Steps:

1) Answer all main questions

2) Answer all sub questions include filling in table

3) After answer all sub-questions fr any main question answer that main question bringing into the answer what you have stated in the answers for the sub questions for the main question.

1. What would you advise Lopin to do to improve churn? In your response, identify the type of

actions, which customers to target, and what organizational adjustments Lopin should

advocate. How does the CHI tool help you form your recommendations? Following are some questions that should help you think more granularly about this issue.

1. a. Who is to blame for a low CHI customer?
2. b. Can you fix a bad customer (i.e., a customer with low CHI)? Under which conditions should
3. c. you expend resources to do so? How much should you spend to do so? When should you

give up on a bad customer?

Financial analysis can help illuminate some of the opportunities and challenges of targeting

resources to troubled customers. If HubSpot executes its Customers Support Management (CSM) Team intervention with all zero-CHI and compares that with an experimental group calculate how different the churn rates and the retention rates will be by filling in the following table. Then calculate the profit from such intervention, given the following information (refer to exhibit 9 for numbers required for filling the table and calculating the profit)

Avg. time to intervene for each customer: 75 mins

Labor cost per hour: $50

Monthly profit from each customer: $ 125 (small customer), $ 375(medium customer), $750 (large customer)

April 2009	Control Group	Experimental Group (with 75 mins of CSM time)
#of customers	143 ( all CHI=0)	143 (30% CHI=80+, 35% CHI=31-80, 35% CHI=0)
Churn rate		?
Customers lost	?	?
Customers retained	?	?

1. d. How would you adjust the customer prospecting, selling, and acquisition process?
2. e. How would you adjust the customer onboarding process?
3. f. How would you adjust HubSpots ongoing customer relationship management processes?g. What else could you do?