SyPhone Case Discussion
.docx
keyboard_arrow_up
School
University of Minnesota-Twin Cities *
*We aren’t endorsed by this school
Course
722
Subject
Management
Date
Apr 3, 2024
Type
docx
Pages
10
Uploaded by CommodoreAnteaterMaster971
The SyPhone case features a (fictitious) cell phone company that sells contracts to small to medium-sized companies. The goal of this case study is to introduce students to the concept of customer lifetime value and how it can help companies think strategically about what types of customers are valuable to them in the long run. To access the case study dashboard, please log in to your Enginius.biz account, select "dashboard" at the top, then choose your license. On the left-hand side of the manual, select "case studies" and then pick SYPHONE (LIFETIME). The case study data is already uploaded, and you can begin analyzing it from there.
CLV results can be different based on the options you selected in the menu. Please insert a screenshot of the parameters selected in your model in your report. Using the Enginius CLV model and a discount factor of 10%, answer the following questions: 1
Question 1.1 What is the lifetime value of a typical customer in each of the four segments, in current dollar values?
[Here are several hints for you:
1)
When calculating the lifetime value (LTV) of a typical customer in each of the four segments, it is important to consider whether to include "next-period costs" and "acquisition costs". In this case, the marketing costs mentioned can be considered next-
period costs. However, the decision to include these costs in the LTV calculation will depend on the available data and other factors.
2)
When calculating the lifetime value of a typical customer in each segment, it is crucial to select either a transactional or contractual model. The decision should be based on the specific attributes of the business and the data that is accessible. Please clarify the reasons
for your selection of either model over the other?
-
I chose the contractual model because typically cell phone plans have contracts for at least the first year
3)
It is recommended to consider whether a discount rate should be applied to the first period. Typically, this decision is linked to the selection of the transactional or contractual
model. If customers are currently under a contract, there is a commitment to the current period, and thus, no discount rate would be applied to the first period. Conversely, if customers are free to leave at any time, it would be appropriate to apply a discount rate to
the first period cash flow.
-
Because I chose the contractual model, I would not apply a discount rate in the first year because that is the typical length of the contract. To maintain the customer base after the first year I would suggest running a 10% discount.
4)
How much is a typical customer worth in each of the four segments, in current dollar values? Please provide your responses for each segment separately.]
Customer lifetime value ($)
Large accounts
$ 130 402.60
Large accounts, rebate
$ 97 714.29
Small accounts
$ 19 126.92
Small accounts, rebate
$ 16 300.00
-
After calculating the customers lifetime value, we see that the large account customers have an average of $130,402.60, the large accounts with rebate have a lifetime value of $97,126.92, the small account customer have a value of $19,126.92 and the small accounts with rebate customers have a value of $16,300.00.
-
We can see that the large account customers who do not have rebate have the highest customer lifetime value.
2
Question 1.2 What is the value of the customer base, in current dollar value? [Hints: The concept of the value of customer base and lifetime value of a typical customer are distinct. The key difference between them is that while the value of customer base considers the overall worth of all customers to the company, the lifetime value focuses on the profit generated from individual customers.]
-
In the model I have calculated; the predicted customer base evolution and selected discount rate, the customer base is currently valued at $478,514,486. This value does not include any customer acquisition fees.
Question 1.3 Compare the lifetime value of a typical customer in each of the four segments to the “Gross
margin” figures in the original spreadsheet. What can you learn from this comparison?
[Hints: To properly compare the lifetime value of customers in each of the four segments with the "Gross margin" figures in the original spreadsheet, it is important to consider the relationship between the two. While customers in the large account segment who do not negotiate a rebate generate gross margins 75% higher than those who do, their lifetime values do not follow the same pattern. For example, the gross margin for large accounts is $63,000, while for large accounts with a rebate it is $36,000, resulting in a 75% increase [(63,000-36,000)/36,000]. Similar calculations can be made for the percentage increase in their CLV values. The same trend
is observed for the small accounts segment, where both sub-segments have lifetime values that differ from what the gross margins suggest. Therefore, it is crucial to thoroughly examine the data and comprehend the reasons behind any inconsistencies between the lifetime value and gross margin figures. What factors may contribute to the disparities between the lifetime value and gross margin figures?]
