2. Calculate segment churn rate, where churn rate equals: (Customers at period N - Customers at end of period N.) x 100 Customers at period N a. What is the churn rate per segment at N+5? b. Which segment has the greatest level of churn? c. What is the overall churn rate for these four segments at N+5? d. What does this tell about the offering of rebates on customer longevity with Republic Wireless? Is the assumption that customers who receive rebates stay with the company longer true? This table reports the number of customers expected in each segment after each period. These simulations take into account: The number of customers at the start. Customer acquisitions, if any. Customer transitions from segments to segments at each period (i.e., transition matrix). The 'infinity' period simulates where the database will converge to after 250 time periods. Infinity 0 0 N N+1 N+2 N+3 N+4 N5 N+6 N+7 N+8 N+9 N+10 Large 500 SOS 293 181 125 89 59 42 28 16 9 accounts Large ac 2000 2065 1 674 1375 1 149 979 838 675 540 408 308 counts rebate Small 5 000 5 130 3 125 1988 1353 945 673 485 331 202 117 accounts Small ac 7500 7650 6 556 5404 4381 3467 2 716 2 101 1 603 1 213 890 counts, rebate 0 0 4 117 7292 9.758 11 700 13 224 14 417 15 338 16 036 16 552 omers Total 15 000 15 350 15 765 16240 16 765 17 180 17 510 17 720 17 840 17875 17875 Customer base evolution. 0 Lost cast 17875 17875 8.000- 6,000- I 4,000 - 2,000 - 0- Nii N2 N3 N4 Nis NG NE N8 NE N + 10 Large accounts Large accounts, rebate - Small accounts - Small accounts, rebate Customer segment evolution. Segments with an absorbing state, if any, are not displayed. 2. Calculate segment churn rate, where churn rate equals: (Customers at period N - Customers at end of period N.) x 100 Customers at period N a. What is the churn rate per segment at N+5? b. Which segment has the greatest level of churn? c. What is the overall churn rate for these four segments at N+5? d. What does this tell about the offering of rebates on customer longevity with Republic Wireless? Is the assumption that customers who receive rebates stay with the company longer true? This table reports the number of customers expected in each segment after each period. These simulations take into account: The number of customers at the start. Customer acquisitions, if any. Customer transitions from segments to segments at each period (i.e., transition matrix). The 'infinity' period simulates where the database will converge to after 250 time periods. Infinity 0 0 N N+1 N+2 N+3 N+4 N5 N+6 N+7 N+8 N+9 N+10 Large 500 SOS 293 181 125 89 59 42 28 16 9 accounts Large ac 2000 2065 1 674 1375 1 149 979 838 675 540 408 308 counts rebate Small 5 000 5 130 3 125 1988 1353 945 673 485 331 202 117 accounts Small ac 7500 7650 6 556 5404 4381 3467 2 716 2 101 1 603 1 213 890 counts, rebate 0 0 4 117 7292 9.758 11 700 13 224 14 417 15 338 16 036 16 552 omers Total 15 000 15 350 15 765 16240 16 765 17 180 17 510 17 720 17 840 17875 17875 Customer base evolution. 0 Lost cast 17875 17875 8.000- 6,000- I 4,000 - 2,000 - 0- Nii N2 N3 N4 Nis NG NE N8 NE N + 10 Large accounts Large accounts, rebate - Small accounts - Small accounts, rebate Customer segment evolution. Segments with an absorbing state, if any, are not displayed
