Attrition Analysis, Midperiod Convention and Customer Retirement Forecasts

2021 ◽  
Vol 40 (2) ◽  
pp. 68-72
Author(s):  
Richard K. Ellsworth

Attrition analysis is widely used by valuation professionals as a recognized method to forecast customer population retirement behavior. With attrition analysis, an expected customer population retirement profile is developed through the study of historical customer retirement activity and applied to the customer population when valuing customer relationship intangible assets. As a frequent reviewer of customer relationship valuations, valuation practitioners regularly develop an attrition analysis founded on a midperiod retirement convention but then apply an end of period convention when forecasting customer retirements. Since attrition analysis relies on midperiod retirement convention and the exponential distribution, analytical consistency is maintained when a midperiod retirement convention is used to forecast customer retirement behavior for the valuation of customer relationship intangible assets.

2018 ◽  
Vol 60 (5) ◽  
pp. 1058-1073 ◽  
Author(s):  
Aparna Bhatia ◽  
Khushboo Aggarwal

Purpose The purpose of this paper is to evaluate the impact of investment in Intangible Assets on the corporate performance of Indian companies for a period of twelve years from 2001 to 2012. Design/methodology/approach Intangible assets have been measured using the “Intangible Assets Monitor” method developed by Sveiby (1997). Findings The results of panel data regression model reveal that Intangible Assets affect performance of companies positively after controlling for firm size, age, leverage, physical capital intensity, market share, risk, industries and dummy year. Practical implications The study is of immense importance to corporate managers in improving managerial insight into the significance of investment in Intangible Assets. The results direct Indian managers to understand and realize the importance of Intangible Assets and keenly invest in research and development, technology, software, advertising, customer relationship management and human resources to further augment their performance. Originality/value Specifically considering India, the research related to the association between Intangible Assets and performance is undersized. Thus, the present study would contribute to the existing literature comprehensively.


2008 ◽  
Vol 27 (2) ◽  
pp. 85-89
Author(s):  
Richard K. Ellsworth

Abstract Attrition analysis is recognized by valuation professionals as a simple method to estimate customer population life characteristics. With attrition analysis, customer retirement rates are assumed to be constant across the age vintages of the population. However, many customer populations exhibit irregular retirement rates across population age vintages such that relaxation of the constant attrition rate assumption alters the population remaining life characteristics.


2007 ◽  
Vol 26 (4) ◽  
pp. 102-105
Author(s):  
Richard K. Ellsworth

Abstract The valuation profession employs a variety of statistical techniques, from simple attrition analysis to more complex retirement rate analysis, to assess customer population life characteristics. For many customer populations, the account survival characteristics are assumed to be constant across the various age cohorts of the population such that customer relationship value is indifferent to account age. However, relaxation of the constant attrition rate characteristic can have a direct influence on the magnitude of the value ascribed to the customer relationship value.


2019 ◽  
Vol 22 (5) ◽  
pp. 609-637 ◽  
Author(s):  
Dalila Brown ◽  
Pantea Foroudi ◽  
Khalid Hafeez

Purpose This paper aims to explore the relationship between corporate cultural/intangible assets and marketing capabilities by examining managers’ and entrepreneurs’ perceptions in a retail setting. Design/methodology/approach Nineteen face-to-face interviews were conducted with UK small and medium sized enterprise (SMEs) managers and entrepreneurs to identify six sub-capabilities that form marketing capability. The authors further validated the relationship between marketing sub-capabilities and its antecedent tangible and intangible assets. The qualitative approach used provided a deeper insight into the motivations, perceptions and associations of the stakeholders behind these intangible concepts, and their relationships with their customers. Findings The research identified that there is a strong relationship between tangible and intangible assets, their components and the following capabilities: corporate/brand identity management, market sensing, customer relationship, social media/communication, design/innovation management and performance management. In addition, companies need to understand clearly what tangible and intangible assets comprise these capabilities. Where performance management is one of the key internal capabilities, companies must highlight the importance of strong cultural assets that substantially contribute to a company’s performance. Originality/value Previous work on dynamic capability analysis is too generic, predominantly relating to the manufacturing sector, and/or focussing on using a single case study example. This study extends the concept of marketing capability in a retail setting by identifying six sub-capabilities and describing the relationship of each with tangible and intangible assets. Through extensive qualitative analysis, the authors provide evidence that by fully exploiting their embedded culture and other intangible components, companies can more favourably engage with their customers to attain a sustainable competitive advantage.


2018 ◽  
Vol 7 (2) ◽  
pp. 180
Author(s):  
Wiyanto Wiyanto ◽  
Fajar Butsianto ◽  
Karsito Karsito

Information technology is rapidly developed in this century that impact to various aspects of the organization really need information technology to support the performance and everyday business processes. In health services, information technology is required to process and storage the patient medical records, so that the patient's medical record is well preserved, and competitive advantage can be obtained between patient and polyclinic. The application of Customer Relationship Management (CRM) approach can be developed by implementing information system of medical record history to get new patient and retain existing patient, improving relationship with patient and maintaining patient loyalty as well as supporting the company/organization to provide excellent service to customers in real time through the advantage of information technology. The aims of this research are to understand patient medical record by CRM approach and Unified Modeling Language (UML) for system design, system validation using Forum Group Discussion (FGD), and using software testing Model ISO 9126. The result of this research are Medical Record History Information System and the result of system validation with FGD is 100% accepted, the result of system test using Model ISO 9126 is good with success rate 82,86%, so it can give contribution to polyclinic.


2001 ◽  
Vol 30 (8) ◽  
pp. 417-422 ◽  
Author(s):  
Hajo Hippner ◽  
Stephan Martin ◽  
Klaus D. Wilde

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