-
Although the Large accounts have the highest Gross Margin, when it is applied to the Customer lifetime Value the Large accounts with rebates have a higher percentage outcome.
-
The same is true for small accounts and small accounts with rebates.
-
This can conclude that accounts with rebates have a higher long-term value for SyPhone whereas the accounts without rebates are more profitable short-term.
Number of customers
Gross margins ($)
Marketing costs, next period ($)
Customer Lifetime Value
Customer Lifetime Value (as percentage of
Gross Margin)
Large accounts
500
63000
5000
130402.6
207%
Large accounts, rebate
2000
36000
4000
97714.29
271%
Small accounts
5000
10800
1500
19126.92
177%
Small accounts, rebate
7500
7200
1000
16300
226%
3
Lost customers
0
0
0
0
0%
4
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Questions
( You don't have to write alot just mention few key details ) Consumer confidence reports are legally required based on the Safe Drinking Water Act Find one for your hometown (or neighboring community) (it can be any state for example: California) and identify the following:
(a) name of community,
(b) source of water serving the community,
(c) regulated contaminants that are monitored,
(d) whether violations occurred, and
(e) whether and the value of the chlorine residual present (will be noted as the chlorine measurement and may be identified as MRDL).
arrow_forward
Consider the image below. Briefly design a short section of a survey questionnaire , with only three questions, to identify the most important attributes when customers are choosing a coffee shop and how they would rank the importance of the attributes.
arrow_forward
1. A detailed description of the clinical need seeking to address, including an overview of the related disease state and the existing solution landscape for Hypertension disease.
2. A review of the affected stakeholders, with an emphasis on which groups are influencers versus decision makers, along with a sum- mary of the market for the need (overview of the competition, key market segment(s), market size calculations, and a value estimate). Be sure to discuss what fraction of the target market segment is accessible with supporting evidence for Hypertension disease.
arrow_forward
Your client (SuperSpool) imports hand-spun wool yarns from Australia and New Zealand. They have very little market share as they just started their business in the summer of 2021. Their biggest competitor is ClassicYarn. They want to increase awareness of their great products with the goal of gaining market share in the U.S. To help develop your agency's recommendations, you want to execute a survey of people who design knitting and crocheting patterns for customized clothing using specialty yarns. Which of the following questions is probably the BEST to use? A)Do you prefer hand spun yarns and American made products?
B) Yes or No: Do you think ClassicYarn is a socially responsible company?
C) On a scale of one to five with five meaning you strongly agree and one meaning you strongly disagree, how important is it that yarns you buy are made in the U.S.A.?
D) Given current supply chain issues, knowing ClassicYarn uses only fibers made in the U.S.A., would you agree its products are more…
arrow_forward
CHOOSE THE BEST ANSWER. PLEASE ANSWER AS SOON AS POSSIBLE
1- What is the best need/benefit-oriented approach to defining a car?
Descriptions of a car's engine size and features
Outlining the warranty that comes with the car
Describing how it provides more efficient and reliable transportation
Showing the beautiful color and styling
2-
What is the best way for TWU to define their "market" in a marketing sense?
the location of their buildings
current and potential students
the faculty and staff delivering the product
the mix of programs they offer
3-
Which of the following is not recommended for a marketing plan?
Communicate the plan to appropriate managers.
Once you have a good plan in place, do not change it for at least a year.
Marketing plans should be creative.
Use common sense.
4-
Which of the following is not a current trend (described in book/class)?
Increasing consumer demands
Decreasing price sensitivity among consumers
Overall…
arrow_forward
Consider the illustration below.
a/Briefly design a short section of a survey questionnaire , with only three questions, to identify the most important attributes when customers are choosing a coffee shop and how they would rank the importance of the attributes.
b/ explain how you would analyse and interpret the data for the three questions designed.
arrow_forward
One of the objectives of CRM software is to capture data about every contact the company has with a customer and to store it in the CRM system.
Do you think customers might be concerned with this practice? Why or why not? What are the advantages that CRM software offers to the customer?
