Are students of today tomorrows profitable customers? -‐ A case studie on students as a targeted group within the banking industry
Abstract: The fact that many banks today target students with concessional deals is no news. Students are a coveted group at the financial institutions, above all because they will most likely have a secure and well paid occupancy after they have finished their studies. This study will show the importance of banks attracting the students as customers and that the students will continue being customers even after having finalised their studies. It will also show that the banks market themselves towards the students as if students were a homogenous group as well as proving the benefits of calculating a student’s Customer Lifetime Value (CLV). The study is based on research articles within the subject, one interview with the CEO at one of the banks in Sweden and two surveys that were sent out to 10 000 people that are either part of a current student deal at a bank or has been. The result shows that the bank will increase its long-‐term profitability if it has more students in the customer base. Given that the students remain as customers of the bank after their studies are finished. The results also show the significance of dividing the group "students" based on chosen variables depending on the banks objective and CLV. From this it is concluded that it is less expensive reaching out to the academic meritorious customers in an early stage then to obtain these customers hindsight.
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