Kansai Case Study

The lifetime value of a typical customer in each segment when the discount rate is 15%.

The Life time value of a customer who did not use auto-pay is $1361.87 (LTV net of acquisition costs= $1064. 87)

* The same phone line is used for their three type of clients (DIYs, Professional users and

Contract theory - studies how economic actors can and do construct contractual arrangements, generally in the presence of asymmetric information

Second, the customers switching costs was small. Members were likely to drop out anytime they like or renew membership. According to statistics, about 30% of members dropped out after a year and 70% members renew their yearly subscription every year. Because of this situation, the competition between the exiting competitors had become more intense. As noted before, the company should provide diverse products and addition of new programs to get back members.

3. Based on the post-1995 commission formula and information in the case on pricing and commission rates, calculate the cash inflows for premiums and cash outflows for commissions for years 1 to 3 that would arise from the sign-up of 1000 new members at the beginning of year 1. Assume that: (a) actual member renewal rates are 75% for both years 2 and 3, and (b) 25% of recoverable commission advances in each of years 2 and 3 are expected to prove uncollectible.

Answered and screened two or more phone calls at a time using the multi-line switchboard, effectively directing the customer to and from the department of their asking

Contract Staffing: are not employed directly through the organisation, can ‘get rid of’ at any time, can shop around for cheaper contractors, aren’t managed through the organisation.

Remember, since there are no balance sheets or operating statements, you will have to MANUALLY calculate the ACP. Just look at the numbers: 30% pay after 10 days + 50% pay after 30 days + 20% pay after 60 days. What’s the average? Voila! Also, for consistency, use 360 days = one year

* How to maintain existing clients so that Best Financial’s existing client base (600) will be loyal and stable.

the service and I don’t see myself going by that my previous carrier. There trend of people

Company U’s primary focus is creating products that create value and fill a need in growing markets – it currently has three products. SUSI is the lower quality offering which focuses on weight and volume, marketed towards Singles and Others who are the most price-sensitive and are projected to have the highest growth rates over the next five years. SULI is the high quality electronic offering, distributed primarily to Professionals and High Earners who are driven by performance and convenience. VUGO is a product that was created for the Followers segment of the Vodite market which is projected to have the largest growth over the next five years at over 3300%. Followers require a high performing product, but at an

Today Samsung has evolved into a group of companies unmatched by others in its range of industries and performance. It is now globally focused and responsive to the needs of each market, and more committed than ever to true innovation. The group’s three core business sectors are electronics, finance and trade and services.

And the maximum payoff (as per [3] above) for serving 50 customers will be (150 – 100) x 50= $2500.

Added to this, the difficulties met with Kelly to lead his communicate with customers; have discouraged the family, who has become aware regret. Finally, the family even wanted to return to their front, with its culture and customs.