*Please provide a new answer. Thank you.*
arrow_forward
A health group wants to identify consumers who: once went to a competing primary care group but left that group, have at least one child, and live in the primary service area of the town’s hospital. Write the questions to target this population and suggest the best method for getting this information. There are several questions that could help target this population.
arrow_forward
write a well developed approximately one page response for each of the topics.:
The Centers for Disease Control (CDC-non-regulatory) has played a major role in developing infection control guidelines/recommendations, as well as assisted in implementing interventions for multiple aspects of the COVID-19 pandemic. Please do some exploring and report on at least one aspect of the agency's role.
You were just hired as a Director of Quality for a regional group of 15 private medical offices throughout New York City. They are still using a paper medical record, as they didn't want to be bothered with the transition and the staff prefer manual records, as they are still computer illiterate. You have the responsibility of collaborating with an external consultant to implement a new electronic medical record. Please develop a plan for implementation of the new EMR, including staff education, as well as any requirements from a QI perspective.
arrow_forward
1)You are tasked with designing a research study to analyse customer satisfaction for a hotel
chain. Outline the key components and considerations you would include in your research
design, including data collection methods, sample selection, and analysis techniques.
arrow_forward
How can businesses use predictive analytics within their CRM systems to forecast customer behavior and optimize their marketing and sales strategies? Provide a detailed explanation.
arrow_forward
What is a research question you think should be studied in the healthcare industry?
How can you change that research question into a hypothesis?
Why is research important in the healthcare industry?
arrow_forward
Choose the best ANSWER
1-
What is the best need/benefit-oriented approach to defining a car?
Descriptions of a car's engine size and features
Outlining the warranty that comes with the car
Describing how it provides more efficient and reliable transportation
Showing the beautiful color and styling
2-
What is the best way for TWU to define their "market" in a marketing sense?
the location of their buildings
current and potential students
the faculty and staff delivering the product
the mix of programs they offer
3-
Which of the following is not recommended for a marketing plan?
Communicate the plan to appropriate managers.
Once you have a good plan in place, do not change it for at least a year.
Marketing plans should be creative.
Use common sense.
4-
Which of the following is not a current trend (described in book/class)?
Increasing consumer demands
Decreasing price sensitivity among consumers
Overall decrease in brand loyalty
Increasing…
arrow_forward
Keller Williams Realty Inc. (KW)
In 2018, Gary Keller the co-founder and CEO of KW announced that the company would change from a real estate company to become a technology company that specializes in real estate. To drive value for agents, KW has collaborated with leading technology companies such as Google, DocuSign, and Nextdoor. In the wake of Covid-19, KW has also teamed up with Facebook to train agents on best practices associated with virtual home tours.
Question:
What are the possible reasons for Keller Williams to seek collaborations with leading technology companies?
arrow_forward
Health research involves analyzing millions of patient records with the goal of better understanding human diseases, to determine treatment effectiveness, and to identify health and disease trends. However, HIPAA law requires patients to give approval for their
records to be used in this kind of study, and, many patients do not understand what is being asked of them when permission is
requested. What impacts might this have on the speed of and the quality of health research? What recommendations can you make to resolve the impacts identifed?
arrow_forward
Paraphrase this one.
Against the backdrop of today's healthcare landscape, replete with the imperative to maximize resource efficiency, predictive analytics emerges as an indispensable tool. Its deployment empowers healthcare establishments to enhance both financial and operational decision-making, optimize the delicate balance of inventory and staffing levels, streamline supply chain logistics, and anticipate impending medical equipment maintenance requirements. Moreover, the application of predictive analytics augments clinical outcomes by sensitively detecting early signals of patient deterioration, pinpointing patients at risk of readmission, and elevating the precision of patient diagnosis and treatment.
arrow_forward
Research Problem/Question/Hypothesis
Research Problem/Question/Hypothesis
Write a clear Purpose/Aim and Objectives of the Study.
Clearly state the Significance of the Study.
Discuss the above on the following topic:
The factors effecting students adoption of Eco-friendly Fuel Alternatives.
Write a clear Statement of the Problem.
Discuss the above on the following topic:
The factors effecting students adoption of Eco-friendly Fuel Alternatives.
arrow_forward
1.) Design a questionnaire for consumer preference survey regarding the problem. Please keep in mind all aspects of the product, company, data analysis, etc. while designing the questionnaire.
