Executive Summary
The business is for an independent insurance agency selling
property and casualty insurance on behalf of several different carriers. For an
agency, residual commissions are key for the overall revenue; since the value
of a new customer cannot be measured by the first month’s commission, customer
lifetime value (LTV) is used. This agency is in a startup phase, where
retention curves are still unclear and commission contracts are being renegotiated
frequently based on historical attrition. The project takes data pulled from
the company’s servers and calculates the LTV for each new customer, allowing
decision makers to see how the company is performing against budget. Using VBA
allows the commissions and retention curves to be modified quickly in the
spreadsheet without having to modify any formulas.
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