GB Case Study

• Problem Statement : Revenue leakage is to be

curbed.
• Solution Approach:
 To enhance the conversion of free customer.
 To reduce failed charges for paid customer.
 Increase customer retention.

• Assumption
 Out of total 30000 active customers, 25000 are paid
subscribers and 5000 are paused subscribers.
 All the paid subscribers are availing the $50/month plan.
 Out of the current 10000 delinquent customers, no one has
opted to avail promotional discount.
 Revenue Calculation for 6 months
Total Customer Paid Pause Delinquent Delinquent Delinquent Failed Convern Revenue Revenue
Customer Customer (Active) (Pause) (Total) ( Free Trial) (Monthly) Loss
(Monthly)

1st Month Start 30000 25000 5000 1,300,000

1st month end 24000 19500 4500 5500 500 6000 280,000

2nd Month Start 25400 20900 4500 2600 1,090,000

(Adding 35% New)
2nd month end 20320 16270 4050 4630 450 5080 236,000

3rd Month Start 21720 17670 4050 2600 924,000

(Adding 35% New)
3rd month end 17376 13731 3645 3939 405 4344 201,000

4th Month Start 18776 15131 3645 2600 793,000

(Adding 35% New)
4th month end 15021 11740 3281 3391 365 3755 173,180

5th Month Start 16421 13140 3281 2600 689,825

(Adding 35% New)
5th month end 13137 10184 2953 2957 328 3284 151,109

6th Month Start 14537 11584 2953 2600 608,717

(Adding 35% New)
6th month end 11629 8972 2658 2612 295 2907 133,559

 Revenue realized for 1st 3 months = $3,314,000

 Revenue Realized for next 3 months = $2,091,542