2.) Pursuant to collection of data through the consumer preference survey regarding the product, please explain each step in your data analysis plan. Each step of the data analysis plan must be linked to the questions you have designed for the survey in the previous question.
3.) How would you conduct the survey? What would be your mode of data collection and sampling technique? How would you define the population and sample? Justify your answer.
arrow_forward
An ice cream company wants to learn more about its customers, their ice cream preference, and their ice cream purchasing habits. They have created a survey and it is...not good. The survey contains the following types of ineffective survey questions:
A vague questionnaire item
A double-barreled question, and
A subjective question
In your initial post, please provide an example of how the ineffective ice cream survey questions might be constructed. Include one vague question, one double-barreled question, and one subjective question. And remember...it needs to focus on the ice cream preferences and purchasing habits of the customers.
Your discussion post will only contain the 3 questions. Do not explain why they are ineffective! Just type out your questions and submit them.
arrow_forward
What are questions to ask in a questionnaire to research the topic; what are the impacts of working remotely during the covid-19 pandemic
arrow_forward
What should Starwood do to attract loyalty program nonusers into the program or find out more about the behavior and preferences of this large group?
How can a large company such as Starwood exploit customer data while still safeguarding and respecting customer privacy?
arrow_forward
Cick on The x
C blever | Portal
Freckle Student Dashboard
Dashboard
6 BigBlueButton Independern x
udent.freckled
Clever | Portal
clever.com
Probability -1r
You can earn'S coins
Eunice selected a random sample of Seattle residents and polled them about traffic solutions. Which population
could Eunice draw conclusions about?
A) entire Seattle population
B) Seattle homeowners
C) Seattle residents who own a car
D) Seattle residents who take the bus
A
B
Submit
rch
arrow_forward
As part of case-study research based in a textile company with over 800 customers, you have been given access to an internal market research report. This was undertaken by the company’s marketing department. The report presents the results of a recent customer survey as percentages. The section in the report that describes how the data were collected and analyzed is reproduced below:
“Data were collected from a sample of current customers selected from our customer database. The data were collected using an Internet-mediated questionnaire designed and administered via the google forms. Thirty-nine customers responded, resulting in an 18.7 per cent response rate. These data were analyzed using the SPSS computer software. Additional qualitative data based on in-depth interviews with customers were also included. Do you consider these data are likely to be reliable? Give reasons for your answer.
arrow_forward
You have been hired recently by a large bank in its credit cardmarketing division. The bank has relationships with a large number ofcolleges and prints a wide variety of credit cards featuring college logos,images, and the like. You have been asked to oversee theimplementation of a new program targeting first-year college studentsat the schools with which the bank has a relationship. The bank hasalready purchased the names and home addresses of the incomingclass. You have been told that no credit checks will be required for thesecards as long as the student is over 18 years of age. The bank plans afirst-day-of-school marketing blitz that includes free hats, T-shirts, andbook promotions, as well as free pizza, if the students simply fill out anapplication. Do you think it is a good idea to target this program tothese new students?
arrow_forward
As a local practicing dental hygienist, you serve on the board of a community based dental clinic that provides oral healthcare services and school-based primary preventive initiatives in the Title I schools of the local school district. You and another board member collaborate to write a grant to help support the school-based prevention programs. What Healthy People 2020 objectives would you be targeting with the grant? What data would be required to demonstrate a need for funding for sealant and fluoride varnish programs for schoolchildren in your community? Where could you find data to help with the grant proposal?
arrow_forward
Assume that a research study included the following question: "Why do you prefer a gasoline powered car over an electric powered car?"
Explain how you would code possible responses to this question. (Note: explore all that you think might be possible answers, not just how you would answer the question). Develop possible responses and the category groupings you would use.
arrow_forward
The BIR need to assess a taxpayer for payment of taxes
Group of answer choices
True
False
arrow_forward
Provide at least three possible outcomes for an organization if the credibility of a program or business data is compromised.
arrow_forward
i want some recommendations for Insurance companies
can you get me some recommendation
arrow_forward
Alpesh
arrow_forward
Give very short answers to each of the questions below.
