siddharth Shetty
    327 views14 pages
    This document analyzes different customer acquisition strategies for a target segment. It provides details on potential customer income levels, acquisition tools and their unit costs and prospects reached. It then performs revenue and cost analysis for acquiring middle, affluent and most affluent customers using different tools. It calculates the break even levels and number of customers needed to achieve a target return on investment. The analysis shows acquiring affluent customers only is more profitable than pursuing all income levels.

    Original Description:

    case analysis of Alfen bank

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document analyzes different customer acquisition strategies for a target segment. It provides details on potential customer income levels, acquisition tools and their unit costs and prospects reached. It then performs revenue and cost analysis for acquiring middle, affluent and most affluent customers using different tools. It calculates the break even levels and number of customers needed to achieve a target return on investment. The analysis shows acquiring affluent customers only is more profitable than pursuing all income levels.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    327 views14 pages

    Alpen Bank Analysis

    Uploaded by

    Siddharth Shetty
    This document analyzes different customer acquisition strategies for a target segment. It provides details on potential customer income levels, acquisition tools and their unit costs and prospects reached. It then performs revenue and cost analysis for acquiring middle, affluent and most affluent customers using different tools. It calculates the break even levels and number of customers needed to achieve a target return on investment. The analysis shows acquiring affluent customers only is more profitable than pursuing all income levels.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    You are on page 1of 14

    Target segment

    Annual Income

    Middle class
    Affluent
    Most affluent

    3000-4500
    4500-6000
    6000+

    Tools
    Direct Mail
    Take one
    FSI
    Direct sales
    Branch cross sell

    Tools

    Unit costs

    Prospects reached

    Direct Mail
    Take one
    FSI

    0.5
    0.1
    0.05

    2500000
    2000000
    3500000

    Direct sales
    Branch cross sell

    3000/rep
    1

    60000
    50000

    Tools

    Unit costs

    Prospects reached

    Direct Mail
    Take one
    FSI
    Direct sales
    Branch cross sell

    0.5
    0.1
    0.05
    3000/rep
    1

    1250000
    2000000
    3500000
    60000
    50000

    All channels
    Without direct mail

    All channels
    Without direct mail

    Number of customers
    Revenue
    Acquisition cost
    Direct cost
    New customers
    Existing customers
    Cost: New customer
    Cost:Existing customer

    Profitability: New customers


    Profitability: Existing customers
    Total profitability
    Less:
    Fixed cost: Infrastructure
    Advertising expense
    Net profit

    Break even level

    0 = 122.78(X+50000) -(5750000+2000000)-(50000*17.5+36.2*X)
    0 = 122.78(X+50000) -7750000 -875000 -36.2X
    2486000 = 86.58X
    28713

    Break even customers

    Existing + New
    78713.32871

    Number of customers needed to achieve ROI of 5 mn

    5000000 = 122.78(X+100000) -(6500000+2000000) -(15*100000+33.7


    5000000 = 122.78X + 12278000 - 8500000 - 1500000 - 33.7X
    5000000 = 122.78X + 4046000 -33.7X
    2722000 = 89.08X
    30557
    Total customers

    130556.8029

    Number of customers
    Revenue
    Acquisition cost
    Direct cost
    New customers
    Existing customers
    Cost: New customer
    Cost:Existing customer

    Profitability: New customers


    Profitability: Existing customers
    Total profitability
    Less:
    Fixed cost: Infrastructure
    Advertising expense
    Net profit
    Break even level

    0 = 163.31(X+50000) -(5750000+2000000)-(50000*17.5+35.81*X)
    0 = 163.31X +8165500 -7750000 -875000 -35.81X

    459500 = 127.5X
    3604
    Break even customers

    Existing + New
    53603.92157

    Number of customers needed to achieve ROI of 5 mn

    5000000 = 163.31(X+50000) -(5750000+2000000) -(50000*17.5 + 35.8


    5000000 = 163.31X + 8165500 - 7750000 - 875000 - 35.81X
    4540500 = 89.08X
    50971

    Total customers

    100971.0373

    REVENUE AND COST ANALYSIS

    % of potential card holders

    Potential card holders

    Interest revenue

    18.20%
    15%
    12.90%

    3385200
    2790000
    2399400

    37.13
    86.63
    148.5

    Total potential cardholders

    18600000

    Average revenue per cardholder

    122.7752928

    Average revenue per cardholder


    (affluent + most affluent)

