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    SyPhone Student Data (CLV)

    Uploaded by

    leni th
    The document contains information about customer segments, including the number of customers in each segment, gross margins, marketing costs, and transition probabilities between segments. It then provides a customer lifetime value (CLV) analysis for each segment over a 10 year period, accounting for customers transitioning between segments and being lost over time. The CLV analysis finds that the Large Accounts segment has the highest CLV at $75,576 per customer, followed by Large Accounts rebate, Small Accounts rebate, and Small Accounts. An acquisition analysis shows that acquiring Large Accounts or Large Accounts rebate customers would be most financially beneficial based on their higher CLV values.

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    © All Rights Reserved
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    SyPhone Student Data (CLV)

    Uploaded by

    leni th
    500 views9 pages
    The document contains information about customer segments, including the number of customers in each segment, gross margins, marketing costs, and transition probabilities between segments. It then provides a customer lifetime value (CLV) analysis for each segment over a 10 year period, accounting for customers transitioning between segments and being lost over time. The CLV analysis finds that the Large Accounts segment has the highest CLV at $75,576 per customer, followed by Large Accounts rebate, Small Accounts rebate, and Small Accounts. An acquisition analysis shows that acquiring Large Accounts or Large Accounts rebate customers would be most financially beneficial based on their higher CLV values.

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    The document contains information about customer segments, including the number of customers in each segment, gross margins, marketing costs, and transition probabilities between segments. It then provides a customer lifetime value (CLV) analysis for each segment over a 10 year period, accounting for customers transitioning between segments and being lost over time. The CLV analysis finds that the Large Accounts segment has the highest CLV at $75,576 per customer, followed by Large Accounts rebate, Small Accounts rebate, and Small Accounts. An acquisition analysis shows that acquiring Large Accounts or Large Accounts rebate customers would be most financially beneficial based on their higher CLV values.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    500 views9 pages

    SyPhone Student Data (CLV)

    Uploaded by

    leni th
    The document contains information about customer segments, including the number of customers in each segment, gross margins, marketing costs, and transition probabilities between segments. It then provides a customer lifetime value (CLV) analysis for each segment over a 10 year period, accounting for customers transitioning between segments and being lost over time. The CLV analysis finds that the Large Accounts segment has the highest CLV at $75,576 per customer, followed by Large Accounts rebate, Small Accounts rebate, and Small Accounts. An acquisition analysis shows that acquiring Large Accounts or Large Accounts rebate customers would be most financially beneficial based on their higher CLV values.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 9
    At a glance
    Powered by AI
    The document describes different customer segments and their profitability using metrics like CLV and discusses acquisition costs.

    Large accounts, large accounts with rebate, small accounts, and small accounts with rebate.

    Customer Lifetime Value (CLV), gross margins, marketing costs, costs of service, and retention/churn rates between segments.

    Segment Description

    Segment labels and number of customers currently in each segment.


    Gross margins relate to current period, while marketing costs are anticipated expenses for next period based on c
    Marketing
    Segments / Segment Number of Gross Costs of
    costs, next Revenues
    description customers margins service
    period
    Large accounts 500 $63,000 $5,000 $180,000 $117,000
    Large accounts, rebate 2000 $36,000 $4,000 $144,000 $108,000
    Small accounts 5000 $10,800 $1,500 $24,000 $13,200
    Small accounts, rebate 7500 $7,200 $1,000 $19,200 $12,000
    Lost customers 0 $0 $0 $0 $0

    Transition Matrix
    Transition probabilities of customers from one segment to another across periods.
    Each line sums up to 100%.
    The very last segment represents customers who are assumed to be lost forever.
    Large Small
    Large Small Lost
    Last period / Next period accounts, accounts,
    accounts accounts customers
    rebate rebate
    Large accounts 55% 10% 35%
    Large accounts, rebate 75% 25%
    Small accounts 58% 2% 40%
    Small accounts, rebate 70% 30%
    Lost customers 0% 0% 0% 0% 100%

