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S3E6: Capital One Case Interview Example

Strategy Simplified

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How to Calculate the Profit Per Customer

So, um, I think that what we should think about is on a per unit basis. How many new customers do we have to get to pay back that dropage of the annual fee? Okay. So, uh, so we're losing about 1.8 million in revenue. We can see ways in which we can basically calculate a number of customers we would need to make back 1.8 if we consider that as the benchmark. Sounds good. Can I, am I allowed to round up things so that and round down things so that I can make my life easier?? 2.1 billion to 2 billion and 18 million to 20 million. That's all. Just do it. Easy

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