PROFIT INSIGHT delivered solutions focused on immediate earnings improvement, which helped this major UK card issuer gain £17 million in the first year.
The Business Challenge
The client had recently completed their own review of 108 opportunities, which had minimal financial potential or impact. Client considered incremental revenues of £10m to be a successful consulting engagement.
Client requested Profit Insight to identify and train an internal team dedicated to implementing on-going revenue enhancement solutions, leveraging Profit Insight’s approach and methodologies.
The client also requested a joint review of their card management supplies and corresponding service level agreements to optimize performance.
How Profit Insight Helped
Profit Insight had two engagement team members work on site at the client’s request for 7 weeks. During that time Profit Insight developed 41 new ideas and worked with the client to improve SLAs with suppliers and share best practices for on-going revenue review, enabling the client to continue to effectively identify and measure opportunities.
Engagement Results
The client implemented 7 new revenue ideas and expense reductions with the earliest starting 6 weeks after the engagement began. The client tracked £17m in incremental earnings during the first year and annual earnings growth over 3% per account. During the period Profit Insight’s strategies were measured, monthly revenue per account increased from £17.04 to £19.61.
Profit Insight was also asked to review the 108 strategies the client identified prior to the engagement and Profit Insight succeeded in enhancing several of the client’s ideas and leading their successful implementation.
Insights
- In addition to the incremental earnings identified, Profit Insight recommended several strategies for product settings and revenue practices.
- The client also had challenges with early month on books, attrition and delinquency. Issues Profit Insight was able to provide insights and solutions based on global best practices and banking expertise.
