Infinity Bank (A)
Author: Vaysman, Igor ; Smyth, StephenINSEAD Area: Accounting and ControlPublisher: Fontainebleau : INSEAD, 2006.Language: EnglishDescription: 12 p.Type of document: INSEAD CaseNote: Latest version available via https://publishing.insead.eduAbstract: A retail bank is considering a strategy to improve branch performance. Central to the strategy is a recent study of profitability of three retail products: current accounts, credit cards, and mortgages. The strategy involves giving branch managers incentives to sell profitable products. A senior bank manager evaluates the product-profitability-based strategy in the light of recent statistics on major variations in profitability of customers (these statistics are included in the database provided with the case).Pedagogical Objectives: The case aims: 1. To illustrate the dangers of product-focused strategies that ignore customer value. 2. To demonstrate need for customer-profitability analysis. 3. To consider the difference between average customers and marginal customers. 4. To illustrate the sources of variations in customer profitability. 5. To discuss the actions to manage customer portfolios. 6. To show that customer-profitability analysis can serve as an excellent communication tool.| Item type | Current location | Collection | Call number | Status | Date due | Barcode | Item holds |
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Asia Campus Archives | Consultation only | BC007502 | ||||
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Europe Campus INSEAD Publications Display | Consultation only | BC007501 |
Latest version available via <a href=https://publishing.insead.edu>https://publishing.insead.edu</a>
The case aims:
1. To illustrate the dangers of product-focused strategies that ignore customer value.
2. To demonstrate need for customer-profitability analysis.
3. To consider the difference between average customers and marginal customers.
4. To illustrate the sources of variations in customer profitability.
5. To discuss the actions to manage customer portfolios.
6. To show that customer-profitability analysis can serve as an excellent communication tool.
A retail bank is considering a strategy to improve branch performance. Central to the strategy is a recent study of profitability of three retail products: current accounts, credit cards, and mortgages. The strategy involves giving branch managers incentives to sell profitable products. A senior bank manager evaluates the product-profitability-based strategy in the light of recent statistics on major variations in profitability of customers (these statistics are included in the database provided with the case).
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