Competitive response cases

Hi,
this is related to the customer value, weither it's retention of existing customer or attracting new ones. Here is I would proceed :

1. Understand the root cause / trigger of such action

• Is credit card fee an important criteria in customer's choice over the different banks ?
• Are current client living for new bank offering zero fee ?
• Is the bank trying to gain market share and developp its customer database by attracting new customer with this type of offer ? 

2. Evaluate the customer value by identiying the different revenu generated per customer

• Recurrent revenues : credit card fees, insurances, agios, commission over exchange rate, etc.
• Project related revenues : loan interests (car, real estate, consuming, etc.) 

3. Run the economics of reducing credit cards fees

• Compare the loss of credit card fees revenues on the customer databse over the value generated by new / retained customers

Hope this helps

Best

Benjamin