Case Interview Question #00256: Suppose you have just been appointed the manager of the Cross Sells team at Capital One (NYSE: COF). You and your team are responsible for evaluating opportunities to market non-credit card products to our credit card customers. This usually involves products from outside vendors that we can sell to our customers at a premium.
One potential cross-sell opportunity that is sitting on your desk right now is the Prepaid Phone Card—a piece of plastic you can use to pay for long distance telephone calls. Users of the card would call an 800 number, enter the card’s PIN, and then enter the destination telephone number. The outside vendor tracks card usage and minutes remaining. Your responsibility is to determine if the product will be profitable for Capital One and how to maximize this profit.
First, take a few moments to determine what are the most important factors that will help you decide to accept or reject the Phone Card cross-sell.
Questions to Consider: