C1 wants to grow its credit-card business by launching a joint campaign with the merchant RentAHome.com that gives 30 % off when customers pay with a C1 card.

List concrete ways a bank can structure joint campaigns with external merchants to acquire new cardholders. 2. For a 30 %-off RentAHome.com campaign, what business factors must C1 evaluate before launching? 3. Which spend-related metrics will you monitor to assess incremental profitability? 4. Using: 2 M current customers, 5 % already spend at RentAHome, average spend $500, new-customer annual revenue $550, 30 % discount fully funded by C1 – how many new customers are needed to break even (ignore current-customer incremental revenue)? 5. Does the break-even estimate from Q4 seem achievable?  Explain your reasoning using additional benchmarks if supplied. 6. Identify key risks to the break-even calculation and propose mitigation actions. 7. If after launch current spenders increase spend by 20 % and new spenders double their spend, recalculate the break-even number of new customers. 8. Given all analyses, would you run the campaign?  State your recommendation and rationale. 9. Provide an executive-level summary of your findings and next steps.

Frame costs vs incremental revenue, justify assumptions, show formulas clearly, discuss achievability and risks before giving a recommendation.

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