Case | HBS Case Collection | October 2001 (Revised August 2005)

Pilgrim Bank (A): Customer Profitability

by Frances X. Frei and Dennis Campbell


Provides a context in which students can explore managerial decision making that is critically informed by data analysis. The setting is a retail bank and the decision making relates to the bank's policy toward online banking. The management team is evaluating whether the bank should charge for access to online banking, provide incentives to use the service, or devise some other policy altogether. With thousands of customers already using the online site, the bank is well positioned to assess the impact of the service on customer profitability and retention before making final policy decisions. Told from the perspective of a recent MBA graduate who was charged with performing the necessary data analysis and ultimately coming up with policy recommendations.

Keywords: Banks and Banking; Customers; Profit; Banking Industry;


Frei, Frances X., and Dennis Campbell. "Pilgrim Bank (A): Customer Profitability." Harvard Business School Case 602-104, October 2001. (Revised August 2005.)