Suppose you work in a corporate firm as a sales representative. What would your first approach be to a customer who is dissatisfied with a product you sell, what would you do?
Explain what masks you wear and what roles you play as a customer in 24 hours.
arrow_forward
What are the differences between descriptive, predictive, and prescriptive analytics? Explain in detail with examples how each of these can be useful in the current business world.
arrow_forward
What are the advantages and disadvantages of open-ended versus closed-ended response scales? What other issues should researchers consider in terms of the wording and order of items in a survey?
arrow_forward
A new program for reducing drug abuse in schools is put into effect and then evaluated. This is an example of
a. a one-shot case study
b. pretest-posttest design
c. a case survey
d. experimental design
arrow_forward
Please critically evaluate the following research methodologies. Identify some of the problems with both methodologies. How could these methodologies be improved?
1. To access the extent of its trade area, a shopping mall stations interviewers in the parking lot every Monday and Friday evening. After people park their cars, interviewers walk up to them and ask them for their ZIP codes.
2. To access the potential for new horror movies starring alien robots, a major studio invites people to call a 900 number and vote yes if they would like to see such movies or no if they would not. Each caller is billed a $2 charge.
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you
Understanding Business
Management
ISBN:9781259929434
Author:William Nickels
Publisher:McGraw-Hill Education
Management (14th Edition)
Management
ISBN:9780134527604
Author:Stephen P. Robbins, Mary A. Coulter
Publisher:PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract...
Management
ISBN:9781305947412
Author:Cliff Ragsdale
Publisher:Cengage Learning
Management Information Systems: Managing The Digi...
Management
ISBN:9780135191798
Author:Kenneth C. Laudon, Jane P. Laudon
Publisher:PEARSON
Business Essentials (12th Edition) (What's New in...
Management
ISBN:9780134728391
Author:Ronald J. Ebert, Ricky W. Griffin
Publisher:PEARSON
Fundamentals of Management (10th Edition)
Management
ISBN:9780134237473
Author:Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:PEARSON
Related Questions
- ( You don't have to write alot just mention few key details ) Consumer confidence reports are legally required based on the Safe Drinking Water Act Find one for your hometown (or neighboring community) (it can be any state for example: California) and identify the following: (a) name of community, (b) source of water serving the community, (c) regulated contaminants that are monitored, (d) whether violations occurred, and (e) whether and the value of the chlorine residual present (will be noted as the chlorine measurement and may be identified as MRDL).arrow_forwardConsider the image below. Briefly design a short section of a survey questionnaire , with only three questions, to identify the most important attributes when customers are choosing a coffee shop and how they would rank the importance of the attributes.arrow_forward1. A detailed description of the clinical need seeking to address, including an overview of the related disease state and the existing solution landscape for Hypertension disease. 2. A review of the affected stakeholders, with an emphasis on which groups are influencers versus decision makers, along with a sum- mary of the market for the need (overview of the competition, key market segment(s), market size calculations, and a value estimate). Be sure to discuss what fraction of the target market segment is accessible with supporting evidence for Hypertension disease.arrow_forward
- Your client (SuperSpool) imports hand-spun wool yarns from Australia and New Zealand. They have very little market share as they just started their business in the summer of 2021. Their biggest competitor is ClassicYarn. They want to increase awareness of their great products with the goal of gaining market share in the U.S. To help develop your agency's recommendations, you want to execute a survey of people who design knitting and crocheting patterns for customized clothing using specialty yarns. Which of the following questions is probably the BEST to use? A)Do you prefer hand spun yarns and American made products? B) Yes or No: Do you think ClassicYarn is a socially responsible company? C) On a scale of one to five with five meaning you strongly agree and one meaning you strongly disagree, how important is it that yarns you buy are made in the U.S.A.? D) Given current supply chain issues, knowing ClassicYarn uses only fibers made in the U.S.A., would you agree its products are more…arrow_forwardCHOOSE THE BEST ANSWER. PLEASE ANSWER AS SOON AS POSSIBLE 1- What is the best need/benefit-oriented approach to defining a car? Descriptions of a car's engine size and features Outlining the warranty that comes with the car Describing how it provides more efficient and reliable transportation Showing the beautiful color and styling 2- What is the best way for TWU to define their "market" in a marketing sense? the location of their buildings current and potential students the faculty and staff delivering the product the mix of programs they offer 3- Which of the following is not recommended for a marketing plan? Communicate the plan to appropriate managers. Once you have a good plan in place, do not change it for at least a year. Marketing plans should be creative. Use common sense. 