EXCELCENTRE LEARNING INSTITUTE 061 043 9805
PU E
SHI
NG Y L E NC
OU TO THE GATE OF EXC EL
Education is the most powerful weapon which you can use to change the world
,EXCELCENTRE LEARNING INSTITUTE 061 043 9805
WARNING: PLEASE NOTE THAT PLAGIARISM IS A SERIOUS ACADEMIC
OFFENSE, therefore students must use this document ONLY as a guideline. Hence
students have regenerated their own (personalized) solutions paying particular
attention to module contents as prescribed by module facilitators, lecturers and
supervisors. This document’s purpose is to compact all sources of information that
might be relevant to students’ assignments, hence additional knowledge on the
provided information is not restricted by the authors. However, submitting this
document as one’s final work is considered unethical, and students should be
penalized. If this document is plagiarized by the users and fails, EXCELCENTRE
should not be rendered accountable since the contents in this document only give
learners a kick-start on what is expected of them from their areas of specialty.
CAUTION: STUDENTS ARE NOT MANDATED TO USE EVERY DETAIL IN THIS
DOCUMENT IN WRITING THEIR ASSIGNMENT
Education is the most powerful weapon which you can use to change the world
, EXCELCENTRE LEARNING INSTITUTE 061 043 9805
Table of Contents
Task 1: Customer Count, Retention and Customer Segmentation Analysis ............... 5
1. Total customer count .............................................................................................. 5
2. Percentage of customers in each segment ............................................................ 5
3. Retention rates by segment ................................................................................... 5
4. Attrition rates by segment ....................................................................................... 6
Which segment appears most stable? ....................................................................... 6
Which segment presents the greatest risk? ............................................................... 7
Why is retention more informative than simple customer counts? ............................. 7
Which segment should receive the greatest retention investment? ........................... 8
Task 2: Customer Profitability Analysis ....................................................................... 9
1. Segment Contribution Margin ................................................................................. 9
2. Margin per customer ............................................................................................ 10
3. Total Segment Profit ............................................................................................. 10
Which segments are most profitable? ...................................................................... 11
Are some customers contributing disproportionately to profits? ............................... 12
Does the company have any potentially low-value customer groups? ..................... 12
Task 3: Customer Lifetime Value (CLV) Analysis ...................................................... 15
1. Annual margin ...................................................................................................... 15
2. Customer Lifetime Value for all three segments ................................................... 15
Education is the most powerful weapon which you can use to change the world
PU E
SHI
NG Y L E NC
OU TO THE GATE OF EXC EL
Education is the most powerful weapon which you can use to change the world
,EXCELCENTRE LEARNING INSTITUTE 061 043 9805
WARNING: PLEASE NOTE THAT PLAGIARISM IS A SERIOUS ACADEMIC
OFFENSE, therefore students must use this document ONLY as a guideline. Hence
students have regenerated their own (personalized) solutions paying particular
attention to module contents as prescribed by module facilitators, lecturers and
supervisors. This document’s purpose is to compact all sources of information that
might be relevant to students’ assignments, hence additional knowledge on the
provided information is not restricted by the authors. However, submitting this
document as one’s final work is considered unethical, and students should be
penalized. If this document is plagiarized by the users and fails, EXCELCENTRE
should not be rendered accountable since the contents in this document only give
learners a kick-start on what is expected of them from their areas of specialty.
CAUTION: STUDENTS ARE NOT MANDATED TO USE EVERY DETAIL IN THIS
DOCUMENT IN WRITING THEIR ASSIGNMENT
Education is the most powerful weapon which you can use to change the world
, EXCELCENTRE LEARNING INSTITUTE 061 043 9805
Table of Contents
Task 1: Customer Count, Retention and Customer Segmentation Analysis ............... 5
1. Total customer count .............................................................................................. 5
2. Percentage of customers in each segment ............................................................ 5
3. Retention rates by segment ................................................................................... 5
4. Attrition rates by segment ....................................................................................... 6
Which segment appears most stable? ....................................................................... 6
Which segment presents the greatest risk? ............................................................... 7
Why is retention more informative than simple customer counts? ............................. 7
Which segment should receive the greatest retention investment? ........................... 8
Task 2: Customer Profitability Analysis ....................................................................... 9
1. Segment Contribution Margin ................................................................................. 9
2. Margin per customer ............................................................................................ 10
3. Total Segment Profit ............................................................................................. 10
Which segments are most profitable? ...................................................................... 11
Are some customers contributing disproportionately to profits? ............................... 12
Does the company have any potentially low-value customer groups? ..................... 12
Task 3: Customer Lifetime Value (CLV) Analysis ...................................................... 15
1. Annual margin ...................................................................................................... 15
2. Customer Lifetime Value for all three segments ................................................... 15
Education is the most powerful weapon which you can use to change the world
