п»їCustomer Relationship Administration

Group assignment

GROUP 13:

Polyvios Dimiou 359386sd

Matina Kelaidi406889mk

Stamatina Sykara 416940ss

Natalie Blok333244ab

Question 1 .

Total population of Romania: 18. 600. 0000

Average Earnings per buyer

a)Most Affluent Part

b)Affluent & Most Affluent

c)All consumers

€ 209. 75

€ 163. 23

€ 122. 78

a. The most rich segment?

The estimated net total annual revenue for the most affluent part is €209. 75 every customer. m. The two the majority of affluent segments?

The estimated net annual income for the two most wealthy segments, measured by their amount of the total population, can be €163. 23 per consumer. c. Three segments into consideration (including the center Class segment)? The approximated net annual revenue for any segments into consideration, weighted by way of a proportion with the total human population, is €122. 78 every customer.

Problem 2

1) Three sectors; Middle Class, Affluent and many Affluent

Device Cost

Prospects Reached

Response Rate

Qualifica-tion Rate

Conver-

sion Price

Number of Consumers

Total Price

Costs every Customer

Volume of Customers/Prospects Come to

Direct Mail

€ 0, 40

2 . 500. 000

3%

60%

85%

38250

€ 1 . two hundred and fifty. 000

€ 32, sixty-eight

1, 53%

Take One

€ zero, 10

installment payments on your 000. 500

2, 50 percent

30%

85%

12750

€ 200. 1000

€ 12-15, 69

zero, 64%

FSIs

€ zero, 05

a few. 500. 1000

1, 50%

30%

85%

13387, a few

€ 175. 000

€ 13, '07

0, 38%

Direct Sales

3000/

rep

62. 000

25%

60%

85%

7650

€ 30. 1000

€ several, 92

doze, 75%

Department Cross-Sell

€ 1, 00

50. 500

50%

90%

85%

19125

€ 50. 000

€ 2, 61

38, 25%

All marketing channels

91162, 5

€ 1 . 705. 000

€ 18, 70**

Chosen marketing channels*

26775

€ 70. 000

€ 2, 99**

* Direct selling, Branch Cross-Sell

** Normal costs per customer

2) Rich and Most Wealthy

* Direct Sales, Branch Cross-Sell

** Typical costs every customer

The costs associated with the acquisition of a person credit card customer across all marketing channels can be found in the column " costs every customer”. Besides this, an extra steering column with the number of customers in proportion to the potential customers reached is usually added. Based on these computations, we suggest Alpen Bank to use Direct selling and Department Cross-Selling around the affluent and the most affluent portions to acquire new credit card consumers. Both Direct selling and Brach Cross-Selling have got, by far, the minimum costs per customer (respectively €3, 80 and €2, 61). Moreover, the number of clients in proportion for the prospects come to; and therefore the efficiency of the marketing channels would be the highest to get Direct Sales and Branch Cross-Selling (12. 75% and 38. 75%). Direct Mail, Take Types and FSIs have about ten times higher costs (between €26, 14 and €32, 68), and the portion of prospects reached is more than ten instances lower (from 0, 38% to 1, 53%). As the middle class cannot be reached simply by Direct Sales and Branch Cross-Selling, there is no point about distinguishing between whether to reach the three segments or maybe more; only the best two sections can be reached.

Question three or more.

Earnings Analysis

Based on the ‘strategic level' analysis, in order to estimate the profitability analysis we have to take into account five elements: Customers, Time Horizon, every period profits and costs, Discount rate and Preservation rate. i. Customers

Start from Period Horizon=1, the quantity of existing consumers is 0. We imagine each year 40. 000 new customers are obtained into the company. ii. Period Horizon

О¤he time intervalle is 4 years.

3. Per period Revenues and Costs

a) Most affluent, Affluent and Middle Class:

Total Revenues

€ 18, 395, 500

Total Costs

€ 46, 995, 1000

b) Affluent:

Total Revenues

€ 13, 395, 000

Total Costs

€ 46, 995, 500

iv. Discount rate:

Intended for customer related assessments, in the U. S. a discount price (d) about 7. 5-10% a year is often used. Based upon that, we chose 10%, so as to adhere to more conservative approach because the higher the...