Forecasting – The process

A technique for predicting future trends using historical data

The 5 “Elements” of Forecast

Customer Data

Segmenting subscribers by multiple metrics including expiry date, region, tenure, payment method, acquisition channel & acquisition offer.

Retention

Applying individual renewal rates to each group of subscribers to allow for an accurate, smooth forecast. A typical model has over 1,000 unique renewal rates all populated by the Foresight team.

Pricing

Acquisition and current subscription price is entered simply into the forecast model. A fully automated input makes it easy to use.

Acquisition

Volume of acquisitions (new subscribers) for current year and future years, according to budget set out. This can be as simple or complex as the client requires.

Scenario Modelling

Multiple scenarios can be run simultaneously through the model. For example, price rises, retention rates, offer mix etc.

Scenario Modelling

Using our forecast models, we can model price rise assumptions to understand the impact different price rise scenarios have on revenue and subs volume.

Gives you the ability to make informed business decisions and develop data-driven strategies
Allows for more accurate budgeting
Helps discover the ‘Why, Where, When and How’ of your sales activities
Opportunity for growth and increased income
Lowers liabilities and markdowns
Provides incentives for new product development

Customer Testimonial
“I have worked with Foresight for over 10 years in various companies. The knowledge and actionable insight they provide has proved invaluable every time.”

Karen Sharp – Head of Retention, Bauer