Question

What might explain the variation in profitability across customers? This is a conceptual question, not a computational one. Think about the variable costs in the banking industry. Write a few sentences.

Answer 1

Here is the answer of variation in profitability across customers and variable costs in Banking industry...

All people may be created equal, but the same be said for customers. El eryone knows that some it Customers are more profiteeble than others. Companies don't necessarilly need a state of the art data bese or analytics technology to imporve customer profitability. The customer valere managment cycle mancege customer - Segmentation Measure customer margens manage customer Profitability measure customer - measure customer impact a lifetime value Typically the customer relationship begains when the Company invests to attract the customer. Variable Cost in the banking Industory. In the I current economic climate, banks have to cust spenching and I send officiencies wherever possible. However, many linuostment banks have sethstantial - and increasing Cost allocations that make it nearly impossible to low en costs and provide a constant challenge. organizations are now discovering that cost transparency and solid eunderstanding as their allocation are prerequisites to getting a handle en Cost. Containment

We are seeing an interesting dynamic dovolop anong investment banks. They are inovarsingly looking to move to a variable cost structure haugely driven by the critical need to contain Costs and peotect against futuro cost increase Some organization are using managment services to eliminelle high fixed costs and move to a cast por caut como modle for contain assets classes.

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