    163.3145161

    (given in case)

    Unit costs

    Cost estimates (in euros)


    Prospects reached

    Response rate

    0.5
    0.1
    0.05
    3000/rep
    1

    2500000
    2000000
    3500000
    60000
    50000

    3%
    2.50%
    1.50%
    25%
    50%

    Conversion rate of customers

    85%

    (given in case)

    Sales representatives needed

    10

    (given in case)

    Response rate
    3%
    2.50%
    1.50%

    Customer acquisition costs (Middle and affluent)


    Qualification rate
    Conversion rate
    60%
    30%
    30%

    85%
    85%
    85%

    25%
    50%

    Response rate
    3%
    2.50%
    1.50%
    25%
    50%

    60%
    90%

    85%
    85%

    Customer acquisition costs (Affluent customers)


    Qualification rate
    Conversion rate
    60%
    15%
    15%
    60%
    90%

    85%
    85%
    85%
    85%
    85%

    Break even analysis (Middle and affluent customers)


    50000
    122.78
    18.7
    20
    50000
    0
    38.7
    0

    100000
    122.78
    18.7
    17.5
    50000
    50000
    36.2
    17.5

    150000
    122.78
    18.7
    15
    50000
    100000
    33.7
    15

    4204000
    0

    4329000
    5264000

    4454000
    10778000

    4204000

    9593000

    15232000

    5000000
    2000000

    5750000
    2000000

    6500000
    2000000

    -2796000

    1843000

    6732000

    X+50000) -(5750000+2000000)-(50000*17.5+36.2*X)
    X+50000) -7750000 -875000 -36.2X

    122.78(X+100000) -(6500000+2000000) -(15*100000+33.7X)


    122.78X + 12278000 - 8500000 - 1500000 - 33.7X
    122.78X + 4046000 -33.7X

    Break even analysis (Affluent customers only)


    50000
    163.31
    18.31
    20
    50000
    0
    38.31
    0

    100000
    163.31
    18.31
    17.5
    50000
    50000
    35.81
    17.5

    150000
    163.31
    18.31
    15
    50000
    100000
    33.31
    15

    6250000
    0

    6375000
    7290500

    6500000
    14831000

    6250000

    13665500

    21331000

    5000000
    2000000

    5750000
    2000000

    6500000
    2000000

    -750000

    5915500

    12831000

    X+50000) -(5750000+2000000)-(50000*17.5+35.81*X)
    +8165500 -7750000 -875000 -35.81X

    163.31(X+50000) -(5750000+2000000) -(50000*17.5 + 35.81X)


    163.31X + 8165500 - 7750000 - 875000 - 35.81X

    Other Revenue

    Annual revenue

    Total revenue

    23.5
    36.75
    61.25

    60.63
    123.38
    209.75

    205244676
    344230200
    503274150

    Potential card holders


    4000000
    3500000
    3000000
    2500000
    2000000
    1500000
    1000000
    500000

    Qualification rate

    0
    Middle class

    60%
    30%
    30%
    60%
    90%

    Affluent

    Effective hit rate

    Number of customers

    Total Cost

    1.53%
    0.64%
    0.38%

    38250
    12750
    13388

    1250000
    200000
    175000

    Most affluent

    12.75%
    38.25%

    7650
    19125

    30000
    50000

    91162.5
    52912.5

    1705000
    455000

    Effective hit rate

    Number of customers

    Total Cost

    1.53%
    0.32%
    0.19%
    12.75%
    38.25%

    19125
    6375
    6694
    7650
    19125

    625000
    200000
    175000
    30000
    50000

    58968.75
    39843.75

    1080000
    455000

    200000
    122.78
    18.7
    12.5
    50000
    150000
    31.2
    12.5

    4579000
    16542000
    21121000

    7250000
    2000000
    11871000

    (given in case, economies of scale)

    200000
    163.31
    18.31
    12.5
    50000
    150000
    30.81
    12.5

    6625000
    22621500
    29246500

    7250000
    2000000
    19996500

    card holders

    Potential card holders

    Most affluent

    Cost per customer


    32.68
    15.69
    13.07

    3.92
    2.61

    18.70
    8.60

    Cost per customer


    32.68
    31.37
    26.14
    3.92
    2.61

    18.31
    11.42

    You might also like

    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy