Calculating ROI

In this recipe, we will be looking at an ROI calculation that involves enrollment in Customer Assistance Programs (CAP). While this specific example compares arrears between enrolled and unenrolled customers, you can use segments and explorations to model the financial benefit of any number of program enrollment use cases.

Putting it All Together

1. Create two customer segments
2. Set up an exploration comparing the segments
3. Calculate estimated ROI per enrollment

Step 1:

Segment 1: All delinquent + on CAP

Segment 2: All delinquent + not on CAP

Step 2:
Create an exploration by selecting segments 1 and 2 and the attribute "current arrears" or "overdue balance."

Select attribute "current arrears"/"overdue balance."

Step 3:
Calculate the estimated ROI per enrollment as:
Average arrears of Segment 2 - Average arrears of Segment 1

This estimated savings per enrollment can be used to calculate the expected ROI of boosting enrollment across your addressable audience.

Conclusion
By following this recipe, you can estimate the ROI per CAP enrollment and quantify the potential financial impact of increasing program adoption. The expected ROI can be used to build a data-driven business case for investing in targeted marketing to boost CAP enrollment.