«> | Systems
7 ISEe Partnership
systems
Customer Acquisition
Dynamics
“Getting Started with STELLA and iThink” Workshop
International System Dynamics Conference
August 2, 2007
Presented by:
Karim Chichakly
Paul Gisborne
Joanne Egner
Customer
(Reinforcin
Model 1
g Loop)
Customer Recruitment
ae
Customers
Productivity
Marketing Spend
Marketing Spend Fraction
Revenue
—O
Revenue per Customer
Customers(t) = Customers(t - dt) + (Customer_Recruitment) * dt
INIT Customers = 100
INFLOWS:
Customer_Recruitment = Marketing_Spend*Productivity
Marketing_Spend = Revenue*Marketing_Spend_Fraction
Marketing_Spend_Fraction = 0.08
Productivity = 0.05
Revenue = Customers*Revenue_per_Customer
Revenue_per_Customer = 50
@ 1: Customers
4 1000
2
1
‘ 5004
2: Customer Recruitment
12:00 18.00 24.00
Run
Devices
0.00 6.00
[Page 1 Months:
wa 2? Untitled
Marketing Spend Fraction
Restore All
Customer Model 2
(Reinforcing Loop with Balancing Loop)
a
Potential Customer
Customers Recruitment Customers
age
d s
% y
Productivity ‘s Revenue
Wass gaa \
Marketing Spend Se)
\@ Revenue per Customer
=)
Marketing Spend Fraction
Customers(t) = Customers(t - dt) + (Customer__Recruitment) * dt
INIT Customers = 100
INFLOWS:
Customer__Recruitment = Marketing_Spend*Productivity
Potential__Customers(t) = Potential__Customers(t - dt) + (- Customer__Recruitment) * dt
INIT Potential__Customers = 900
OUTFLOWS:
Customer__Recruitment = Marketing_Spend*Productivity
Marketing_Spend = Revenue*Marketing_Spend_Fraction
Marketing_Spend_Fraction = 0.08
Productivity = 0.05
Revenue = Customers*Revenue_per_Customer
Revenue_per_Customer = 50
@ 1: Customers 2: Customer Recruitment
4] 1000 1 1
2 J i
d 500: 1
2
Li oe «a |
1 2.
z 0. + T 2 + "1
0.00 6.00 12.00 18.00 24.00
[Page 1 Months
St 2 Untitled
Marketing Spend Fraction
Restore All {Se 0.20
Run 5
Devices
Customer Model 3
(Introducing a Market Saturation Effect)
Potential Customer
Customers: Recruitment Customers
4 rad
i
My
Effect on X
Productivity Productivity Revenue
Marketing Spend \,
Revenue per Customer
Marketing Spend Fraction
Customers(t) = Customers(t - dt) + (Customer__Recruitment) * dt
INIT Customers = 100
INFLOWS:
Customer__Recruitment = Marketing_Spend*Productivity
Potential__Customers(t) = Potential__Customers(t - dt) + (- Customer__Recruitment) * dt
INIT Potential__Customers = 900
OUTFLOWS:
Customer__Recruitment = Marketing_Spend*Productivity
Effect_on__Productivity = Potential__Customers/INIT(Potential__Customers)
Marketing_Spend = Revenue*Marketing_Spend_Fraction
Marketing_Spend_Fraction = 0.08
Productivity = 0.05*Effect_on__Productivity
Revenue = Customers*Revenue_per_Customer
Revenue_per_Customer = 50
@ 1: Customers 2: Customer Recruitment
1 1000
1]
j 500-4
Li
1 a en Se ee
} 0 + — ‘
0.00 9.00 18.00 27.00 36.00
Page 1 ‘Months
ee v4 Untitled
Marketing Spend Fraction
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0.20,
Devices |
Run
Customer Model 4
(Introducing another loop - Customer Loss)
Potential Customer Lost
Customers: Recruitment Customers Customer Loss Customers
—~..
fe i
/ / oN
/ /
{ /
}
\
% Revenue
Effect on Productivity “
\
Productivity SO
Revenue per Customer
Ave Customer Loss
Marketing Spend
Marketing Spend Fraction
Customers(t) = Customers(t - dt) + (Customer__Recruitment - Customer_Loss) * dt
INIT Customers = 100
INFLOWS:
Customer__Recruitment = Marketing_Spend*Productivity
OUTFLOWS:
Customer_Loss = Customers*Ave_Customer_Loss
Lost__Customers(t) = Lost__Customers(t - dt) + (Customer_Loss) * dt
INIT Lost__Customers = 0
INFLOWS:
Customer_Loss = Customers*Ave_Customer_Loss
Potential__Customers(t) = Potential__Customers(t - dt) + (- Customer__Recruitment) * dt
INIT Potential__Customers = 900
OUTFLOWS:
Customer__Recruitment = Marketing_Spend*Productivity
Ave_Customer_Loss = 0.05
Effect_on__Productivity = Potential__Customers/INIT(Potential_ Customers)
Marketing_Spend = Revenue*Marketing_Spend_Fraction
Marketing_Spend_Fraction = 0.08
Productivity = 0.05*Effect_on__ Productivity
Revenue = Customers*Revenue_per_Customer
Revenue_per_Customer = 50
@ 1: Customers
4] 1000:
2
2: Customer Recruitment
si o-— - 2 —
0.00 9.00 18.00 27.00 96.00
Page 1 Months
St 2 Untied
Marketing Spend Fraction
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a Devices Tana