4- Which of the following is not a current trend (described in book/class)? Increasing consumer demands Decreasing price sensitivity among consumers Overall…arrow_forwardConsider the illustration below. a/Briefly design a short section of a survey questionnaire , with only three questions, to identify the most important attributes when customers are choosing a coffee shop and how they would rank the importance of the attributes. b/ explain how you would analyse and interpret the data for the three questions designed.arrow_forward
- One of the objectives of CRM software is to capture data about every contact the company has with a customer and to store it in the CRM system. Do you think customers might be concerned with this practice? Why or why not? What are the advantages that CRM software offers to the customer? *Please provide a new answer. Thank you.*arrow_forwardA health group wants to identify consumers who: once went to a competing primary care group but left that group, have at least one child, and live in the primary service area of the town’s hospital. Write the questions to target this population and suggest the best method for getting this information. There are several questions that could help target this population.arrow_forwardwrite a well developed approximately one page response for each of the topics.: The Centers for Disease Control (CDC-non-regulatory) has played a major role in developing infection control guidelines/recommendations, as well as assisted in implementing interventions for multiple aspects of the COVID-19 pandemic. Please do some exploring and report on at least one aspect of the agency's role. You were just hired as a Director of Quality for a regional group of 15 private medical offices throughout New York City. They are still using a paper medical record, as they didn't want to be bothered with the transition and the staff prefer manual records, as they are still computer illiterate. You have the responsibility of collaborating with an external consultant to implement a new electronic medical record. Please develop a plan for implementation of the new EMR, including staff education, as well as any requirements from a QI perspective.arrow_forward
- 1)You are tasked with designing a research study to analyse customer satisfaction for a hotel chain. Outline the key components and considerations you would include in your research design, including data collection methods, sample selection, and analysis techniques.arrow_forwardHow can businesses use predictive analytics within their CRM systems to forecast customer behavior and optimize their marketing and sales strategies? Provide a detailed explanation.arrow_forwardWhat is a research question you think should be studied in the healthcare industry? How can you change that research question into a hypothesis? Why is research important in the healthcare industry?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Understanding BusinessManagementISBN:9781259929434Author:William NickelsPublisher:McGraw-Hill EducationManagement (14th Edition)ManagementISBN:9780134527604Author:Stephen P. Robbins, Mary A. CoulterPublisher:PEARSONSpreadsheet Modeling & Decision Analysis: A Pract...ManagementISBN:9781305947412Author:Cliff RagsdalePublisher:Cengage Learning
- Management Information Systems: Managing The Digi...ManagementISBN:9780135191798Author:Kenneth C. Laudon, Jane P. LaudonPublisher:PEARSONBusiness Essentials (12th Edition) (What's New in...ManagementISBN:9780134728391Author:Ronald J. Ebert, Ricky W. GriffinPublisher:PEARSONFundamentals of Management (10th Edition)ManagementISBN:9780134237473Author:Stephen P. Robbins, Mary A. Coulter, David A. De CenzoPublisher:PEARSON
Understanding Business
Management
ISBN:9781259929434
Author:William Nickels
Publisher:McGraw-Hill Education
Management (14th Edition)
Management
ISBN:9780134527604
Author:Stephen P. Robbins, Mary A. Coulter
Publisher:PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract...
Management
ISBN:9781305947412
Author:Cliff Ragsdale
Publisher:Cengage Learning
Management Information Systems: Managing The Digi...
Management
ISBN:9780135191798
Author:Kenneth C. Laudon, Jane P. Laudon
Publisher:PEARSON
Business Essentials (12th Edition) (What's New in...
Management
ISBN:9780134728391
Author:Ronald J. Ebert, Ricky W. Griffin
Publisher:PEARSON
Fundamentals of Management (10th Edition)
Management
ISBN:9780134237473
Author:Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:PEARSON