    Discount Factor 0.15


    next period based on current segment membership.
    Customers 0 1 2 3
    Large accounts 500 100% 100% 100% 55.0%
    New w/rebate - 0 0% 0% 10.0%
    Repeat w/rebate - 0 0% 0% 0.0%
    Lost Large accounts - 0 0% 0% 35.0%
    Lost customers w/rebate - 0 0% 0% 0.0%
    Total lost customers 0.00% 35.00%
    Cumulative 35.00%
    Gross Margin Marketing
    Large accounts 63,000.00 5,000.00 58,000.00 58,000.00 31,900.00
    New w/rebate 36,000.00 5,000.00 0.00 0.00 3,100.00
    Repeat w/rebate 36,000.00 4,000.00 0.00 0.00 0.00
    Lost Large accounts 0.00 5,000.00 0.00 0.00 1,750.00
    Lost customers w/rebate 0.00 4,000.00 0.00 0.00 0.00
    58,000.00 58,000.00 33,250.00
    Discount Factor 0.15 1.000 0.870 0.756
    CLV 75,576.56 50,434.78 25,141.78
    50,434.78 75,576.56

    Customers 0 1 2
    Large accounts w/rebate 2,000 100% 100% 100% 75%
    Lost customers 0% 0% 0% 25.0%
    Total lost customers 0% 0% 0.0% 25.0%

    Gross Margin Marketing


    Large accounts w/rebate 36,000.00 4,000.00 32,000.00 32,000.00 24,000.00
    Lost customers 0.00 4,000.00 0.00 0.00 1,000.00
    Lost customers
    32,000.00 23,000.00
    Discount Factor 0.15 0.870 0.756
    CLV 45,217.39 27,826.09 17,391.30
    27,826.09 45,217.39

    Customers 0 1 2
    Small accounts 5,000 100% 100% 100%
    New w/rebate - 0 0% 0%
    Repeat w/rebate - 0 0% 0%
    Lost Small accounts - 0 0% 0%
    Lost customers w/rebate - 0 0% 0%
    Total lost customers 0.00% 0.00%
    Cumulative 0.00% 0.0%
    Gross Margin Marketing
    Small accounts 10,800.00 1,500.00 9,300.00 9,300.00
    New w/rebate 7,200.00 1,500.00 0.00 0.00
    Repeat w/rebate 7,200.00 1,000.00 0.00 0.00
    Lost Small accounts 0.00 1,500.00 0.00 0.00
    Lost customers w/rebate 0.00 1,000.00 0.00 0.00
    9,300.00 9,300.00
    Discount Factor 0.15 1.000 0.870
    CLV 8,086.96 8,086.96 0.00
    8,086.96 8,086.96

    Customers 0 1 2
    Small accounts w/rebate 7,500 100% 100% 100%
    Lost customers 0% 0% 0%
    Total Lost customers 0% 0% 0.0%

    Gross Margin Marketing


    Small accounts w/rebate 7,200.00 1,000.00 6,200.00 6,200.00
    Lost customers 0.00 1,000.00 0.00 0.00
    Total lost customers
    6,200.00
    Discount Factor 0.15 0.870
    CLV 5,391.30 5,391.30 0.00
    5,391.30 5,391.30
    4 5 6 7 8 9 10 11
    12 13 14 15 16 17 18 19
    20
    Customer Analysis
    Customer Number CLV Lost by Yr. 5 Alive in Yr. 5
    Large accounts 500 75,576.56
    Large accounts, rebate 2,000 45,217.39
    Small accounts 5,000 8,086.96
    Small accounts, rebate 7,500 5,391.30

    Acquisition Analysis

    Large accounts Large accounts, reSmall accounts Small accounts, rebate


    # Prospects 100 100 100 100
    Pre-Sale Cost
    # Accounts Won 20 35 15 40
    Setup Costs
    Total Costs
    CLV per Account Won $ 75,577 $ 45,217 $ 8,087 $ 5,391
    Total CLV $ 1,511,531 $ 1,582,609 $ 121,304 $ 215,652
    Total Net Value $1,511,531 $1,582,609 $121,304 $215,652
    Net Value/Account
    Net Value/Prospect
    ccounts, rebate

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